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Our global employment products, including G-P Meridian Prime™ and G-P Meridian Core™, are backed by the largest team of HR and legal experts in the industry. We handle the growing complexities of compliant global expansion — so you can focus on opportunities ahead.
As a global EOR expert, we manage payroll, employment contract best practices, statutory and market norm benefits, employee expenses, as well as severance and termination. You’ll have peace of mind knowing you have a team of dedicated employment experts assisting with every hire. G-P allows you to harness the talent of the brightest people in 180+ countries around the world, quickly and easily.
Hiring in El Salvador
When negotiating terms of an employment contract and offer letter with an employee in El Salvador it may be useful to keep the following in mind.
Employment contracts in El Salvador
In El Salvador, employment contracts can be oral or written, but it’s best practice to put a strong, written contract in place, in Spanish, which spells out the terms of the employee’s compensation, benefits, and termination requirements.
An offer letter and employment contract in El Salvador should always state the salary and any compensation amounts in U.S. dollars rather than another currency.
Working hours in El Salvador
El Salvador has a 6-day workweek that totals 44 hours.
Holidays in El Salvador
- New Years Day
- Maundy Thursday
- Good Friday
- Good Saturday
- Resurrection Sunday
- Labor Day
- Father’s Day
- Celebrations of San Salvador
- Independence Day
- All Saints’ Day
- Christmas Day
Vacation days in El Salvador
Employees are entitled to 15 days of paid annual leave.
El Salvador sick leave
Employees are entitled to up to 26 weeks of paid sick leave. The employer is obliged to pay 75% of the employee’s basic salary.
Maternity/paternity leave in El Salvador
Expecting mothers should get 12 weeks of maternity leave — 6 of which must be taken after childbirth. Additionally, a benefit equivalent to 75% of the basic salary should be paid in advance.
Employers may deduct from the monetary benefit the equivalent of what the worker would have received as a subsidy in money under the Social Security law and its implementing regulations.
Maternity leave will start when the professional presents the official maternity leave certificate; they will also have to present it to the ISSS to receive full compensation. Although El Salvador does not have any paternity leave regulations, companies can still provide a few days off as a supplementary benefit.
Health insurance in El Salvador
The Salvadoran Social Security Institute (ISSS) offers health insurance and health services to citizens who have a formal job.
El Salvador supplementary benefits
Common benefits include:
- Teleworking allowance
- Home office allowance
- Telephone allowance
- Car allowance
Termination/severance in El Salvador
In El Salvador, employers must notify employees of their dismissal. Upon request of the employee, the employer must issue a certificate which must include the reasons for termination. Employees are entitled to receive 1 month of base salary for each year they worked at the company.
Paying taxes in El Salvador
Taxes in El Salvador apply to both employers and employees. Required municipal taxes vary by location, but the corporate tax rate remains fixed at 30%. Personal income taxes should be deducted from employees’ paychecks, as the country uses a pay-as-you-earn (PAYE) system.
Employers have to pay social security at a rate of 7.5%, while employees owe 3%. All the revenue companies make abroad is subject to a 1.75% tax, and VAT is set at 13%.
Why G-P?
At G-P, we help companies unlock the power of the everywhere workforce through our industry-leading global employment platform. Let us handle the complex and costly tasks involved in finding, hiring, onboarding, and paying your team members, anywhere in the world, with the speed and guaranteed global compliance your business needs.
Contact us today to learn more.