Your El Salvador compensation and benefits plan is key to attracting and retaining top talent. When expanding to El Salvador, you’ll need to ensure that you stay compliant by meeting the country’s minimum wage and providing all the relevant statutory benefits. But do you know which benefits you need to provide and what employees are likely to expect?
El Salvador compensation laws
El Salvador does not have a national minimum wage, but it does have minimum wages that change depending on the industry, including:
- USD 359.16 a month for retail employees.
- USD 365.00 a month for industrial workers.
- USD 359.16 a month for apparel assembly workers.
- USD 272.66 a month for agriculture industry workers.
Salaries are usually paid semi-monthly, and employers also need to give out a Christmas bonus. Each bonus amount will depend on how long the employee has worked for your company.
Guaranteed benefits in El Salvador
Providing guaranteed benefits as part of your El Salvador benefits management plan can help you stay compliant and give you a starting point for providing other benefits. Start by giving employees time off for the country’s 13 holidays, as well as 15 annual vacation days. Employers also pay for an employee’s first 3 sick days in full, and then social security covers 75% of any remaining sick time.
El Salvador benefits management
Once you put together a benefits plan, you need to discuss how to distribute both statutory and additional provisions. Prioritize supplementary benefits that employees may expect. By doing so, you can show them you care about their health and well-being. For example, you could give out performance-based bonuses or provide a private healthcare plan.
Restrictions for benefits and compensation
The biggest restriction companies run into is needing an established subsidiary before providing benefits and compensation in El Salvador. You need a registered entity to work in the country and handle everything from hiring to forming business relationships. However, it can take weeks, months, or even a year before you can begin operations.
Instead, you can work with G-P. With us, you don’t have to go through the lengthy subsidiary setup process, as you can use our El Salvador EOR. Plus, you can count on us to manage compliance while you focus on your business.
Partner with G-P to build your everywhere workforce.
As your partner in global expansion, G-P will handle payroll and compliance, so you can focus on growing your team and scaling your business. Our market-leading global employment platform is powered by the first fully customizable suite of global employment products and backed by the industry’s largest team of in-country HR and legal experts to streamline payroll management and help you offer competitive, compliant local benefits.
Learn more about our platform and request a proposal today.