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Compensation & Benefits in SvEl Salvador.






Country Capital

San Salvador


United States dollar (USD; since 2001)

Your El Salvador compensation and benefits plans are key to making sure you retain your talented employees and attract them to your company in the first place. Plus, you can 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?

The G-P team has years of experience providing benefits and compensation to employees in other countries. We have subsidiaries around the world, which we can use to help you expand quickly while we act as the Employer of Record. Through El Salvador compensation and benefits outsourcing, we’ll make sure your employees get the money and benefits they deserve when working for your company.

El Salvador Compensation Laws

El Salvador does not have a national minimum wage, but it does have minimum wages that change depending on an employee’s industry, including:

  • $359.16 a month for retail employees
  • $365.00 a month for industrial laborers
  • $359.16 a month for apparel assembly workers
  • $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 thirteen holidays, as well as 15 annual vacation days. Employers also pay for an employee’s first three sick days in full, and then social security covers 75% of any remaining sick time.

Your employees will also care about maternity and paternity leave. Expecting mothers should get 12 weeks of maternity leave — 100% is paid by Social Security, that is, during this time the collaborator will not receive the employer’s salary, but must claim it from the ISSS through her maternity disability document. Although El Salvador does not have any paternity leave regulations, you can still provide a few days off.

El Salvador Benefits Management

Once you put together a benefits plan, you need to discuss how to disperse both statutory and additional benefits. Add benefits not required by law but that employees may expect. By doing so, you can show them you care about their health and happiness. For example, you could give out performance-based bonuses or provide a private health care plan.

Restrictions for Benefits and Compensation

The biggest restriction companies run into is needing an established subsidiary before providing benefits and compensation. 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 your vision becomes a reality.

Instead, you can work with G-P and benefit from El Salvador benefits and compensation outsourcing. You don’t have to go through the lengthy subsidiary setup process, as you can use our El Salvador PEO. Plus, you can count on us to manage the risk of compliance while you manage your business.

Choose G-P Today

You can trust us to help you succeed during the expansion process. Contact us today for more information about El Salvador compensation and benefits outsourcing.


THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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