El Salvador EOR & PEO

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Hire in El Salvador

Horizons provides compliance solutions to ensure your business in El Salvador operates in line with El Salvador labor laws and tax regulations. Businesses benefit from hiring in, investing in, or job outsourcing to, El Salvador in a range of industries, from customer service, to accounting services, to software development.

We also process monthly payroll, and, as a El Salvador Employer of Record, absorb all local employer liabilities. Partnering with our El Salvador EOR is the quickest and most cost-effective way to enter the El Salvador market.

Note, a El Salvador Employer of Record is also known as a El Salvador Professional Employer Organization (PEO).

Facts & Stats

stay compliant with El Salvador labor laws

Employment Laws

Employment contracts in El Salvador

When hiring in El Salvador, employers can technically use either verbal or written contracts. However, we recommend always writing up formal contracts with any relevant details of the agreement such as compensation, benefits, expected working hours, and so on. COntracts should also be written in Spanish and use the currency of the US dollar.

Fixed-term

Indefinite

Working hours in El Salvador

Normal working hours in El Salvador are 44 hours per week spread over up to six days.

Holiday Schedule in El Salvador [2024]

El Salvador has a range of national public holidays that are celebrated annually. In 2024 these holidays are:

Date	Holiday name
1 Jan, 2024	New Year’s Day
2 Jan, 2024	New Year’s Day Holiday
28 Mar, 2024	Maundy Thursday
29 Mar, 2024	Good Friday
30 Mar, 2024	Holy Saturday
1 May, 2024	Labor Day / May Day
10 May, 2024	Mothers’ Day
17 Jun, 2024	Fathers’ Day
22 Jun, 2024	Teachers’ Day
6 Aug, 2024	Celebrations of San Salvador
15 Sep, 2024	Independence Day
2 Nov, 2024	All Saints Day
25 Dec, 2024	Christmas Day
26 Dec, 2024	Boxing Day

El Salvador vacation leave

Employees in El Salvador are usually entitled to 15 days of paid vacation leave annually.

El Salvador sick leave

Employers in El Salvador must cover full pay up to the first three days of employee sick leave. Beyond this, the country’s social security scheme covers three-quarters of pay for any further sick leave.

Parental leave in El Salvador

Female employees in El Salvador are entitled to 12 weeks of paid maternity leave. This leave is covered at normal pay, with 75% paid by the state and the remaining 25% covered by the employer. There is no mandatory paternity leave allowance, but many employers do choose to offer some.

Terminations and severance in El Salvador

Generally, there is no requirement to give notice of termination in El Salvador, but it is good practice to do so. Employees may also wish to add terminations clauses to employment contracts. Severance payments are common and generally equal around one month of salary for every year of service.

Taxation in El Salvador

Employers and employees in El Salvador must pay a percentage of salary toward the nation’s social security scheme at rates of 7.5% and 3% respectively. Income tax in El Salvador is progressive, with rates between 0% and 30% depending on income level. For non-domiciled individuals, the rate is fixed at 30%. Corporate tax in El Salvador is 30%.

Health coverage in El Salvador

Due to the poor quality of public healthcare in El Salvador, many people use private care. For this reason, many employers offer private medical insurance as part of their benefits packages.

hassle-free El Salvador compensation & benefits

Compensation & Benefits

Compensation laws in El Salvador

El Salvador does not have a single fixed minimum wage. Varies by sector; approximately USD 300 per month for the commerce and services sector. The precise minimums differ depending on the type of work, so it is important that you understand which categories your employees fall into to ensure compliance with the law.

Benefit management in El Salvador

Setting up a benefits system for your Salvadoran employees can be difficult and complicated to navigate if you are unfamiliar with the country and its labor laws. If you want to tackle the setup independently, you can expect it to take several weeks and potentially present delays to your expansion process. Alternatively, you could use a payroll outsourcing firm to handle your Salvadoran payroll. At Horizons, our El Salvador payroll experts can set up and manage your benefits system for you, freeing you to focus on your successful expansion.

El Salvador Employer Of Record Peo

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Hire in El Salvador

Employment Laws

Working hours in El Salvador

Compensation & Benefits

Frequently asked questions

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Frequently asked questions

What is the difference between an El Salvador PEO and an El Salvador EOR?

Generally speaking, the terms “El Salvador PEO” and “El Salvador EOR” are used interchangeably.

Can an EOR in El Salvador hire both local and foreign nationals to work in El Salvador?

An in El Salvador can feasibly hire both local and foreign nationals to work in El Salvador.

However, the ability of Horizons to sponsor your foreign national employee in El Salvador may be limited due to visa quotas practiced in many countries.

Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.

How long does Horizons' El Salvador EOR service take to hire an employee?

In most cases, Horizons’ El Salvador EOR can hire & onboard your employee within 24 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in El Salvador.

Is it possible to get a work visa in El Salvador?

It is possible to get a work visa in El Salvador. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in El Salvador are limited, however—get started today to secure your employees’ visa spot.

El Salvador EOR & PEO

Start hiring in El Salvador

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Hire in El Salvador

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stay compliant with El Salvador labor laws

Employment Laws

Employment contracts in El Salvador

Fixed-term

Probationary period

Termination notice period

Severance

Indefinite

Probationary period

Termination notice period

Severance

Working hours in El Salvador

El Salvador vacation leave

El Salvador sick leave

Parental leave in El Salvador

Terminations and severance in El Salvador

Taxation in El Salvador

Health coverage in El Salvador

hassle-free El Salvador compensation & benefits

Compensation & Benefits

Compensation laws in El Salvador

Benefit management in El Salvador

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