El Salvador Employment Guide
El Salvador Employment Guide
El Salvador, the smallest country in Central America, has a population of around 6.5 million. Its economy relies on agriculture, manufacturing, and services, with remittances playing a significant role. Employment in El Salvador is governed by the Labor Code, which regulates contracts, working hours, minimum wage, social security, and employee protections. Employers must comply with tax and social security contributions, provide mandatory benefits, and follow rules on termination and severance. Foreign workers require work permits.
Check recruitment costs
Currency
United States Dollar (USD)
Capital
San Salvador
Official language
Spanish
Salary Cycle
Monthly
Our Employment Guide in El Salvador
Browse the following tags to learn all about hiring employees in El Salvador
Navigating Employment Termination in El Salvador
As an international HR professional, I've observed that employment termination procedures in El Salvador require careful navigation. Unlike jurisdictions with at-will employment, Salvadoran labor law establishes specific termination requirements that employers must follow after probation periods conclude.
Legally Compliant Termination Pathways
Employers operating in El Salvador should understand these authorized termination methods:
- Voluntary resignation initiated by the employee
- Mutual agreement between both parties
- Employer-initiated termination based on:
- Probationary period assessment
- Objective business reasons
- Disciplinary dismissal for cause
- Performance issues related to job incompatibility
- Natural contract expiration
Notice Period Requirements
Salvadoran legislation mandates minimum notice periods that escalate with service duration:
| Years of Service | Required Notice |
|---|---|
| 1-3 years | 15 calendar days |
| Over 3 years | 30 calendar days |
No notice period applies during probationary employment. Companies like SailGlobal often implement slightly longer notice periods as a best practice to maintain positive employer branding.
Severance Compensation Framework
Employees terminated without just cause or those resigning under specific circumstances receive statutory severance:
- Voluntary resignation: Equivalent to 15 days of base salary
- Unjustified dismissal: Minimum 30 days of base salary
In one recent case, a manufacturing company faced significant penalties for failing to calculate severance correctly, highlighting the importance of precise compliance.
Hire easily in El Salvador
Compare employee hiring costs across over 100 countries worldwide, helping you accurately calculate labor costs. Try it now
Cost Calculator
Please select the country/region you wish to recruit from, and the calculation can be done with just a few clicks.
USD