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* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.
El Salvador offers a lower cost of living compared to many developed countries. This can result in cost savings for businesses looking to hire skilled professionals or build a dedicated team.
Many Salvadorans are bilingual in Spanish and English, aiding communication for businesses targeting Spanish-speaking markets or operating in English-dominated environments.
El Salvador's growing IT sector, particularly in software development and IT services, boasts a pool of talented professionals, making it an attractive destination for businesses needing tech expertise.
El Salvador's Central Standard Time (CST) aligns with North American business hours, facilitating real-time collaboration and communication between teams across the Americas.
In El Salvador, employment contracts can be either written or verbal, but it is common to use written agreements. A detailed written employment contract typically outlines the following:
The probationary period varies depending on the type of role and is specified in the employment agreement. Probation periods cannot exceed 30 days.
The standard working week in El Salvador comprises 44 hours, usually distributed as 8 hours a day over five and a half days.
In El Salvador, extra work beyond the regular weekly hours is considered overtime, and its terms are defined in the employment contract or collective agreements. There are no specific limits on hours, except for minors. Overtime, usually exceeding 44 hours per week, is paid at a rate of 200% of the employee's regular salary.
Minimum wage rates in El Salvador vary by industry, with sector-specific amounts ranging from 243.46 USD for agricultural workers to 365.00 USD for those in the industry and commerce services sector.
It's common to give employees a 13th-month salary as a Christmas bonus around December 20th. The amount depends on their years of service: 15 days' salary for 1-3 years, 19 days for 3-10 years, and 21 days for over 10 years.
Individual income tax in El Salvador varies from 0% to 30%, and the calculation follows a progressive rate structure.
Employers in El Salvador contribute 8.75% to the pension fund. Employees qualify for a full pension by meeting either age and contribution requirements: 55 for women, 60 for men, with 25 years of contributions, or achieving 30 years of contributions at any age. The pension begins at 30% of the base salary for the initial three years and increases by 1.5% annually thereafter.
The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in El Salvador tailored to your needs.
The process of termination is subject to the terms outlined in the employment agreement or collective agreement. It varies based on factors such as the type of contract, length of service, and the reason for termination. The employer can legally terminate the contract under the following grounds:
In El Salvador, the notice period is based on the terms in the employment contract or agreement and is not a legal requirement. However, it is customary for employers to request a minimum of 7 days notice from employees who have completed their probationary period.
Severance pay follows specific rules and varies based on the reasons for employment termination. No severance is given for voluntary resignations or the natural end of a contract. If required, it's usually calculated as 30 days of salary for each year of service.
El Salvador mandates the observance of the following national holidays:
The Institute of Salvadorian Social Security (ISSS) serves as El Salvador's primary social security system and aims to ensure access to healthcare and social protection for all Salvadorans.. Through montly contributions, employees are entitled to the following benefits:
Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.
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