Minimum Wage in El Salvador: Rates, Trends & Compliance

What Is the Minimum Wage in El Salvador?

As of February 2025, El Salvador's minimum wage varies by industry, with the most recent adjustment implemented in August 2021. The rates are standardized in U.S. dollars (USD), as El Salvador uses the USD as its official currency. 

The current monthly minimum wages are:

‍

Source: El Salvador Perspectives

‍

Average vs. Reasonable vs. Typical Minimum Wages

Average Minimum Wage: This refers to the mean wage calculated across various sectors. In El Salvador, the average minimum wage is sector-dependent, ranging from $365.00 to $243.46 per month. 

Reasonable Minimum Wage: A wage level considered sufficient to cover basic living expenses. While the legal minimum wage in El Salvador ranges from $243.46 to $365.00 monthly, discussions continue about whether these amounts meet the reasonable cost of living, especially given the varying expenses across regions.

Typical Minimum Wage: The most commonly observed minimum wage within the country. In El Salvador, the typical minimum wage aligns with the $365.00 per month rate prevalent in commerce, services, and industry sectors.

‍

How Does Minimum Wage Apply to Different Workers in El Salvador?

Full-Time Employee Wages

Full-time employees are entitled to the full monthly minimum wage corresponding to their industry sector. For example, a full-time worker in the commerce sector would earn $365.00 per month.

Part-Time Employee Wages

Part-time employees receive wages proportional to the hours they work, based on the standard hourly rates derived from the monthly minimum wage of their respective sectors.

Interns and Trainees

El Salvador's labor laws do not explicitly address minimum wage provisions for interns and trainees. Compensation for these positions varies and may be subject to employer agreements.

Expats

Expatriates working in El Salvador are subject to the same minimum wage laws as local employees.

‍

Factors Influencing Minimum Wage in El Salvador

Industry-Specific Variations

Minimum wage rates differ across industries to reflect economic conditions and labor demands. The commerce and services sectors have higher minimum wages compared to agriculture.

Economic Conditions

Inflation and employment rates significantly impact minimum wage policies. The government reviews wages to ensure they align with the cost of living adjustments.

Government Policies and Legislation

The Salvadoran government, through its Ministry of Labor, establishes and reviews minimum wage rates in consultation with labor and employer representatives.

‍

Minimum Wage History and Trends in El Salvador

El Salvador's minimum wage has undergone periodic adjustments, with the most recent increase in August 2021. Future reviews will consider economic conditions and labor market changes.

​El Salvador's minimum wage policy has undergone significant changes over the past decade, reflecting efforts to balance economic growth with workers' welfare.​

Historical Changes: 

• 2011: The minimum wage increased by 8%.
• 2013: A series of 4% annual increases commenced, culminating in a total 16% rise over four years (ending in 2015). 
• 2017: A historic adjustment saw the minimum wage rise by approximately 20.7%, marking the largest increase in the country's history. This adjustment varied across sectors.
• 2021: The minimum wage was increased by 20.1%.

Recent Regulations

As of 2024, the minimum wage rates established in 2021 remain unchanged.

Future Projections

While specific future adjustments to the minimum wage have not been officially announced, El Salvador's labor laws mandate a review of the minimum wage every three years. The next review is anticipated in 2024, considering factors such as inflation, cost of living, and economic conditions.

In summary, El Salvador's minimum wage policy has evolved through significant adjustments over the past decade, with periodic reviews ensuring alignment with the country's economic landscape and workers' needs.

‍

Minimum Wage for Top Paying Roles in El Salvador

While El Salvador has established minimum wage rates for various sectors, top-paying roles often have salaries negotiated on a case-by-case basis, reflecting the specialized nature of these positions. Top paying roles in El Salvador and their average salaries include: 

• Country Manager/Director: Oversees operations and strategic planning for a company's branch within El Salvador. Average monthly salary: approximately $20,936 USD.​
• Chief Executive Officer (CEO): Leads the overall operations and resources of a company. Average monthly salary: around $20,917 USD.
• IT Director: Manages the information technology strategy and implementation within an organization. Average monthly salary: about $20,738 USD.
• Call Centre Director: Oversees operations of call centers, ensuring customer service standards are met. Average monthly salary: roughly $18,731 USD.
• Leasing Director: Manages leasing operations and strategies within a company. Average monthly salary: approximately $18,240 USD.

‍

Discover Your Competitive Edge

Ensuring your compensation packages align with evolving minimum wage standards is crucial for attracting top talent and maintaining compliance. Try Playroll's Salary Benchmarking Tool to align your pay scales with industry standards.

Salary Benchmarking

‍

How To Stay Compliant When Hiring in El Salvador With Playroll

Expanding your workforce across international borders is an exciting step, but it can be a logistical nightmare to hire and pay employees in different countries. That’s the advantage of using a trusted Employer of Record like Playroll:

• ‍Scale your global team: Legally hire and swiftly onboard new hires in 180+ regions without the red tape by offloading the HR admin to Playroll, so you can freely explore new markets and focus on growth.
• ‍Pay your team accurately: Ensure your international employees and global contractors are paid on time, every time, and set up centralized global payroll processes.
• ‍Meet minimum wage requirements: Our built-in compliance checks and vetted contracts mean your agreements will always meet all legal requirements for statutory benefits, minimum wage, and more.

‍