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From
$249/month
$49/month
2% of gross salary / month
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).
Hire in El Salvador, and pay employees through our platform or app.
Our El Salvador EOR solution is the most affordable on the market.
Fast onboarding in El Salvador, hire in as little as 24 hours.
We draft labor contracts compliant with El Salvador labor law.
We administer all mandatory benefits and contributions in El Salvador.
It doesn’t stop with El Salvador — we are an international EOR
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.
30 days (maximum)
7 days (standard)
1 month’s salary per year of service
30 days (maximum)
7 days (standard)
1 month’s salary per year of service
Normal working hours in El Salvador are 44 hours per week spread over up to six days.
| Date | Holiday name |
|---|---|
| 1 Jan 2025 | New Year’s Day |
| 17 Apr 2025 | Maundy Thursday |
| 18 Apr 2025 | Good Friday |
| 19 Apr 2025 | Holy Saturday |
| 20 Apr 2025 | Easter Sunday |
| 1 May 2025 | Labour Day |
| 10 May 2025 | Mothers’ Day |
| 17 Jun 2025 | Fathers’ Day |
| 6 Aug 2025 | Feast of San Salvador |
| 15 Sep 2025 | Independence Day |
| 2 Nov 2025 | All Souls’ Day |
| 25 Dec 2025 | Christmas Day |
Employees in El Salvador are usually entitled to 15 days of paid vacation leave annually.
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.
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.
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%.
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.
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.
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.
Hire borderless talent with Horizons
With Horizons, you get quick service, transparent pricing, and expert support.
Generally speaking, the terms “El Salvador PEO” and “El Salvador EOR” are used interchangeably.
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.
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.
Holiday Schedule in El Salvador [2025]
