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hire in El Salvador

El Salvador PEO &
Employer of Record

SALARY PAYMENT IN United States Dollar (USD)

CONTRACT LANGUAGES Spanish / English

PAYROLL TAX 15.25% – 16.25%

PAYROLL CYCLE Monthly 

TIME TO HIRE  24 hours

Hire and pay talents
with Horizons in
180+ countries

Simple, compliant hiring with Horizons PEO

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 PEO is the quickest and most cost-effective way to enter the El Salvador market. 

Facts & Stats

PEO Platform Hire in El Salvador, and pay employees through our platform or app. PEO Cost Our El Salvador PEO solution is the most affordable on the market. Time-to-hire Fast onboarding in El Salvador, hire in as little as 24 hours.
Contracts We draft labor contracts compliant with El Salvador labor law. Local Benefits We administer all mandatory benefits and contributions in El Salvador. 180+ Countries It doesn’t stop with El Salvador — we are an international PEO
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
Probationary period

30 days (maximum)

Termination notice period

7 days (standard)

Severance

1 month’s salary per year of service 

Indefinite
Probationary period

30 days (maximum)

Termination notice period

7 days (standard)

Severance

1 month’s salary per year of service 

Working hours in El Salvador

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

Hire compliantly in El Salvador without a local entity.

Quick, compliant hiring in 24 hours—no subsidiary required.

Public holidays in El Salvador 2023

El Salvador has a range of national public holidays that are celebrated annually. In 2023 these holidays are:
Date Holiday name
1 Jan , 2023 New Year’s Day
2 Jan , 2023 New Year’s Day Holiday
6 Apr , 2023 Maundy Thursday
7 Apr , 2023 Good Friday
8 Apr , 2023 Holy Saturday
1 May , 2023 Labor Day / May Day
10 May , 2023 Mothers’ Day
17 Jun , 2023 Fathers’ Day
22 Jun , 2023 Teachers’ Day
6 Aug , 2023 Celebrations of San Salvador
15 Sep , 2023 Independence Day
2 Nov , 2023 All Saints Day
25 Dec , 2023 Christmas Day
26 Dec , 2023 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. 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.

Hire in El Salvador in 24h
without your own local entity.

With Horizons, you get quick service, transparent pricing, and expert support.

FAQs

An El Salvador PEO and an El Salvador EOR are two types of companies which specialize in providing human resources services to businesses in El Salvador.

The main difference between an El Salvador PEO and an El Salvador EOR is in the scope of their services.

El Salvador PEOs provide a full range of HR services, including payroll, benefits administration, and employee recruiting—all under one roof as a co-employer. Engaging an El Salvador PEO is essentially outsourcing your HR duties in El Salvador.

El Salvador EORs actually take over as the legal employer of your employees based abroad. El Salvador EORs become responsible for labor compliance for your employees in El Salvador.

At Horizons, we offer both PEO and EOR services in El Salvador. Get in touch now and let us know what service you are seeking.

A PEO 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.

In most cases, Horizons’ El Salvador PEO 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.