Global HR Compliance in El Salvador
Hiring international talent in El Salvador brings opportunities, but also legal, operational, and reputational risks if handled without local insight. Whether your company is expanding into the Salvadoran market or hiring foreign nationals to support regional growth, understanding how employment really works on the ground is essential.
El Salvador’s labour framework is a mix of statutory obligations and informal practices. Many businesses underestimate the compliance requirements when onboarding or offboarding employees, especially those on non-standard contracts or in sales-based roles. Missteps in compensation, benefits, or termination procedures can lead to unexpected liability.
Acumen International offers a fully compliant Global Employer of Record solution to help companies legally employ and pay workers in El Salvador without needing to establish a local entity.
Whether you’re hiring a local national or assigning foreign talent to work in El Salvador, this guide outlines what you need to know about contracts, wages, working hours, terminations, and more.
Hiring and Firing Workforce in El Salvador Guide
Employment Contracts in El Salvador
While employment contracts are not legally required to be in writing to be valid, employers must provide written confirmation of certain terms no later than 8 days after the employment begins.
The existence of an employment relationship can be proven by payslips, bank statements, witness testimony, or other indirect means.
Contracts may be:
- Written or verbal (though written is strongly advised)
- Fixed-term or open-ended
- Full-time or part-time
All employees, regardless of contract type, are entitled to the same legal protections. The Labour Code prohibits discriminatory treatment of part-time or fixed-term workers compared to their full-time, permanent counterparts.
Minimum Employment Conditions in El Salvador
Working Hours
- Maximum of 44 hours per week for daytime work
- Maximum of 39 hours per week for night shifts
Probation Period
- 30 calendar days
- Either party may terminate without notice or justification during this time
Paid Annual Leave
- Minimum of 15 paid working days per year after 1 year of continuous service
- A minimum 30-minute daily lunch break is mandatory
Parental Leave
- Maternity leave: Protected by law; includes paid time off, breastfeeding leave, and protection against dismissal
- Paternity leave: Not mandated by law
- Other family leave: Discretionary, unless contractually agreed
Sick Leave
- No statutory sick pay mandated by law
- Terms often vary by contract or employer policy
Overtime Pay
- Must be paid at premium rates, typically agreed by contract
- Employers must track overtime and ensure compliance.
Minimum Wage in El Salvador
El Salvador’s minimum wage varies by sector. As of the last confirmed increase in August 2021, the monthly minimum wages are:
- Commerce, Services, Industry, and Sugar Mills: US$365.00/month
- Textile and Clothing Maquila (Apparel Assembly): US$359.16/month
- Sugar Cane Harvesting and Coffee Mills: US$272.66/month
- Agricultural Sector, Fishing, and Coffee Harvesting: US$243.46/month
Important Note regarding future changes:
As of April 2025, President Nayib Bukele has proposed a 12% increase across all sectors, which, if approved, would take effect in June 2025. This would raise the minimum wage for the commerce and services sector to approximately US$408 per month, with other sectors adjusting proportionally.
However, as of now, the August 2021 figures are the currently enacted minimum wages.
Termination and Dismissal Rules
Employer-Initiated Termination
Employers must have a legally justifiable reason for dismissal. If the cause cannot be proven, the termination may be ruled unfair, triggering liability for severance and compensation.
- Unfair dismissal: Triggers mandatory compensation
- Failure to follow proper process: Also treated as unfair, regardless of underlying cause
- Dismissal during maternity leave: Strictly prohibited and void
Employee Resignation
- May resign without notice
- For fixed-term or task-based contracts, notice is required
Mutual Termination
- Allowed at any time
- Must be in writing, either via official Ministry of Labour forms or before a notary
- Employees cannot waive statutory rights unless formal procedures are followed.
How Acumen International Can Support Your Global Employment in El Salvador
Hiring international talent in El Salvador involves more than signing a contract and processing payroll. It requires navigating complex local regulations, minimising risk, and handling employment compliance with precision.
Here’s how Acumen International can help:
Direct Employment Without a Local Entity
We serve as your Global Employer of Record in El Salvador, legally employing your local and international workforce so you don’t need to establish a legal entity.
Local Compliance, Centrally Managed
From employment contracts to statutory benefits and payroll calculations, we manage all local obligations, while you maintain operational control.
Support for Complex Workforce Models
Whether you’re engaging sales agents, project-based professionals, or non-traditional workers, we tailor employment structures to match your business model without creating compliance risks.
Global Mobility and Immigration Advisory
We help you define compliant options for hiring or relocating foreign workers in El Salvador. Work permit sponsorship requirements are handled through trusted in-country experts.
Global Payroll Calculator Access
Plan your employment budget accurately using our proprietary Global Payroll Calculator, which provides detailed cost estimates for gross-to-net salaries, employer contributions, and statutory charges.
One Partner Across 190+ Countries
Operate in multiple markets with consistency, reduced risk, and strategic control — all through a single point of contact.
If you’re planning to hire in El Salvador or already managing international workers, we can help you simplify the process while remaining fully compliant.