Global PEO and payroll in El Salvador
Navigate complex labour protections and dollarised payroll with no local entity required.
El Salvador offers an increasingly attractive environment for international hiring, particularly for companies seeking cost-effective, nearshore teams in customer service, IT, or field operations. But the local compliance environment is stricter than it looks.
Labour law in El Salvador leans heavily in favour of employee protections: rigid dismissal rules, generous severance formulas, 13th-month bonuses (aguinaldo), and mandatory contributions to social programmes. Add to this a legal system that requires all employment relationships to be fully documented and enforceable in Spanish, and the risks of hiring without proper structures become clear.
Acumen International’s PEO and Global EOR services allow you to hire and pay workers in El Salvador legally, without needing to incorporate or navigate this complexity alone.
What Makes El Salvador Unique for Global Hiring?
- USD-denominated economy: El Salvador uses the US dollar as legal tender, eliminating FX exposure in payroll. But don’t confuse this with US-style labour law—worker protections are far more rigid.
- Strict termination regulations: Employers cannot dismiss employees at will. Without cause recognised by law, severance can reach 30+ weeks of salary.
- Mandatory benefits and reporting: From ISSS and AFP contributions to public holidays and rest-day regulations, everything must be handled to the letter of the law.
- Growing nearshore hub: The country is positioning itself as a nearshore destination for US-based firms, particularly in BPO, fintech, and remote IT services.
How Our PEO and EOR Services Work in El Salvador
- We act as your legal employer in El Salvador. You select the talent, manage the work—they are legally employed through our local infrastructure.
- We run full payroll and benefits administration, ensuring every payslip, tax filing, and contribution is accurate and compliant.
- We manage contract execution and termination, aligning every hire with local labour codes and language requirements.
- We support work permit processes for non-Salvadoran hires if needed, although most employment is local.
This allows you to hire quickly, operate safely, and exit cleanly without setting up a subsidiary or navigating local risk alone.
When to Use Global PEO and EOR in El Salvador
- To explore a nearshore service model without committing to infrastructure
- To scale technical support, BPO, or IT delivery teams in a cost-effective jurisdiction
- To hire quickly for regional field operations with guaranteed legal coverage
- To regularise existing freelancers or mitigate exposure from informal engagements
- To fulfil grant- or donor-funded employment for development and NGO projects
What You Get With Acumen in El Salvador
Legal Employment
We provide enforceable, locally compliant employment contracts in Spanish, registered with the relevant Salvadoran institutions.
Payroll and Contributions
We manage payslips, withholding for income tax (ISR), social contributions (ISSS, AFP), and all employer obligations—delivered as a single monthly invoice.
Labour Risk Protection
We ensure that terminations, leave, bonuses, and working hours all comply with the Salvadoran Labour Code, protecting you from claims or penalties.
No FX Risk
All payroll is handled in USD, reducing volatility for global finance teams and simplifying cross-border reconciliation.
Work Permit Support (if applicable)
For non-citizen hires, we coordinate required steps with immigration authorities and ensure proper employer sponsorship.
Acumen International: A Reliable Partner for Compliant Hiring in El Salvador
Our service is not just payroll. We provide:
Strategic Employment Structuring
Role-specific setup that reflects local nuances and your business goals.
Full-Scope Payroll and Reporting
All legal deductions, filings, and end-of-year declarations are handled by us.
Advisory on Workforce Transitions
Whether converting a contractor or absorbing a legacy team, we help structure the transition in a clean and compliant manner.
Oversight and Control
We shield your business from local missteps while giving you full visibility into your Salvadoran workforce.
Looking to scale operations in El Salvador without legal risk?
Speak with Acumen International about compliant hiring, payroll, and exit strategies in the region.