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Find out how Remote can guide you through the complexities of managing cross-border hiring, payroll, taxes, and compliance.

Employing in El Salvador

Workers' rights in El Salvador are protected by:

  • The Salvadoran Constitution of 1983,
  • The Civil Code of 1859, and
  • The Labour Code of 1972

— all of which guarantee equal pay for equal work and protections against discrimination based on age, religion, gender expression, and race.

Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in El Salvador.

Minimum wage

In 2025, the minimum wage for El Salvador's commerce and services sector is set at $408.80. Note that skilled workers will generally negotiate their pay on a case-by-case basis, which may often be higher than the national minimum wage.

Paid Overtime

Overtime must be tracked and paid by employers of Salvadoran employees (the employee cannot be compensated via time off in lieu).

Wet Signature Requirement

Please note that Employment Agreements must be physically signed in El Salvador. Documents cannot be signed digitally, they must be signed in wet-ink in the country. The document must be an original, so scanned signatures will not work.

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10 Public holidays

Competitive benefits package in El Salvador

health_insurance
Health Insurance
dental_insurance
Dental Insurance
vision_insurance
Vision Insurance
mental_health_support
Mental health support
pension_or_401(k)
Pension or 401(K)
life_and_disability_insurance
Life and Disability Insurance

Facts & Stats

El Salvador is the smallest and most densely populated Central American nation and it’s known as the land of volcanoes, with frequent earthquakes and volcanic activity.

It has the lowest income inequality in Latin America and doubles as the easiest place to do business in the region.

El Salvador is a strong agricultural economy buoyed by exports of sugarcane, coffee, and over $2.5 billion in textile exports. Lately, it has become even more interesting being the only country to adopt Bitcoin as legal tender in the world.

Capital City
San Salvador
Currency
United States Dollar
Languages
Spanish
Population size
6,420,746
Ease of doing business
Easy
Payroll frequency
Monthly
VAT - standard rate
13%

Grow your team in El Salvador with Remote

Want to employ workers in El Salvador? Companies hiring in El Salvador are typically required to either own a local legal entity or work with a global employment platform like Remote that can legally provide employment services in the country.

Remote can employ team members in El Salvador and keep you compliant. Remote can hire, onboard, and pay your El Salvador team so you don't have to set up local HR services in the region. Remote also makes it easy to pay contractors in El Salvador. Sign up now to get started or talk to an expert for more details.

Risks of misclassification

El Salvador, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in El Salvador may lead to fines and penalties for the offending company.

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Transparent Pricing in El Salvador

Payroll

39

per employee/month
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  • Powerful, transparent international payroll
  • Simple self-service platform
  • Personalised support from dedicated specialists
  • Adhere to local payroll regulations in every country
  • Integrated payroll, expense management, and HRIS solution
Contractor Management

39

per contractor/month
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  • Only pay for contractors you actively work with
  • Work with international contractors
  • Create, edit, and sign tailored, localised contracts
  • Approve contractor invoices with one click or auto-pay
  • Transparent payments with complete visibility
Employer of Record

945 809

per employee/month
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  • Hire without opening a local entity
  • Guided onboarding
  • Local payroll paid on time, every time
  • Built-in security and compliance
  • Flexible, localised benefits
  • Offer equity incentives with tax assistance
  • Dedicated experts for local support
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