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Employer of Record El Salvador

Hire staff and expand your business in El Salvador with our fully-managed EOR Service

How we can help

Unrivalled Employer of Record Service in El Salvador designed to expand your business seamlessly

Agility EOR delivers services for business’s looking for an Employer of Record in El Salvador. We help clients hire new employees or transfer existing employees into a fully-managed EOR service.

We appreciate that each situation and business is different. That is why our personal approach to Employer of Record Services in El Salvador takes care of all HR, payroll, recruitment and compliance head aches, and allows you to do what you love best – driving your business forward.

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Employer of Record in El Salvador

A Brief Guide to El Salvador

El Salvador, the smallest and the most densely populated country in Central America, is known for its breathtaking landscapes of volcanoes, beaches, and Mayan ruins. It might be tiny on the map, but the opportunities for business expansion are broad and diverse.




Central America

Capital City

San Salvador

Official Language



21,041 km²


Approx. 6.5 million


U.S. Dollar (USD)

Major Cities

Santa Ana, San Miguel, Soyapango


Approx. $27 billion

Major Industries

Food processing, beverages, petroleum, chemicals, fertilizer, textiles, furniture, light metals

Business Culture

Business Culture in El Salvador

In El Salvador, business is all about personal relationships. The value of trust and rapport shouldn’t be underestimated when considering business collaborations or employment. Meetings might not always start on time due to the slower pace of life, but punctuality is a respected trait. The business attire is usually conservative, with due respect given to hierarchy and seniority.

Employer of Record El Salvador
Payroll and Taxes

Payroll and Taxes in El Salvador

In El Salvador employees are paid a 13th month salary after a year of service with their employer. The amount is between 15 and 21 days of salary, rising in line with the length of service, and is usually paid in December.

Employee Taxation

In El Salvador, income tax rates are progressive, with higher income levels subject to higher tax rates.

Gross Annual Salary (USD)

Tax Rate (%)

Up to $4,064


$4,064.01 – $9,142.86

10% + $212.12

$9,142.87 – $22,857.14  

20% + $720


30% + $3462.86

Employer Taxation

Employers in El Salvador are also responsible for various employer costs, which may include:

Fund Type


Social Security (ISSS)

7.5% (monthly taxable salary capped at $1,000)

Death & Pension Fund (AFP)

8.75% (monthly taxable salary capped at $7,045.06)

INSAFORP Vocational Training Levy (for employers with over 10 employees)

1% (monthly taxable salary capped at 1%)

Pension and Healthcare

El Salvador Pensions

In El Salvador, pensions are primarily managed by private pension fund administrators known as AFPs. The system operates on a defined contribution basis, with employers and employees contributing a specified percentage of salary into the fund. The government does provide a minimal pension for those in extreme poverty or those who haven’t contributed enough to qualify for a private pension. 

Healthcare in El Salvador

El Salvador’s healthcare system consists of a mixture of public and private providers. The Ministry of Health provides public healthcare services, funded by general taxes, offering universal coverage with a focus on preventive care. These services are accessible but can be stretched due to high demand and resource constraints, leading to long wait times.

On the other hand, private healthcare facilities, typically centered in urban areas, offer faster access to specialists and advanced treatments but at a higher cost. Private healthcare is often utilized by those who can afford it or those with private health insurance. Overall, the quality of care can vary, with the private sector generally offering higher standards of service and facilities than the public sector.

Employer of Record El Salvador
Employment Law

Employment Law in El Salvador

Relevant Legislation: The main legislation governing employment law in El Salvador is the Labor Code (Codigo de Trabajo). This comprehensive code outlines all matters relating to employment, including working hours, leave, contracts, termination, and other related issues.

Employment Contracts: Employment contracts in El Salvador can be either written or verbal. However, for clarity and protection of both parties, written contracts are recommended. They typically specify the terms and conditions of employment, including the role, remuneration, working hours, and leave entitlements.

Working Hours: The standard working week in El Salvador is 44 hours, typically spread over 5.5 days, with Sunday being a mandatory day off. The Labor Code establishes a maximum of 8 hours per day for day workers and 7 hours for night workers.

Leave: Employees in El Salvador are entitled to annual leave after a year of continuous service. The Labor Code grants 15 days of paid vacation for every year of service. Also, the country observes several paid public holidays.

Overtime: Overtime is defined as any work beyond the standard 44-hour work week. Legally, overtime should not exceed 12 hours per week. It is usually compensated at a rate of 100% above the standard wage for every extra hour worked.

Termination: An employer can terminate an employee for a variety of reasons as outlined in the Labor Code, which may include misconduct, poor performance, or economic necessity. Both the employer and employee are required to comply with the termination procedures set out in the Labor Code.

Notice: In cases of termination for cause, no notice period is required. However, in instances of redundancy or no fault terminations, employers are generally required to give 30 days’ notice or pay in lieu of notice.

Severance Pay: Upon termination of the employment relationship, unless it’s for just cause, employees are usually entitled to receive severance pay. The amount is typically calculated based on the length of service, with the Labor Code providing clear guidelines on the calculations.


Work Permits in El Salvador

Immigration in El Salvador is administered by the General Directorate of Migration and Foreigners. The system is structured to manage and regulate the entry, stay, and exit of foreigners. The immigration procedures can vary depending on the country of origin, the purpose of visit, and the duration of stay.

For people looking to work in El Salvador, the most common visa types include the Temporary Resident Visa and the Permanent Resident Visa. Temporary Resident Visas are often granted to individuals who intend to reside in the country for a certain period, typically for work purposes. A Permanent Resident Visa is for those who intend to make El Salvador their home indefinitely.

Employer of Record El Salvador
Public Holidays

El Salvador Public Holidays



New Year’s Day

January 1

Day of the Cross

May 3

Labor Day

May 1

San Salvador Day

August 5-6

Independence Day

September 15

All Saints’ Day

November 1

Christmas Day

December 25

Day of the Soldier

May 7

Teacher’s Day

June 22

Children’s Day

October 1

Columbus Day

October 12

Army Day

November 21

Constitution Day

December 15


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The Benefits

El Salvador Employer of Record Benefits

When you choose Agility EOR to expand in El Salvador, we guarantee an Employer of Record Service tailored to the needs of your business


We are on top of regulatory changes in El Salvador so you can relax.

Cost reduction

Allow our economies of scale to work in your favour.

High Service Levels

You and your employees have a dedicated account manager.

Fixed Cost Pricing

We will agree our professional fees up front based on your needs - no nasty surprises!

Consolidated Invoicing & Payments

Make one monthly payment to cover all your tax, social and wages costs from one to one thousand employees.

Fast delivery

You can have 'boots on the ground' within days on our infrastructure.

Reduced Risk

All wage taxes are remitted in full to the El Salvadorian authorities by professionals ensuring liabilities are met, giving you peace of mind.

Supply Chain Transparency

We only pay employees through local full employed solutions meaning El Salvador payroll tax is paid on all funds.

Save Time and Money

Our expertise is at your disposal. The need for you to have internal HR, Payroll and admin staff is eliminated.

Without Agility EOR, our ability to move quickly and scale would be extremely limited. Superb work from A to Z.

Carol Oliveira