El Salvador

Employment taxes

• Income Tax:
• Up to $4,064.00/year - 0%
• $4,064.01 – $9,142.86/year - 10%
• $9,142.87 – $22,857.14/year - 20%
• Over $22,857.14/year - 30%
• Social security contributions:
• Employee: 7.25% (ISSS and AFP combined)
• Employer: 16.25%

Leave policy

• Vacation: 15 paid days after 6 months of service
• Sick leave: Up to 52 weeks. Frist 3 days are fully paid by the employer, from there on covers the social securityr at 75% of salary.
• Maternity leave: 16 weeks (6 weeks before birth, 10 after), paid at 75%
• Paternity leave: 3 days paid
• Parental leave: No separate law, but some employers offer flexibility.

Employment termination

• Notice period: Usually 30 days
• Severance: 1 month’s salary per year of service if terminated without cause
• Probation period: Up to 30 days

Hiring and contract

• Contracts should be in Spanish (or bilingual) and in writing, signed by both parties
• Common types: Indefinite, fixed-term, or project-based.
• Employment agreements should outline salary, working hours, and benefits.

Payroll and salary payments

• National minimum wage: $182.50 per month
• Pay cycles: Bi-weekly or monthly.
• 13th-month bonus: Mandatory, usually paid in December.

Benefits

Mandatory:

• Social Security (ISSS)
• Pension (AFP system)
• Paid leave and holidays

Optional:

• Health insurance
• Meal allowances
• Transportation stipends

Monthly living costs (San Salvador Edition)

• Rent (1-bedroom in city center): $400–$600
• Utilities: $70–$100
• Groceries: $200–$300
• Dining out: $10–$15 per meal
• Public transport: $15–$20/month
• Internet: $40/month

Total monthly budget: $800–$1,200 for a comfortable lifestyle.

How to get a local ID number

• Every employee and resident needs a Número de Identificación Tributaria (NIT) for taxes.
• Apply at the local Ministerio de Hacienda office with your passport, visa, and proof of residence.

Social security contributions

• Employers must register employees with the ISSS (Instituto Salvadoreño del Seguro Social) and the AFP pension system.
• Remote workers typically handle this via their employer or through an Employer of Record.

Banking

Popular banks include:

• Banco Agrícola
• Banco Cuscatlán
• Davivienda

To open an account: Bring your NIT, passport, and proof of residence.

Housing and rental process

• Most leases require a security deposit (1 month) + first month’s rent.
• Tenant rights: You’re protected against arbitrary eviction and have the right to a habitable property.
• Tip: Get everything in writing and double-check if utilities are included.

Healthcare system

• Public system via ISSS for employed workers.
• Many expats and locals prefer private healthcare that is affordable compared to the U.S.
• Overall, the system ensures you’re covered for standard medical needs, but private options can make care more convenient.

Driving and public transport

• Public buses and minibuses are cheap ($0.25–$0.35), but can be crowded.
• Taxis and ride-hailing apps like Uber and InDriver are popular.
• Driving? You can use your foreign license for up to 90 days. After that, you need a local one.

Emergency and important contacts

• Police: 911
• Ambulance: 132
• Fire Department: 913
• Tourist Assistance: 2224-2704

Work permit and visa requirements

• All foreign citizens need a tourist visa on arrival (up to 90 days). For work, apply for a temporary residence and work permit.
• Documents: Passport, employment contract, proof of income, background check.

Business culture and work norms

• Hierarchy matters: Respect seniority and titles.
• Face-to-face is key: Salvadorans value personal interaction over email for building trust.
• Politeness wins: Start meetings with small talk, family and health are common topics.