Hire in El Salvador

El Salvador PEO &

Employer of Record

Hire & manage teams remotely in El Salvador without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.

Business Language

Spanish

Salary Currency

US Dollar / Bitcoin

Capital city

San Salvador

Time zone

UTC -6

EOR in El Salvador

from $375/ month

Hire Employees in El Salvador

NNRoad provides professional employment organization (PEO) & employer of record (EOR) services in El Salvador to ensure that your business complies with local labor laws and regulations. We process monthly payroll and act as the Employer of Record, taking on all local employer liabilities.

Fast Hiring

Start working with your remote employees in a week.

Foreigner Visas

NNRoad assists with overseas foreign hires visa needs.

Platform

Access your payroll reports on our portal.

Employer of Record in El Salvador

Employer of Record (EOR) services are for companies who do not have a legal entity in El Salvador, but who want to hire localy. Employment and full liability are outsourced to NNRoad.

1. Candidate Selection

Select the candidates you want to hire in El Salvador.

2. Employee Onboarding

We sign a local labor contract with your employees based in El Salvador.

3. Compliance & Payroll

We manage monthly payroll, mandatory benefits & all HR compliance in El Salvador.

EOR service includes:

Hiring and termination of employees/local labor contracts (contract administration – engagement, extension termination and conversion to permanent hire).

All mandatory employer (and employee) contributions filed and paid for your EOR employees.

Payroll recording, reporting and administration.

Distribution of salaries to employees through direct deposit into their bank accounts.

Calculation, reporting, filing and processing of EOR employee’s individual income tax due.

Collecting and processing your employee’s invoices for business related expenses.

Guiding and organizing your expat employee’s work visa application too guarantee their successful onboarding.

Standalone Payroll & PEO in El Salvador

Professional Employment Organization (PEO) services are for companies who have a legal entity in El Salvador, and want to outsource their payroll. Employment liabilities are shared between your organization and NNRoad.

Employee Income Taxes:

Individual income tax rates in El Salvador are based on progressive tax brackets.

In El Salvador, the income tax system is administrative, where the employer is responsible for calculating, withholding, and remitting the employee’s income tax to the government. This system reduces the tax filing burden on employees, as they do not need to declare their income tax directly.

Tax Brackets:

Sample Calculation

Employer Contribution

Employers in El Salvador are required to contribute to various social security benefits. These include:

Pension and retirement funds: 7.5% of the employee’s salary.
Health insurance: 7.75%.

Employee Contribution

Employees in El Salvador also make mandatory contributions from their salaries, which include:

Pension funds: 3%.
Health insurance: 2.25%.

Social Security

Social Security in El Salvador covers healthcare, pension, and disability benefits, supported by contributions from both employers and employees, ensuring a safety net for workers.

Pension Fund

Both employers and employees contribute to the pension fund, which is vital for securing financial stability for workers post-retirement.

Healthcare Insurance

Contributions to healthcare insurance by both employers and employees ensure access to medical services, safeguarding employee health and wellbeing.

Working Hours Per Week

The standard work week in El Salvador consists of 44 hours, typically distributed over six days from Monday to Saturday. The legal working hours are regulated to ensure adequate rest and work-life balance for employees.

Overtime

Overtime in El Salvador is paid at a rate of 100% above the regular hourly rate for any hours worked beyond the standard weekly hours. This rate increases to 200% for work done on Sundays and public holidays.

Employers in El Salvador can legally terminate employment for reasons including, but not limited to, misconduct, poor performance, or economic necessity. The legal framework for termination is designed to ensure fairness and proper notice.

Severance

In case of termination without cause, employees are entitled to receive severance pay, which is typically calculated based on the years of service, providing financial support during the transition.

Notice Period

Employers are required to give at least 30 days of notice before termination, while employees must give 15 days notice if they decide to resign.

Employment Contract

Labor contracts in El Salvador must clearly state terms including job responsibilities, salary, benefits, working hours, and termination conditions. This clarity helps prevent disputes and ensures mutual understanding.

Probation Period

The maximum legal probation period allowed in El Salvador is typically up to three months, during which both parties assess the suitability of the employment relationship.

Annual Leave

Employees are entitled to 15 days of paid annual leave after one year of continuous service.

Sick Leave

Employees are allowed to take sick leave, with the employer covering the salary for up to 26 weeks, ensuring support during health-related absences.

Maternity Leave

Maternity leave in El Salvador is 12 weeks, fully paid, promoting the health and welfare of both mother and child.

Paternity Leave

Fathers are entitled to 3 days of paid paternity leave, allowing them to support their families during this important time.

Public Holidays

  • January 1: New Year’s Day
  • March 8: International Women’s Day
  • Good Friday (date varies)
  • May 1: Labor Day
  • August 6: Salvadoran Armed Forces Day
  • September 15: Independence Day
  • November 2: All Souls’ Day
  • December 25: Christmas Day
  • Resources

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