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El Salvador

How to Hire Workers in El Salvador | Employer of Record (EOR) in El Salvador

Navigating the labor laws and regulations of El Salvador is made easy with our EOR services. We handle all aspects of local employment, ensuring compliance and smooth operations for your business. From payroll to benefits, our team provides comprehensive support tailored to meet the unique needs of your business in El Salvador. Expand into the Salvadoran market with confidence, knowing that you have a reliable partner managing your international employment needs.

 

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El Salvador, with its warm climate, beautiful beaches, and rich culture, is an attractive destination for businesses looking to expand internationally. TCWGlobal serves as your trusted partner in navigating the complexities of hiring in El Salvador, offering comprehensive solutions for building your contingent workforce.

With a population of over 6.5 million people, El Salvador boasts a young and dynamic workforce. From the historic streets of San Salvador to the stunning beaches of Costa del Sol, the country offers a unique blend of culture and natural beauty.

When expanding your business into El Salvador, compliance with local regulations is essential. TCWGlobal, as your employer of record, ensures that your contingent workforce is fully compliant, reducing risks for your organization.

In addition to compliance, TCWGlobal provides personalized services tailored to your specific needs. Whether you require assistance with payrolling management, benefits administration, or any other aspect of HR, our team is committed to supporting you.

Partnering with TCWGlobal guarantees a seamless and successful expansion into El Salvador. Our expertise and local knowledge make us the ideal partner for businesses looking to establish a contingent workforce in this dynamic market.
Worker Classifications

There are no official subcategories of Workers in El Salvador.

Fixed-Term Contracts

​Fixed-term contracts are permitted in El Salvador but should state the duration of the work and the reason that it is fixed (e.g. the work is for a set project, to temporarily replace a Worker on maternity leave, etc.). They can be for a period of days, several months, or years depending on the need. If the contract is renewed, it may be deemed an indefinite contract.

Probationary Periods

Probationary periods are permitted in El Salvador and are usually no more than 30 days long. No notice or rationale is required to terminate during the probationary period. If the contract is not terminated during the probationary period, it is automatically deemed indefinite.

Holidays

Workers recognize 11 public holidays. After 60 days of service, Workers are entitled to a day off with double pay for each holiday. If a Worker is required to work on a holiday, they are entitled to a different paid day off in lieu within 30 days.

Vacation

After one year of service, Workers are generally entitled to 15 days of leave per year paid at 130%. The leave may be taken consecutively or split into multiple periods. It does not automatically carry over year to year. Accrued but unused vacation is payable at the end of employment.

Sick Leave

Workers are entitled to up to 26 weeks of paid sick leave (one year if the employee has a disability). The first three days are paid by the employer and the remainder by social security.

Working Hours

A standard workweek is 44 hours over six days. Workers typically work five days of eight hours and four hours on the sixth day.

Overtime

Overtime is unlimited in most cases but must be paid at 200%.

Mandatory Bonuses

A bonus in December is required and referred to as a “Christmas bonus.” Workers with one to three years of service generally receive 15 days of wages. Workers with three to ten years of service generally receive 19 days of wages. Workers with a longer length of service generally receive 21 days of wages.

Termination

No notice is required to terminate a Worker, but the employer must provide a written letter stating the “potentially fair” reason for the termination or it is considered void. If the dismissal is unjustified, severance may be due equal to 30 days’ salary for each year worked.

Resignation

Workers that have worked for at least two years and provide at least 15 days’ advanced notice of resignation may be entitled to compensation equal to 15 days’ salary for each year of service subject to statutory caps and a proportionate amount of vacation and Christmas bonus. 

Unique Country Nuances

The government may announce new public holidays at any time, often with short notice.

How an EOR Can Help You Win Fast

TCWGlobal stands unmatched as the leading employer of record service provider. Our global reach, expertise in diverse industries, and commitment to client satisfaction makes us the best choice. Looking for a global employer of record or international payrolling partner that will work with you and not for you? Trust TCWGlobal. We are here for you.

Common Pitfalls in Choosing an EOR

When choosing an Employer of Record (EOR) service, people often make mistakes such as overlooking compliance, global reach, technology integration, company experience, and fee transparency. Watch this video to see what to consider when picking an EOR.