El Salvador
The employee benefits landscape in El Salvador varies depending on the company and the labor sector. In general, employers must provide minimum benefits established by law, including health benefits, paid vacation, Christmas bonuses, and Social Security. However, some companies offer additional benefits to attract and retain talent, and it is essential to note that not all companies in El Salvador provide additional benefits and that the availability and scope of these benefits can vary widely. Some larger multinational companies tend to offer a broader range of benefits, while small and medium-sized businesses may have fewer resources to provide them.
Country Insight
Mandatory Benefits
Employers in El Salvador must provide certain employee benefits to comply with current labor law. Meeting these requirements is essential to ensure the welfare and protection of workers.
- Registration at the Salvadoran Social Security Institute (ISSS) – The employer and employee must register with the ISSS.
- Presentation and payment of ISSS forms – The employer must submit monthly, through the OVISSS platform, employees’ salaries, overtime, and vacations for the respective payment of their contributions.
- Registration in AFP Crecer and AFP Confia – Employers and employees must be affiliated with a pension fund administrator. Each party can choose their administrator for their contributions and savings management.
- Payment of pension contributions – Employers and employees must pay contributions under the Pension Savings System Act. The contribution rate goes up to 13% of the contribution base income. Of the total, 10.3% will go to the affiliate’s individual savings account for pensions, with a contribution of 6.25% from the worker and 4.05% from the employer.
- Working holidays – Employees have the right to a paid rest period after working continuously for one year in the same company or establishment. Male and female workers are entitled to a holiday period of fifteen days. During this time, they will receive the basic salary corresponding to those days, plus an additional 30%.
- Aid in case of death of the worker – Employers must immediately give dependents (in the order listed in the contract) an amount equivalent to 60 days of basic salary.
- Paid Time Off – El Salvador has a variety of mandatory leaves, including for sickness or common accidents, maternity, paternity, studies, bereavement, and marriage.
- Pension – Employers and workers pay contributions under the Pension Savings System Act. The contribution rate is up to 13% of the contribution base income. Of the total, 10.3% goes to the affiliate’s individual savings account for pensions, with a contribution of 6.25% from the worker and 4.05% from the employer.
Supplementary Benefits
In El Salvador, many employers go beyond the benefits established by law to retain their employees and create a positive work environment. They include the following:
- Medical and dental insurance – Some companies offer private health insurance to employees, providing access to health care services in addition to those offered by public institutions. The plans are personalized and cover everything from check-ups to complex procedures.
- Life and disability insurance – Costs vary depending on employees’ age, medical history, and health status.
- Auto insurance – Some employers pay a percentage of the premium, easing the financial burden on the employee and providing safety and peace of mind in the event of accidents.
- Relocation costs
- A flexible schedule or working from home
- Additional vacation days
- Professional development
- Performance bonuses
- Wellness programs
- Shopping discounts
This information about employee benefits in El Salvador is provided by BeSafe, Asinta’s Partner in the country. If you need support with your employee benefits in El Salvador, contact Asinta, and we will put you in touch with the experts at BeSafe.