El Salvador

[Update 7/24/25] The employee benefits landscape in El Salvador varies depending on the company and the labor sector. Generally, employers are required to 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. It is essential to note that not all companies in El Salvador provide these benefits, and the availability and scope of 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.

Asinta Partner
Agueda Salguero

Be Safe

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Mandatory Benefits

Employers in El Salvador are required to provide specific employee benefits in order to comply with current labor laws. 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 employees’ salaries, overtime, and vacations monthly through the OVISSS platform 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 its administrator to manage its contributions and savings.
  • Payment of pension contributions – Employers and employees are required to 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 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 the worker’s death – Employers must immediately provide dependents (in the order listed in the contract) with an amount equivalent to 60 days of the worker’s 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 savings account for pensions, with a contribution of 6.25% from the worker and 4.05% from the employer. In 2025, digital processes for Social Security and Pension registration continue to expand, streamlining employer compliance.

 

Supplementary Benefits

In El Salvador, many employers exceed the benefits mandated by law to retain their employees and foster 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 employees and providing safety and peace of mind in the event of an accident.
  • Relocation costs: Increasingly offered in 2025 by companies hiring international and remote talent.
  • A flexible schedule or working from home
  • Additional vacation days
  • Professional development
  • Performance bonuses
  • Wellness programs are increasingly popular in 2025, encompassing fitness, nutrition, and mental well-being.
  • Shopping discounts
  • Some employers introduced on-demand pay options in 2025 to improve workforce satisfaction and retention.

 

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.

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