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Payroll in El Salvador
Payroll in El Salvador runs in USD on a commonly monthly or biweekly cycle, with statutory employer contributions and aguinaldo is mandatory and increases with tenure. Gracemark operates it end-to-end, humans, not tickets.
Currency
USD, United States dollar
Payroll cycle
Commonly monthly or biweekly
Working week
Daytime schedule is generally capped at 44 hours; night work has a lower weekly ceiling
Minimum wage
Set by sector; use the current National Minimum Wage Council schedule for the employee's activity
13th-month
Aguinaldo is mandatory and increases with tenure
Employer cost
Model approximately 15%–16% for core ISSS, pension and training obligations, subject to salary caps and employer profile
Probation
Generally up to 30 days
Notice period
Dismissal without legally sufficient cause can require statutory indemnity and accrued benefits
Two ways to run payroll in El Salvador
Own-entity payroll
For long-term presence in El Salvador. Gracemark manages statutory filings, pay runs, and year-end reporting under your entity, with a named operator on Central America time.
EOR-run payroll
No entity in El Salvador? Employ and pay talent under Gracemark's local infrastructure via EOR, onboard in 2–3 weeks (eor), no local incorporation.
Compliance essentials in El Salvador
- The US dollar is the official currency, no FX risk on pay
- Aguinaldo scales with length of service
- Indemnización severance accrues at ~one month per year
- ISSS plus the AFP pension fund make up employer costs
- Cost-effective, US-time-aligned support and BPO talent
Get a payroll quote for El Salvador
Send your headcount and salary band. We reply with employer burden, net-to-gross, and setup timeline, no sales scripts.
Deeper guide
Hiring guide: El Salvador →
Employ without entity
EOR services →
All countries
Global payroll overview →