The Salvadoran Labor Code does not require either the employer or the employee to provide notice of termination or resignation. The Code only stipulates that notice must be given in writing. The employer may terminate the employee with or without cause. However, without cause, the employer is liable for an indemnity equivalent to 30 days' pay for an indefinite-term full-time employee and at least 15 days' pay for a part-time employee. The calculation is prorated based on the number of hours worked, but in no case less than 15 days. There is an exception for definite period contracts that are task-specific. Employers must give 7 days' notice if the employee has been working for more than 15 days.
If the parties terminate the contract by mutual agreement or if the employer has cause, the form requirement still applies, but the indemnity paid does not. Employees do not owe employers any indemnity for terminating the contract, and the contract will be terminated at the will of the employee without acceptance by the employer, as long as the written requirement is fulfilled.
Foreign nationals who wish to work in El Salvador require work permits as well as residence permits. Foreign employees must obtain authorization from the Ministry of Labor and Social Welfare. Those who wish to work as self-employed individuals can only engage in remunerated or profit-making activities authorized by the General Directorate of Migration. For persons of Central American origin, the General Directorate shall grant work and residence permits.
Permits are issued with a validity of 1 to 2 years, renewable. The total temporary stay cannot exceed 5 years.
When a foreign employee becomes unemployed before the expiration of their work permit, their residence authorization shall not be revoked, nor shall they be considered in an irregular situation; however, they must notify the General Directorate within 8 business days. The employer who has sponsored the foreign national must notify the General Directorate of the termination of employment within 8 business days. They are granted 90 days to find other employment; if they are unable to do so, they are required to leave El Salvador.
According to the Labor Code of El Salvador, employees are eligible for an annual leave of 15 days after 1 year of work with the same employer. The employee must have worked for at least 200 days in the year to qualify for the annual leave.
The employee is entitled to a benefit equal to the ordinary salary plus a 30% surcharge for the duration of the leave. For jobs that include room and board allowance, the annual leave pay rate is increased by an additional 25%. The remuneration for leave must be paid to the employee immediately before its start.
Per the Labor Code, the working time in El Salvador cannot exceed 8 hours in a day or 44 hours in a week. All work done over this limit is considered overtime and must be remunerated at 200% the ordinary salary.
If a job requires the completion of dangerous or unhealthy work during the day, working time cannot exceed 7 hours a day or 39 hours a week. For jobs that require the completion of dangerous or unhealthy work during the night, working hours cannot exceed 6 hours a day or 36 hours a week.
Teleworking is strictly voluntary for both the employee and employer and there must be a written agreement between the parties where the terms and conditions are established.
In El Salvador, employees are entitled to receive up to 16 weeks of paid maternity leave.
The employee must use 10 weeks of maternity leave after the birth of the child. In case of any complications, the leave can be extended in the prenatal period. Employees who have made at least 12 weeks of contributions are eligible for maternity benefits paid by the Social Security System. Maternity benefits are equal to 75% of the employee's basic salary for the duration of maternity leave.
The minimum wage rates vary by sector and entered into force on June 1, 2025.
The rates are as follows:
El Salvador's labor laws do not specify the frequency of wages.
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