EI Salvador
Capital: San Salvador
Currency: US Dollar- USD
El Salvador Labor Law and Employment Policy Overview
Employment Law Overview
- Key Laws and Regulations:
- Labor Code
- Social Security Law
- Workers' Compensation Law
- Legal Characteristics:
- Aims to protect employee rights and promote harmonious labor relations.
- Establishes minimum wages, working hours, vacations, social security, and severance pay, among other matters.
Employment Contract Requirements
- Contract Types:
- Fixed-term contracts
- Indefinite-term contracts
- Contractual Provisions:
- Must include details on job description, compensation, working hours, vacations, social security, and severance pay.
- Language and Currency:
- Contracts must be in Spanish and denominated in US Dollars ($).
Working Hours Regulations
- Standard Working Hours:
- 44 hours per week, distributed over 6 days, 8 hours per day.
- Rest Days and Breaks:
- At least 1 rest day per week.
- 1-hour break after 4 hours of daily work.
Vacation Policy
- Annual Leave:
- Employees with 1 year of service are entitled to 15 days of paid annual leave.
- Public Holidays:
- 13 official public holidays.
- Special Leaves:
- Sick leave: 20-60 days of paid sick leave, depending on years of service.
- Maternity leave: 12 weeks of paid maternity leave for female employees.
- Paternity leave: 2 days of paid paternity leave for male employees.
Employee Severance and Contract Termination
- Notice Period:
- As stipulated in the employment contract or collective bargaining agreement.
- Severance Pay:
- 30 days of salary per year of service, depending on the reason for termination and years of service.
- Protection Against Unfair Dismissal:
- Employees have the right to file a claim for unfair dismissal.
Tax Laws
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Personal Income Tax:
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Salary Range (USD) Tax Rate 0 - 4,064 0% 4,064 - 9,142.86 10% 9,142.86 - 22,857.14 20% 22,857.14+ 30%
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Social Security Contributions:
- Employee: 7.5%
- Employer: 15.25% - 16.25%
Health Insurance
- Insurance Policy:
- The Salvadoran Social Security Institute (ISSS) provides healthcare to employed individuals.
- Coverage:
- Medical, dental, and maternity services.
Compensation and Benefits
- Minimum Wage:
- Varies depending on the type of work, no single fixed minimum wage.
- Compensation Structure:
- Base salary, bonuses, allowances, etc.
Work Permits and Visas
- Permit Requirements:
- Foreign employees require a work permit and visa.
- Application Process:
- Contact the Salvadoran embassy or consulate abroad or the Immigration Office.
Confidentiality and Non-Compete Clauses
- Enforceability:
- Confidentiality and non-compete clauses are enforceable in El Salvador.
- Common Provisions:
- Restricting employees from using or disclosing confidential information after leaving employment.
- Restricting employees from working for competitors after leaving employment.
Training and Development
- Legal Requirements:
- Employers must provide safety training and skills enhancement training to employees.
- Government Support:
- The government provides funding and incentives to encourage corporate training.
Workplace Diversity and Inclusion
- Legal Requirements:
- Prohibits discrimination based on race, gender, religion, or other protected characteristics.
- Enforcement Measures:
- Employers must develop and implement anti-discrimination policies.
Remote Work Policy
- Legal Framework:
- El Salvador does not have specific legal provisions addressing remote work.
- Tax and Insurance Implications:
- Remote work may impact employees' tax and social security obligations.
Authoritative Website Addresses
- Ministry of Labor of El Salvador: https://www.mtps.gob.sv/