May 7, 2025
Hire in El Salvador
El Salvador is a developing country with a middle-income economy. It is the smallest country in Central America and is known as 'Land of the Volcanoes'. It is officially known as the Republic of El Salvador. The economy is ruled by the service sector. The unemployment rate in the country is 6.98% due to the impact of the pandemic.
It is one of the developing economies in the world. The recent Bitcoin law passed made it the first country to adopt cryptocurrency as legal tender. The major industries include agriculture, telecommunication, energy, and manufacturing. It is one of the most industrialized nations in Central America.
Overview of El Salvador
El Salvador has the 103rd largest economy in the world according to the nominal GDP (Gross Domestic Product). The economy is heavily dominated by the service sector with a big share of 59.4%, followed by the Industrial sector with a share of 30% and then the agricultural sector with 10.5%. The service sector employs 58% of the total labor force, followed by the agricultural sector and industrial sector.
Total population – 6,381,991 people
GDP – 33.79 billion USD
Economic overview
The GDP growth reduced by 8.58% and reached a valuation of US $24.64 billion. The rate increased by 4.2%. The unemployment rate of El Salvador reached 6.98%. It is expected to increase in the coming years due to the impact of the pandemic.
Market Size
The economy of El Salvador is ruled by the service sector and employs 58% of the total labor force. The main industries that contribute to the country's economy are agriculture, energy, manufacturing, telecommunications, and finance. Some industries like retail and banking are prominent in certain cities of the country.
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Talk to an expertA brief glimpse of the industries
- One of the major industries that contribute to the economy is the agricultural sector. The main agricultural product includes coffee, sugar cane, maize, coconut, orange, and many other fruits. It contributes to 10% of the country's GDP and employs a certain percentage of the population.
- Tourism is one of the significant industries of El Salvador and contributes to 3.5% of the country's GDP. This sector also opens around 80,500 jobs for job opportunists. The tourism landscape of the country is different from other countries in Central America.
- The telecommunication industry is another important industry of the economy. There are several IT companies in the country that provide job opportunities for enthusiastic people. Passing Bitcoin Law in improved access to financial services.
Cost of living in El Salvador
The cost of living in El Salvador is less expensive than living in most countries in the region. The rent is 67% less than in the US. The living location has a great impact on living as an apartment in the city will cost you considerably higher than one in the suburbs. The following table depicts the average cost of living in El Salvador in 2025.
| Category | Area of expense | Cost estimated |
| Utilities | Electricity, Water, Heating, Internet services, Prepaid mobile tariff | US $103 |
| Rental rates | Apartment (1 room) in city and outside city, Apartment (2-3 rooms) In the city and outside the city. | US $370 US $778 |
| Transportation Cost | One way ticket local transport, Taxi tariff, Gasoline. | US $10 |
| Food and Beverage | Grocery, Vegetables, Meat and Poultry | US $36 |
| Salaries and Financing | Average monthly net salary | US $381 |
Cost of Renting
The cost of renting in El Salvador depends upon various factors like the size of the apartment and the location where it is situated. One bedroom apartment may cost around US $370, and a three-bedroom apartment may cost you around US $778. It will increase if your location is in the city. When the lifestyle is improved, the rate will also be increased.
Cost of living depending upon your location
Mentioned below is the average cost of living across the leading cities of El Salvador.
| Cities | (Cost of living) US $ |
| San Salvador | US $576 |
| Santa Ana | US $329 |
| San Miguel | US $697 |
| S. No. | Top Industries Looking to Hire |
| 1 | Agriculture |
| 2 | Energy |
| 3 | Manufacturing |
| 4 | Telecommunication |
| 5 | Science and Technology |
| 6 | Trade |
| 7 | Tourism |
| 8 | Finance |
Top skills required in El Salvador
The economy of El Salvador is a lower-middle-income economy. It welcomes enthusiastic job seekers with good hard skills and soft skills. There are lots of job openings in the service sector and the industrial sector despite the economy being ruled by the service sector. From technicians to sales agents, there are wide openings for jobs in the country.
- IT
- Marketing and Sales
- Technology
- Telecommunication
- Agriculture
- Tourism (Hospitality)
Top skills city-wise occupation-wise
- San Salvador: - San Salvador is the most populous city and capital city of El Salvador. The city is an important financial centre for Central America. The city also served as a host to several international political, social and sports events. The city's main industries include financial and banking sectors, education, industrial manufacturing, and communication and service sectors. There are job opportunities in this sector.
- Santa Ana: - It is the second-largest city in El Salvador. The main industries of the city are retail and manufacturing. The city is commercially developed with banks, shopping malls and many restaurants. There are openings for jobs in these sectors.
- San Miguel: - The city is situated in eastern El Salvador and is the third-largest city in the country. Agriculture, textile and chemical industries are the major industries of the city. The other industries include health care, commerce, and other private sectors. These sectors open a wide range of job opportunities for expats.
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Talk to an expertHiring Cost
The process of hiring can be cumbersome for employers. The hiring cost involved may depend upon different factors, and the employers should be prepared to cover the cost involved in the hiring process. They are:
- Onboarding and training expenses
- Interview process
- The time involved in the hiring process
Salary structure for various roles
The table below depicts the average salaries that are offered to employees in El Salvador according to different sectors: -
| Jobs | Salary (US $) |
| Operations Manager | US $7,234 |
| Product Manager | US $9,521 |
| IT Manager | US $9,247 |
| Accountant | US $5,518 |
| Data Scientist | US $12,448 |
| Chemical Engineer | US $8,688 |
| Industrial Designer | US $7,542 |
| Software Engineer | US $8,486 |
| Fashion Designer | US $6,961 |
| Content Marketing | US $5,489 |
| Graphic Designer | US $4,716 |
| Executive Assistant | US $6,215 |
| Physician | US $18,794 |
Employment Laws in El Salvador
The employment system is regulated and provides basic rights and benefits to the employees. Each factor may vary depending upon the industry. The Ministry of Labor issues the employment laws in El Salvador on the following aspects: -
- 44 working hours a week
- Overtime pay
- Discrimination protection
- Minimum wage
- Paid and Unpaid leaves
- Bonus and vacation
How Can Skuad Help You with Hiring in El Salvador?
In an extremely competitive market, your primary focus must be to expand your operations and minimize your expenses. Hence, engaging in an expensive and prolonged recruitment process might make you spend more than you ought to. Skuad offers to streamline your hiring process with the help of experienced consultants. Connect with Skuad Experts to know more.
FAQs
How to Hire Employees in El Salvador?
Companies can hire in El Salvador by setting up a local legal entity or by partnering with an Employer of Record (EOR), which handles local compliance, onboarding, payroll, taxes and benefits without requiring you to incorporate locally.
How Can a US Company Pay Its Employees in El Salvador?
A US company can pay employees in Egypt through the following methods:
- Establishing a Local Payroll: By setting up a local entity, the company can process payroll in local payroll, ensuring compliance with local tax and social security regulations.
- Engaging an Employer of Record (EOR): An EOR handles payroll processing, tax withholdings, and compliance on behalf of the company, eliminating the need to establish a local entity.
- Using Global Payroll Providers: These services manage multi-currency payments and ensure compliance with local tax regulations.
What Are the Labor Laws in El Salvador?
El Salvador's labor laws are governed by the Labor Code, which outlines the rights and obligations of employers and employees:
- Working Hours: Standard workweek is 44 hours, with a maximum of 8 hours per day. Night shifts are limited to 39 hours per week.
- Overtime: Overtime is compensated at 200% of the regular wage.
- Leave Entitlements: Annual Leave: 15 days of paid vacation after one year of service, Maternity Leave: 16 weeks, Paternity Leave: 3 days, Sick Leave: Granted based on medical recommendations.
- Resignation: Employees are entitled to 15 days of base salary.
- Termination Without Cause: Employees are entitled to a minimum of 30 days of base salary.
How Much Tax Do Employees Pay in El Salvador?
Employees in El Salvador are subject to progressive income tax rates:
- Up to $4,064: 0%
- $4,064.01 – $9,142.86: 10% on the excess over $4,064
- $9,142.87 – $22,857.14: 20% on the excess over $9,142.86, plus $212.12
- Above $22,857.14: 30% on the excess over $22,857.14, plus $1,428.57
Additionally, employees contribute to social security:
- Social Security (ISSS): 3% of salary, up to a maximum of $30 per month.
- Pension Fund (AFP): 7.25% of salary, up to a maximum of $471.25 per month.
What Is the Minimum Wage in El Salvador?
As of 2025, the minimum wage in El Salvador varies by sector:
- Trade, Services, and Industry: $365 per month
- Maquila (Apparel Assembly): $359 per month
- Agriculture: $243 per month
President Nayib Bukele has proposed a 12% increase in the minimum wage across all sectors, effective June 2025.
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