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El Salvador, employing more than 2.7 million workers, has an industry-based labor market dominated by sectors such as agriculture, manufacturing, and services.
To safeguard workers' rights and provide reasonable working conditions, the leave policy in El Salvador establishes numerous entitlements such as paid vacation, sick leave, maternity leave, and public holidays. You must abide by these laws to sustain a productive and legally sound work environment.
In this guide, we will discuss how you can comply with statutory leave provisions in El Salvador and utilize Employer of Record (EOR) solutions to simplify compliance.
Earned Leave in El Salvador
El Salvador leave policy obliges you to grant paid vacation leave to your workers who have been with your organization for one year of continuous service. This is awarding them 15 calendar days of paid earned leave annually.
Here's what you need to know:
- Eligibility: Workers are eligible after one year of service.
- Duration: You are obligated to offer 15 calendar days of leave.
- Payment: You must pay their standard salary plus a 30% bonus before the leave starts.
- Carry Forward: Unused leave cannot be carried forward to the following year.
- Cash Compensation: You can't pay employees in cash instead of awarding leave—they must take the time off.
It is also a good practice to include additional compensatory leave under earned leave—instead of paying overtime, you can permit the worker to take a corresponding leave later. Following these rules ensures you have a positive workplace and comply with El Salvador's labor laws.
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Talk to an expertMaternity Leave in El Salvador
You can make suitable provisions to extend pregnancy leave per the following leave policy in El Salvador:
You can also incorporate best practices for maternity leave worldwide and implement them to incentivize and retain the best talents in El Salvador.
Parental Leave in El Salvador
Presently, the laws in El Salvador do not prescribe a separate provision for extra parental leave that either parent may avail of beyond the specified paternity and maternity leaves. However, you can follow global best practices to extend parental leave to retain the best talents.
Paternity Leave in El Salvador
You may extend paid leave for eligible employees as follows:
Adoption Leave in El Salvador
Adoption leave assists employees in transitioning into parenthood by allowing them to provide care and stability to their newly adopted child. Up to 16 weeks of paid leave can be extended to eligible employees who wish to adopt a child.
Public Holidays in El Salvador
Here’s a list of important holidays in El Salvador:
Sick Leave Policy in El Salvador
The sick leave policy in El Salvador is designed to benefit employees in times of sickness, with benefits depending on the length of service. The following is a comprehensive description:
Casual leave in El Salvador
There are no provisions under the labor law for “casual leave" as a special category. You can extend the discussed leave forms such as annual vacation, sick leave, and other specified leaves.
Unpaid Leave in El Salvador
You are not obligated by law to offer unpaid leave since it is not specifically mentioned in the statutory leave policy in El Salvador. Nevertheless, you can offer unpaid leave in mutual agreement with your employees for personal reasons or unexpected situations not addressed by statutory leave provisions.
For instance, you could extend sabbatical leave and bereavement leave for employee welfare.
Easily Navigate the Leave Policy in El Salvador with Skuad
Navigating leave policies in El Salvador—or any other country—can be complicated, especially when statutory labor law provisions are not readily available. You don't need to navigate it on your own with Skuad.
Skuad empowers organizations to:
- Guarantee compliance with leave policies in more than 160 countries
- Onboard new employees promptly and effectively
- Deliver benefits securely on an integrated platform
With Skuad's Employer of Record (EOR) platform, you can onshore full-time staff or independent contractors without opening a local subsidiary. From salaries to compliance issues, we will take care of everything—you can concentrate on building your enterprise.
Book a demo today to get started!
FAQs
What is the notice period in El Salvador?
Interestingly, employers are not obliged to provide an advanced notice period when terminating an employment contract in El Salvador. However, businesses prefer to partner with EOR solutions like Skuad to remain compliant with the finer nuances of labor law compliance.
What are the labor laws in El Salvador?
El Salvador's labor legislation stipulates necessary employee rights and employer responsibilities, such as a 44-hour workweek, overtime pay, 15 days of paid leave per year, and paid national holidays.
Employers must make social security contributions, comply with the minimum wage law, and grant maternity leave (16 weeks at 75% compensation) and sick leave (up to 60 days at 75% compensation). Laws of termination mandate severance pay in certain situations.
How long is maternity leave in El Salvador?
Maternity leave in El Salvador lasts 16 weeks and can be extended case-by-case. Employers can partner with EOR solutions to manage HR compliance and benefits.
What is the average salary in El Salvador?
The reported average wage for El Salvador stands at roughly $42,293 annually, and that is the equivalent of approximately $20 on an hourly basis.
What is the retirement age in El Salvador?
El Salvador retirement age is different for men at 60 years and for women at 55 years. Modern businesses usually switch to EOR solutions for compliance related to statutory employee benefits.
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