Statutory and legislative payroll changes in El Salvador, each linked to the page it was checked against. For information only, not legal or tax advice: confirm details with the source before acting. See the terms.
Minimum wage rises 12% across all sectors
Effective 1 Jun 2025
El Salvador raised the minimum wage by 12% from 1 June 2025, with rates set by decree for agriculture, industry, commerce, services, and textile and apparel manufacturing.
For the employer
- Apply the 12% higher minimum wage for the relevant sector from 1 June 2025.
For the employee
- Minimum wage workers receive a 12% increase from 1 June 2025.
Source: Diario El Mundo - El salario mínimo por sector económico a partir del 1 de junio · Last verified 1 October 2026
ISSS (social security) and AFP (pension) contribution rates
Current rates
ISSS social security contributions are 3% (employee) and 7.5% (employer) on salaries up to USD 1,000/month, capped at USD 30 and USD 75 respectively for higher salaries. AFP pension contributions are 7.25% (employee) and 8.75% (employer).
For the employer
- ISSS: 7.5% of salary, maximum USD 75/month per employee.
- AFP: 8.75% of salary.
- Withhold employee ISSS (3%, max USD 30) and AFP (7.25%) and remit them monthly.
For the employee
- ISSS: 3% of salary, maximum USD 30/month.
- AFP: 7.25% of salary.
In practice: On a USD 1,500 monthly salary: ISSS employee USD 30, employer USD 75; AFP employee USD 108.75, employer USD 131.25. Totals: employee USD 138.75, employer USD 206.25.
Source: PwC Worldwide Tax Summaries - El Salvador, Individual - Other taxes · Last verified 1 October 2026