El Salvador has more than 6 million people, with tourism, agriculture, and manufacturing leading the economy. There are many types of company formations allowed in El Salvador, and the corporate tax rate is 30%.


Some labor and payroll considerations in El Salvador include:

  • Minimum wage varies by industry. In retail, the minimum wage is $242 USD per month, but for industrial work, the minimum wage is $237 per month
  • Income tax, local taxes, and social security contributions are withheld from employee pay
  • Employers must contribute to social security
  • Foreign workers need a work permit and temporary residence permit

To get started in El Salvador, or simplify operations there, Blue Marble has created a cloud-based payroll platform with customized reporting to manage your payroll in El Salvador. Click here to learn more about easy-to-use payroll solutions from Blue Marble.