EOR in El Salvador
Employer of Record in El Salvador
- Save upto 3% on your payroll cost
- Hire Salvadoran talent without establishing a local entity
- Manage payroll, taxes, and statutory compliance seamlessly
- Minimize legal exposure and permanent establishment risks
- Onboard employees quickly with fully compliant contracts
- Cost-effective market entry with transparent pricing
Happy Customers Globally
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Currency
United States Dollar (USD)
Capital
San Salvador
Official Language
Spanish
Payroll Cycle
Biweekly or Monthly
Recognized Globally: Ranked #1 for ‘Ease of Use’ & ‘Customer Support’
our advantage
Why Choose Asanify's Employer of Record in El Salvador
Asanify provides comprehensive EOR services in El Salvador, handling all employment complexities so you can focus on business growth. As a G2 #1 ranked platform across multiple categories, we ensure full compliance with Salvadoran Labor Code, manage payroll in USD, administer mandatory benefits, and provide local HR expertise for seamless workforce management.
Rapid Market Entry
Begin hiring in El Salvador within days instead of spending months establishing a legal entity. Asanify's established infrastructure enables immediate compliant hiring, letting you test the market and scale quickly without substantial upfront investment.
Full Payroll and Tax Compliance
We handle biweekly or monthly payroll processing in USD, calculate and remit income tax withholdings, manage social security (ISSS) and pension (AFP) contributions, and ensure timely compliance with all Ministry of Labor requirements.
Comprehensive Benefits Administration
Asanify manages all mandatory benefits including aguinaldo (Christmas bonus), vacation pay, social security enrollment, pension contributions, and severance calculations. We ensure your Salvadoran employees receive all legally required compensation and benefits.
Local Legal Expertise
Navigate El Salvador's Labor Code confidently with our in-country legal specialists. We stay current with regulatory changes, ensure proper employment documentation, and provide guidance on terminations, disputes, and labor relations to protect your interests.
How Asanify's EOR Simplifies Hiring in El Salvador
Our Employer of Record service in El Salvador provides end-to-end employment solutions, becoming the legal employer while you retain complete management control over your team’s daily activities and responsibilities.
- Labor Code Compliance: All contracts and policies aligned with Salvadoran Labor Code requirements
- Social Security Management: Registration and contributions to ISSS and AFP systems
- Statutory Benefits: Aguinaldo, vacation bonuses, and all mandatory payments administered accurately
Trusted by top companies around the Globe
Employer of record
Employment Compliance in El Salvador
El Salvador’s employment relationships are governed by the Labor Code, which mandates specific working hours (44 hours/week), minimum wage requirements, mandatory bonuses (aguinaldo), vacation entitlements, and social security obligations. Employers must register employees with the Salvadoran Social Security Institute (ISSS) and pension administrators (AFP). Asanify ensures full compliance with Ministry of Labor regulations, proper tax withholding according to the Tax Administration, and accurate calculation of all statutory benefits and termination payments.
- Social security (ISSS) contributions (7.5% employer, 3% employee) and pension (AFP) managed
- Income tax withholding calculated on progressive rates and remitted to Tax Administration
- Aguinaldo (minimum 15 days' salary), vacation bonuses, and severance properly administered
What our happy customers say
Asanify's, should be the number 1 choice for companies looking to pay their overseas employees and contractors. I have a team of 40 people in India and not for a single month have i experienced any delays in the payment process.
In my business, things happen fast, and requirement for new employees is sudden. In such a situation a trusted partner like Asanify comes in handy as I know I can quickly ramp with onboarding and employee formalities diligently taken care of.
As a global company, we go through M&As in countries where we do not have presence. In India, we quickly onboarded ~30 employees as part of a takeover. With Asanify's turnaround time the overall change was managed brilliantly.
Asanify’s expertise when it comes to Local Compliances is something I have benefitted extensively from. Whether its Employee-Contractor classification, or the local laws for employee benefits and working hours - I trust the guidance provided.
Apart from using EOR services, I find a lot of value in the fully automated Asanify HRMS. For me, it makes it absolutely comfortable that I can access all my HR inforation anytime, anywhere and on any platform - Slack, Whatsapp etc.
My employees are in India, while I am based in Dubai and the co. in the US. Managing time zones is a huge challenge for us. Working with global partners like Asanify ensures that all my payments, and query resolutions are done in time.
It is paramount that my employees are well taken care of. Asanify goes above and beyond In terms of employee benefits, salary structuring to make it more tax friendly and constant guidance. For over a year with Asanify’s EOR, I have had no reason to feel disappointed.
Employer of Record FAQs in El Salvador
What is an Employer of Record in El Salvador?
An Employer of Record (EOR) in El Salvador is a registered entity that becomes the legal employer for your workforce, handling all employment contracts, payroll, tax compliance, social security registration, and benefits administration. You maintain operational control while the EOR manages legal and administrative responsibilities under Salvadoran Labor Code.
How quickly can I hire employees in El Salvador using an EOR?
With Asanify’s EOR, you can onboard employees in El Salvador within 3-5 business days. We prepare compliant employment contracts, handle social security registration (ISSS and AFP), and set up payroll, enabling significantly faster hiring than the months required to establish your own Salvadoran entity.
What currency is used for payroll in El Salvador?
El Salvador uses the United States Dollar (USD) as its official currency since 2001, which simplifies international payroll and eliminates currency conversion concerns. Asanify processes all payroll, taxes, and benefits in USD, providing straightforward financial management for international companies.
What is aguinaldo and how is it calculated?
Aguinaldo is a mandatory Christmas bonus in El Salvador, equivalent to at least 15 days’ salary for employees with one year of service (prorated for shorter tenure). It must be paid between December 12-20. Asanify calculates and disburses aguinaldo automatically, ensuring full compliance with this important statutory benefit.
What are the mandatory social security contributions in El Salvador?
El Salvador requires contributions to ISSS (social security): 7.5% employer and 3% employee; and AFP (pension): 7.75% employer and 7.25% employee. Additional contributions include INSAFORP (training, 1% employer) and worker’s compensation insurance. Asanify manages all registrations, calculations, and remittances to ensure compliance.
What is the standard working week in El Salvador?
The standard working week in El Salvador is 44 hours, typically distributed as 8 hours per day over 5.5 days. Daytime work (6 AM – 7 PM) follows this schedule, while night work (7 PM – 6 AM) is limited to 39 hours weekly. Overtime is compensated at 200% of regular wages. Asanify ensures all time-tracking complies with these regulations.
What are employee leave entitlements in El Salvador?
Salvadoran employees are entitled to 15 days of paid annual vacation after one year of service, 11 paid public holidays, paid sick leave (75% salary for up to 52 weeks with ISSS certification), and maternity leave (16 weeks at full salary, paid by ISSS). Asanify administers all leave entitlements accurately.
How are terminations handled in El Salvador?
Terminations in El Salvador require just cause or proper severance payment. For unjustified dismissal, severance includes one month’s salary per year of service (capped at 4 months for indefinite contracts). Notice periods vary by contract type. Asanify manages all termination procedures, severance calculations, and final settlements to ensure legal compliance.
What are the income tax rates in El Salvador?
El Salvador applies progressive income tax rates ranging from 0% to 30% based on annual income brackets. The first $4,064 is tax-exempt, with rates increasing at higher income levels. Asanify calculates all withholdings accurately, files monthly declarations with the Tax Administration, and provides employees with proper tax documentation.
Start Hiring in El Salvador Today
Expand into El Salvador seamlessly with Asanify’s fast, compliant, and cost-effective Employer of Record solution.