Last updated on: November 6th, 2024
Labor Requirements
The Labor Law for employees in El Salvador is regulated mainly by the Work Code 1972 (last amended in 2023). The acts govern employment terms and conditions such as working hours, rest periods, wages, overtime, public holidays, leave, termination of employment, etc.
Hours & Pay Regulations
Normal Working Hours
An employee’s normal working day shall not exceed 8 hours a day and a normal workweek shall not exceed 44 hours per week (exclusive of overtime).
The day shift is defined as work that takes place between 6:00 a.m. and 7:00 p.m. on the same day
Dangerous Work – In the case of dangerous or unhealthy tasks, the working day will not exceed :
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- 7 hours per day or 39 hours per week, if it is daytime
- 6 hours per day, 36 hours per week, if it is nighttime
In this case, a workday that includes more than 3.5 hours at night will be considered nighttime.
The work day in special cases may be divided into up to three parts included in no more than 12 hours, with prior authorization from the General Director of Labor.
Work that, due to force majeure, such as in the event of a fire, earthquake, or other similar events, has to be carried out over the ordinary working day, will be remunerated only with a basic salary.
The employer will originally set the work schedule, but subsequent modifications will have to be made in agreement with the employees.
Additional Overtime Condition – In a 6 day workweek, an employer and employee can agree upon working 1 extra per day (in the initial 5 days) to make up for the 4 extra hours to be worked on the 6th day, so that the employee can enjoy two consecutive days of rest on saturday and sunday of each week. This 1 extra hour of work shall be paid at overtime premium of 100% on the regular pay. Articles 161,164,165 of the Work Code.
Recording Requirement
Every employer is obliged to keep payment forms or receipts that show, as the case may be :
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- the ordinary and extraordinary salaries earned by each employee
- the ordinary and overtime hours worked during the day or at night;
- and the business days, holidays and rest days on which they work.
The salaries that have been earned in the form of commission and all types of amounts paid will also be recorded. Articles 138 of the Work Code.
Overtime
Overtime work may only be agreed upon occasionally when unforeseen, special, or necessary circumstances occur. Any hours worked beyond the regular working hours shall be considered overtime (8 hours per day and 44 hours per week).
In companies where work is carried out 24 hours a day, the work of 1 overtime hour permanently may be agreed, to be provided during the night shift.
Pay – Employees who perform overtime work shall be entitled to a premium of 100% (double time) on the regular pay. Articles 169-170 of the Work Code.
Night Work
Definition of Night Period – Any hours between 7 pm on one day and 6 am on the next day is considered as night time.
An employee’s nighttime work shall not exceed 7 hours per day and 39 hours per week (exclusive of overtime). A workday with more than 4 hours at night will be considered nighttime.
Pay for Night Work – Work carried out at night will be paid, at least, with a 25% premium over the regular pay.
Pay for Overtime during Night – Overtime work carried out at night will be paid, at least, with a 125% premium on the regular pay. Article 161,168 of the Work Code.
Breaks
An employee shall be entitled to a break for 30 minutes during their workday to eat and rest, and it should be indicated in their respective work schedule. However, when due to the nature of the work they cannot be effective, it will be mandatory for the employer to grant permission to the employee to take their meals, without disturbing the normal course of work. Articles 166 of the Work Code.
Daily Rest
An employee shall be entitled to a rest period of no less than 8 hours between the end of an ordinary day or with the addition of overtime, and the start of the next day. Article 167 of the Work Code.
Weekly Rest
Every employee has the right to 1 day of paid rest for each work week. Employees who do not complete their work week without justified cause on their part will not be entitled to the remuneration.
The weekly day of rest is Sunday. However, employers of companies with continuous work, or those that provide a public service, or those that, due to the nature of their activities, normally work on Sundays, have the authority to provide another day of rest to their employees in the week. Apart from the reasons mentioned, when the need of the company requires it, the employer may provide a day of rest other than Sunday, with the prior approval of the Labor Authorities.
Employees not subject to a schedule will have the right to remuneration for the day of rest, provided that they have worked six days of the week and worked the ordinary day on each of them. Such employees will not lose their remuneration for the day of rest, when for just cause they miss work or do not complete any of the days.
Employees will have the right to enjoy a benefit equivalent to the basic salary on their corresponding day of rest.
Work On Rest Days
Pay for Regular Work on Weekly Rest – Employees who work on their weekly rest days will be entitled to payment of a bonus at the rate of 50% of the regular pay for the hours they work and a day of paid compensatory rest.
The day of compensatory rest will be paid with regular pay and must be granted in the same work week or the following one. The day of compensatory rest will be counted as effective work for the purposes of computing the work week.
Pay for Overtime Work on Weekly Rest – If an employee works overtime on a weekly rest day, they shall be entitled to a premium of 150% on the regular pay.
Pay for Overtime Work During Night on a Weekly Rest – If employee works overtime during night time on a weekly rest they shall be entitled to 175% premium on the regular pay.
Public Holidays
An employee shall be entitled to the following 12 public holidays –
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- New Year’s Day
- Maudy Thursday
- Good Friday
- Easter Saturday
- May Day
- Mother’s Day
- Father’s Day
- Fiestas Patronales (2 days)
- Feast of San Salvador
- Independence Day
- All Soul’s Day
- Christmas Day
Holiday Pay – A public holiday must be remunerated with a basic salary.
Pay for Work on Public Holidays – Employees who work on the public holiday will be entitled to a premium at the rate of 200% on the regular pay.
If a holiday coincides with the weekly rest day, the employee will only have the right to their basic salary. But in case the employee works on said day, they shall be entitled to the 200% premium pay on the basic salary and a corresponding paid compensatory rest.
Pay for Overtime on Public Holidays – Employees who work overtime on a public holiday shall be entitled to a premium of 300% on the regular pay. Article 190-194 of the Work Code.
Annual Leave
Duration of Annual Leave – Employees shall be entitled to 15 days of paid annual leave after one year of continuous work with the same employer.
Any public holiday or weekly rest which falls during annual leave shall be included in the annual leave period, and will not be extended. Annual leave shall not begin on a public holiday or weekly rest. Compensatory weekly rest may not be included within the annual leave period.
The years of continuous work will be counted from the date on which the employee began to provide his services to the employer and will expire on the corresponding date of each of the subsequent years.
To be entitled to annual leaves, the employee must have worked a minimum of 200 days in the year, but does not need to work every day of the week, nor is the employee required to work on each day the maximum number of ordinary hours.
It will be understood that the continuity of work is not interrupted in those cases in which the employment contract is suspended, but the days that the suspension lasts will not be counted as days worked for the purposes of annual leave entitlement.
The employer must indicate the time in which the employee must enjoy the annual leave and notify the employee of the start date, at least 30 days in advance.
The period within which the employee must enjoy the annual leave entitlement will be 4 months if the number of employees in the employer’s service does not exceed 100, and 6 months if the number of employees is greater than 100. Both periods are counted from the date on which the employee completes the year of service.
Pay – Employee shall be paid the ordinary salary corresponding to said period plus 30% thereof. To calculate the remuneration that the employee must receive as vacation benefits, the following will be taken into account:
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- The basic salary earned on the date on which they must be enjoyed when the salary has been stipulated per unit of time; and,
- The basic salary resulting from dividing the ordinary salaries that the employee has earned during the six months before the date on which he must enjoy them, between the number of working days included in said period, in the case of any other form of stipulation of the salary.
The remuneration for annual leave must be paid immediately before the employee begins to enjoy it and will cover all the days that fall between the date on which they go on annual leave and those on which they must return to work.
It is prohibited to compensate annual leave in money or kind. Likewise, it is prohibited to divide or accumulate annual leave periods; and the employer’s obligation to give them corresponds to the employee’s obligation to take them.
The employer may provide that all employees of the company or establishment collectively enjoy, within the same period, the paid annual vacation. In such case, it will not be necessary for the worker to complete the year of service, nor the 200 days.
The employer may also, in agreement with the majority of employees in the company or establishment, divide annual leave into two or more periods within the work year. If there are two, each period must last at least 10 days; and, if there are three or more, 7 days at least.
Termination of Employment – When an employment contract is declared terminated with responsibility for the employer, or when the employee is dismissed without legal cause, they will have the right to be paid the remuneration for the days that, in proportion to the time worked. But if the continuous year of service has already ended, even if the contract ends without liability for the employer, the employer must pay the employee the remuneration to which they are entitled as vacation time. Article 177-187 of the Work Code.
Special Leave
Duration of Sick Leave – Employees shall be entitled to paid sick leave in the following manner –
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- Category 1 – Employees who have one or more years of service are entitled to 60 days of paid sick leave at a rate of 75% of the base salary.
- Category 2 – Employees with at least 5 months but less than 1 year of service are entitled to 40 days of paid sick leave at a rate of 75% of base salary.
- Category 3 – Employees with at least 1 month but less than 5 months of service are entitled to 20 days of paid sick leave at a rate of 75% of base salary.
The term of service referred to above will be counted from the date on which the employee began to provide his services to the employer, and will expire on the corresponding date of the following months or years.
During the continuing period of providing service to the employer, the employee who moves from one category to the other category within the 1st year shall have the right the enjoy 75% of his salary during the days that correspond to him in the category in which he is found, the date of becoming ill, deducting those already enjoyed in the lower categories in that same year.
The employer will not be obliged to pay the sick leave pay of 75% when the reason for the common illness or accident can be attributed to the serious fault of the employee. If the employee’s fault has been proven before a respective Labor Judge, the employer may obtain a refund of the amount already paid and will be removed from the obligation of any future payment. The Judge shall, taking into account the circumstances, determine how the employee shall reimburse the employer the amount that the employer has already paid to the employee.
Any employee who suffers from incapacitating chronic diseases that require frequent medical checks, and rehabilitation or that need specialized technical and medical care, and has prior validation of their attending physician may not be dismissed. Such job stability will begin after the corresponding medical diagnosis has been issued and will be extended for 3 months after the respective medical treatment has been completed. An employer cannot reduce their wages for these reasons.
The Salvadorian Social Security Institute shall be obligated to cover the entire daily subsidy for the disability of the employee with incapacitating chronic diseases that require frequent medical checks, and rehabilitation or that need specialized technical and medical care after validation from the physician, for the duration of treatment as well as time required for recovery. Article 307-308B of the Work Code.
Duration of Leave – An employee shall be entitled to 16 weeks of maternity leave, 10 of which shall be compulsorily taken after the birth. To be eligible for the pay benefit, the employee must have 6 months of continuous employment with the same employer before childbirth. Nevertheless, the employee shall be entitled to maternity leave.
In the case of illness, which, according to a medical certificate, has occurred as a consequence of pregnancy, the employee has the right to supplementary prenatal leave, the duration of which will be determined by regulation.
When the delivery occurs after the presumed date, the rest to be taken before the delivery will be extended until the actual date of delivery, and the postnatal rest period shall not be reduced.
Pay – The employer is obliged to pay 75% of the basic salary to the pregnant worker in advance for the entire duration of the maternity leave. If the employer contributes to the Social Security System, payment for said leave will be borne by the Government.
Medical Certificate – To enjoy the maternity leave, the employee must present the employer with a medical certificate issued on plain paper, which shall state the pregnancy status, the probable date of pregnancy, and the possible delivery date.
If the period of maternity leave has ended, and the employee verifies with a medical certificate that she is not in a position to return to work, the employment contract will continue to be suspended for the time necessary for her recovery, and the employer shall be obliged to pay sickness benefit.
Breastfeeding Break – An employee who has given birth to a child, shall have the right to a breastfeeding break for up to 1 hour daily at their request. The break may be split into 2 breaks of 30 minutes each. An interruption for breastfeeding shall be counted as hours worked and paid accordingly. Article 309-313 of the Work Code.
Employees shall be entitled to 3 days of paid leave for the birth or adoption of a child. The leave shall be granted either continuously or distributed within the first 15 days from the birth of the child at the employee’s choice. In the case of adoptive parents, the period will be counted from the date on which the respective Adoption Sentence becomes final.
Certificate Requirement – The employee must submit a Birth Certificate or Certification of the Adoption Sentence must be presented to enjoy the leave, as the case may be. Article 29 of the Work Code.
In cases where work is interrupted due to unforeseen incidents or force majeure (such as a shortage of raw materials or essential driving forces), the employer may temporarily cease services for a period not exceeding 3 days.
If the consequences of the unforeseen incident or force majeure are attributable to the employer, the employer will be obliged to pay the affected employee the equivalent of the full ordinary salaries that they no longer earn during the interruption. Otherwise, the employer’s obligation will only be to pay the equivalent of 50 percent of said salaries.
If the unforeseen incident or force majeure produces only the reduction of the ordinary working day, the consequences of which are attributable to the employer, the employer will have the obligation to pay the affected employee, in addition to the salary for the time. worked an equivalent amount of pay to what they no longer accrue due to the reduction, regardless of the time the latter lasts.
If the consequences of the unforeseen incident or force majeure are not the fault of the employer, the latter’s obligation will be to pay the affected employee, in addition to the salary for the time worked, an equivalent to fifty percent of what they no longer earn due to the reduction, for up to a maximum period of 3 days. After these, employees will only earn the salary corresponding to the time they work. Article 33-34 of the Work Code.
Employee shall be entitled to paid/unpaid leave for the following reasons –
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- To fulfill public obligations established by law or ordered by a competent authority – The employer must pay the employee a benefit equivalent to the ordinary salary that he would have earned during the time required to fulfill the obligations established by law or ordered by the competent authority.
- Employees shall be entitled to paid leave to fulfill family obligations, such as in the event of death or serious illness of their spouse, their family members (parents, children) as well as when it concerns persons who depend on the employee economically and who appear nominated in the respective employment contract. The duration of leave shall last as long as necessary, but the employer shall be obliged to pay the employee for the leave for 2 days in each calendar month and, in no case, more than 15 days in the same calendar year;
- To enable the employee to carry out the essential tasks in exercising his duties for the necessary time, if he is a director of a professional association, and whenever the respective organization so requests. The duration of such leave is not defined in the law and is not a paid benefit.
- Victim of Violence Leave – Employees shall be entitled to paid leave for any physical or psychological inability of the employee caused by any type of violence they have suffered. This leave must be paid for the duration of the inability mentioned above; and,
- Leave for Judicial and Administrative Proceeding for Victim of Violence – Employees shall be entitled to paid leave to comply with judicial or administrative proceedings or procedures, especially in family matters and in cases of violence against women. In these cases, the leave will be paid for the duration of the procedure or proceeding.
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Article 29 of the Work Code.