Employer in El Salvador

The employer may be an individual or a company. Directors, managers, administrators and caporales can represent the employer in workplace matters. A contractor or subcontractor can remain jointly responsible for labor obligations, and a patrono sustituto continues existing employment relationships and shares responsibility for earlier obligations. A change of employer does not by itself end the contracts; the change must be reported to the Dirección General de Inspección de Trabajo. Formalization begins with registration of the establishment with MTPS. An individual generally provides the form, DUI, NIT, balance sheet and IVA information, plus a Matrícula de Comercio when applicable. The registration should be updated annually. In-person processing can take about 15 minutes, while online processing commonly takes 1 to 3 days. After hiring the first employee, the employer must register with ISSS within 5 days. Registration with the pension system follows ISSS registration and requires at least one pension institution for the workforce. An individual employment contract should be written in three copies. The employer sends the third copy to the Dirección General de Trabajo within 8 days. A missing written contract does not automatically invalidate the employment relationship, but it leaves the employer responsible for the resulting proof and compliance problems. A probation period may last up to 30 days. MTPS contract processing can take up to 20 working days. Recruitment can use the free MTPS Programa Oportunidades and Lunes de Empleo services, which connect employers and applicants directly without an intermediary. For non-Centroamericanos, SIPROMA coordinates the MTPS review with DGME, and the process can take up to 30 working days. The ordinary workforce rule requires at least 90% Salvadoran workers. Employing more than 10% foreign workers requires special MTPS authorization for a difficult-to-replace function and a plan to train Salvadorans for up to 5 years. Pregnancy, HIV status and credit history cannot serve as reasons for hiring or dismissal. The employer pays wages fully and on time in legal currency, supplies necessary materials and tools, and protects workers against mistreatment, sexual harassment, workplace harassment, violence and discrimination. The employer must provide paid leave for public duties, family emergencies and court or administrative proceedings, as well as 3 days of paternity leave. Required seats and the return costs of work-related travel must be provided where applicable. Tips collected for workers must be transferred within 15 days and recorded. Equal pay and advancement apply to women and persons with disabilities. From June 2025, the current ISSS-OVISSS wage table lists monthly minimum wages of $408.80 for commerce, services, industry and sugar mills; $402.26 for maquila; $305.38 for coffee, sugarcane and related categories; and $272.70 for agriculture, fishing and harvesting. An MTPS announcement lists slightly different figures, so payroll should be checked against the current official table before payment. The employer contribution to ISSS is 7.5% and the employee contribution is 3%. Pension contributions total 16%, divided into 8.75% for the employer and 7.25% for the employee. SPU filings are monthly, with 2026 payment dates falling between the 12th and 19th of the following month. Employer contributions amount to at least 16.25% across the stated contribution bases, before applying benefits, ceilings or other applicable items. Normal working time is up to 8 hours per day and 44 hours per week during the day, or 7 hours per day and 39 hours per week at night. Dangerous or unhealthy work has lower limits: 7 hours per day and 39 hours per week during the day, or 6 hours per day and 36 hours per week at night. Workers generally receive one paid rest day each week, usually Sunday. Work on the rest day requires at least a 50% premium and a paid compensatory day. After one year of service, annual leave is 15 days with an additional 30% payment, provided the employee has at least 200 working days. The employer should notify the employee at least 30 days before the leave. The aguinaldo is 15, 19 or 21 daily salaries after 1 to under 3 years, 3 to under 10 years, or at least 10 years of service. Shorter service receives a proportional amount, paid between 20 October and 20 December. A permanent establishment with at least 10 employees must have an internal work regulation, commonly called RIT. DGT approval costs $50 and the response period is 20 working days. The RIT covers working hours, breaks, payment, complaint handling, discipline, medical and hygiene rules, and safety requirements. The employer must publish it within 6 days after approval, and it takes effect 15 days later. A disciplinary suspension is limited to one day per violation unless an inspector grants special authorization for up to 30 days. The employer retains overall responsibility for occupational safety and health. A Programa de Gestión de Prevención de Riesgos Ocupacionales must identify and control risks, map hazards, prepare emergency and evacuation plans, train workers at hiring and after changes in duties or technology, provide first aid, address medical examinations and psychosocial risks, and prevent violence and harassment. The program must be updated annually during the first two months. With fewer than 15 employees, the program remains required and may be replaced by MTPS measures; the stated fee is $100. With at least 15 employees, a Comité de Seguridad y Salud Ocupacional is required, with $100 accreditation and $100 training costs for two four-hour sessions. Accident, illness and dangerous-event records must be confidential and retained for at least 5 years. Serious accidents must be reported immediately through SNNAT. A new risk assessment is required after a new activity, a substantial equipment or organizational change, or an accident. Workers may form trade unions freely. The recognized types include company, industry, occupational, several-company and independent unions, generally requiring at least 35 members. The employer may not interfere with union activity or retaliate against members. A majority union has negotiation and recognition rights, and a union representing at least 51% can request a collective agreement. The agreement must be written and registered with MTPS within 30 days. The employer collects union dues when properly notified. El Salvador has no separately established nationwide works council equivalent in the available evidence; collective agreements, unions and CSSO provide the relevant representation and safety forums. MTPS offers individual and collective conciliation. An application may be verbal or written and should include proof that the employer representative has authority. The stated processing period is up to 20 working days, and virtual conciliation is possible in 2026. In an inspection or sanction procedure, MTPS opens the case, gives up to 10 days for a response and defense, examines evidence, holds the relevant hearing and issues a decision. A violation can lead to a fine of 1 to 12 monthly minimum wages depending on the employer's size, while the underlying duty still has to be performed. Labor courts handle individual disputes and collective legal disputes. A suspension caused by force majeure, a shortage of raw materials or financial problems requires the legal or judicial conditions set by law. Closing an establishment or permanently reducing operations because the business is uneconomic requires labor-court authorization, and the uneconomic condition must generally last at least 3 months. An unjustified dismissal from an indefinite contract can create compensation of 30 daily salaries per year of service, calculated proportionally, with a minimum of 15 daily salaries and a ceiling based on four times the statutory daily minimum wage. At the end of employment, the employer must issue a work certificate stating the start and end dates, job and last wage. Any organizational change also requires a new occupational safety risk assessment.