Facts About Employee Benefits in El Salvador

Companies must provide employee benefits in El Salvador that are enumerated in the country’s labor law.

Complying with the obligations outlined in the work contract is not all that needs to be done by Salvadoran employees and employers.  It is also the law that companies provide certain, legally prescribed employee benefits in El Salvador.

The on-time payment of wages, fair scheduling, days off, maternity and sickness leave, as well as certain legally defined bonuses, are specifically mentioned in the Salvadoran Labor Code and are monitored by the nation’s Ministry of Labor.

All companies must pay a number of defined employee benefits in El Salvador but are free to offer perks that are beyond those which the government mandates.  These may include things such as shares in the company, extra pay, and discounts on certain products and services.

Below are brief explanations of the employee benefits in El Salvador that should be provided to each worker.

Timely Payment

Payment for employee services rendered can be made weekly, bi-weekly, or monthly.  Employers must provide payroll to all employees on each payday with the remuneration for all regular and extra hours worked, as well as for labor performed during both day and night shifts.

In addition to salary paid for work performed, employee benefits in El Salvador include payment for legally defined vacations and holidays.

Payment of Holidays and Days Off

Under rules outlined for employee benefits in El Salvador, each worker is entitled to 15 days paid vacation after performing twelve months of continuous service.  Prior to the vacation period, employers must pay 15 day’s wages, in addition to 30% of the same amount of time’s wages.    Although a worker may take 15 consecutive days off, he or she may split this amount of time into two or more periods.

Overtime

The day and night shifts in El Salvador are defined by the nation’s labor law.  The day shift takes place between 6:00 a.m. and 7:00 p.m. on the same day, and the night shift is between 7:00 p.m. and 6:00 a.m. of the following day.  Day shift work should not exceed 8 hours a day, while the maximum hours that a night time worker can labor is seven.  The workweek for a day shift laborer should not exceed 44 hours and the night shift laborer is limited to a 39-hour workweek.  Employees also should receive payment for their compulsory day of rest.

Compensation for Dismissal or Resignation

According to employee benefits in El Salvador that are outlined in the country’s labor code, when a worker that has been hired for an indefinite amount of time is dismissed without just cause, the company for which the individual worked must pay an amount equal to thirty days’ salary for each year of services.

When a worker resigns from his or her position, he or she may claim compensation equivalent to 15 days salary for each year worked at the company, with a ceiling of twice the country’s legally defined minimum wage.

Pregnancy Leave

Employee benefits in El Salvador mandate that pregnant women are entitled to sixteen weeks of rest.  Six of these weeks come before birth, while the additional 10 are to be taken subsequent to childbirth.  Also, expecting women are paid 75% of their salary for this period in advance.  The employee must present the written medical record of the pregnancy which must include an estimated due date.

Under employee benefits in El Salvador, workers have the right to return to the same position after pregnancy and birth.

Bonuses

Under El Salvador’s labor code, Christmas bonuses must be paid to workers between the twelfth and twentieth of each December.  Employees that have between 1 and 3 years of service are paid a bonus equivalent to fifteen days’ wages.  Those that have worked from three to ten years are entitled to nineteen days’ pay, while those individuals that have seniority equal to ten or more years receive twenty-one days pay for their Christmas bonus.