Minimum Wages in Elsalvador - Frequently Asked Questions

Is there a separate legislation relating to minimum wages in El Salvador?

El Salvador established in the Constitution (Article 38) that all workers have the right to earn a minimum wage, which is regulated in Articles 144 to 160 of Chapter II, Title III of the current Labour Code.

Do one or more minimum wages exist that is/are determined by law?

Constitution Labour Code.

At what is minimum wage determined at?

The minimum wage is set for all areas of domestic production and is applied throughout El Salvador.

On what basis is minimum wage calculated?

The minimum wage is calculated on a daily basis, which establishes a minimum monthly income.

In case of weekly/monthly minimum age, are they based on any fixed number of hours?

The day workweek cannot exceed 44 hours and 39 nights.

Are governmental bodies, employer and/or trade union representatives involved in minimum wages setting?

Updates fall minimum wage in the National Minimum Wage, which is an agency under the Ministry of Labour and Social Welfare. It is composed of seven members: three representing the public interest, the interest of two workers and two to the employers.

How are upratings (adjustments) of minimum wage decided upon?

The National Minimum Wage Council sets the rates of minimum wages in accordance with the principles underlying Article 145, hearing the opinion of the National Council for Planning and Economic Coordination. Then made the relevant draft decree and subject to approval of the Executive Branch.

Which are the components of minimum wage in El Salvador?

Only Fixed Component.

How frequently is the fixed component of minimum wage updated?

Minimum wages fixed by decree are reviewed at least every three years.

What is/are the yardstick/s on which minimum wage upratings are based?

To set the minimum wage serves the cost of living, the nature of the work, the method of remuneration, the different production areas and other similar criteria. In assessing the cost of living are considered ordinary expenses on food, clothing, housing, education and health protection, an average working family, peasant or urban.

What is National Poverty line?

Click here to know the national poverty line in context with Minimum Wage, living wages and actual wages. Select the currency (Euro or national currency) to know national poverty line.

What is the incidence of minimum wages(s) in the national labour force (wage earners only)?

It is below 85%. The 15% of the formal private sector employees are paid less than the minimum set by law, according to the report "The impact of minimum wages on the labour market of El Salvador" by Fusades in 2010 on data EHPM 2008.

How is minimum wages compliance regulated?

In El Salvador the Constitution imposes on the State the duty of maintaining a technical inspection to ensure the strict compliance with the legal norms of work, attendance, welfare and social security (Art.44), which takes place through the Ministry of Labour and Social Welfare who is responsible for the labour inspection procedure ( the Law on the Organization and Functions of Labour and Social Sector).

Which legal sanctions can be applied in compliance is lacking?

The Inspectorate of Labour fines applying the provisions of art. 628-631 of the Labour Code and the provisions of the Law on the Organization and Functions of Labour and Social Sector.

Are sanctions often being applied?

When the Ministry of Labour inspectors found a violation, the penalties are applied.

Are employer and/or trade union representatives involved in compliance procedures?

The unions are the ones to ensure strict enforcement of contracts and collective agreements to be concluded and the internal labour regulations, and report irregularities that occur in your application. (art. 228).

To whom/Where can individuals complain, if they think they are earning less than minimum wage?

If someone earns less than the minimum wage, an individual may report it to the labour inspectors. As they say in Article 228 of the Labour Code of the union's role to ensure compliance with laws, contracts and collective agreements and internal labour regulations, and report irregularities that occur in your application.