#ElSalvador 🇸🇻 #BDS_LaborAlert: 12% Increase to Minimum Wage Approved, Effective June

With this adjustment, the minimum monthly wage for workers in the commerce, services, industrial, and sugar mill sectors is set at $408.80.

However, it must be noted that the applicable statutory deductions will be applied to this amount: 3% for the Salvadoran Social Security Institute (Instituto Salvadoreño del Seguro Social, ISSS) and 7.5% for the Pension Fund Administrator (Administradora de Fondos de Pensiones, AFP). As a result, the net monthly income that these workers will receive will be approximately $366.90.

In the case of the textile maquila and apparel sector, the minimum wage will increase from $359.16 to $402.25, representing a significant improvement. After the mandatory deductions are applied, the net amount to be received by workers in this sector will be $361.02 per month.

For workers engaged in sugarcane harvesting and coffee processing, the minimum wage will increase from $272.66 to $305.77. However, after subtracting the ISSS and AFP contributions, the net monthly wage will be $274.43.

Lastly, agricultural & livestock workers and coffee pickers, who currently earn $243.46, will see their minimum wage increase to $272.67. After the corresponding deductions, their net income will be approximately $244.69.

You may access the full text of the Decree here.

Please contact us if you have questions or require legal assistance regarding the implementation and management of this wage increase.