#CostaRica 🇨🇷 #BDS_Reports: Employees Entitled to Paid Leave for Voting
Employees are entitled to a paid leave to exercise their right to vote in popular elections and...
On Friday, April 25, 2025, President Nayib Bukele announced a proposal to increase the minimum wage in El Salvador by 12%. If approved, the adjustment would take effect starting in June 2025.
The proposal was submitted to the National Minimum Wage Council (CNSM), a tripartite body consisting of representatives from the government, workers, and employers, in accordance with the provisions of the Labor Code, which requires a review of the minimum wage every three years.
Background of the Adjustment
The last adjustment to the minimum wage in El Salvador took place in August 2021, when the CNSM approved a 20% increase. This established a wage of $365 per month in the industry, commerce, and services sectors, and a range of $243.46 to $359.16 for other sectors such as agriculture and the textile maquila industry. Since then, the cost of the basic food basket has increased, which justifies the proposed adjustment and would provide relief for workers.
By law, the Salvadoran Labor Code requires the minimum wage to be reviewed every three years, based on the cost of living. As such, this analysis was due in 2024
Details of the Current Proposal
President Bukele’s proposal covers the commerce and services, industry, maquila, agricultural, and coffee and sugarcane harvesting sectors. It calls for a proportional 12% increase across all of them. This would raise the minimum wage in the commerce and services sector from $365 to $408 per month, while the other sectors would adjust their wage scales by the same percentage.
The official announcement was made via a post on the social media platform X, where the President stated: “Today, we have submitted the following proposal to the National Minimum Wage Council.”
Implications for Employers
Employers should anticipate an increase in wage-related costs and overall payroll expenses. It is therefore essential to reassess operational budgets and adjust financial forecasts accordingly, ahead of the implementation date in June 2025.
Under current regulations, failure to comply with the updated minimum wage may result in substantial monetary penalties for noncompliant companies. Consequently, it is advisable to plan proactively for the necessary adjustments to mitigate operational impact.
Our firm will closely monitor developments in this process as the deliberations of the National Minimum Wage Council unfold and will soon provide a detailed analysis of the implications this adjustment will have for employers.
Please contact us should you have any questions regarding this proposed increase. We are available to advise you on these matters.
