#ElSalvador 🇸🇻 #BDS_Article: Minimum Wage Adjustment: Key Considerations for Business Management
The recent 12% increase in the minimum wage in El Salvador, effective as of June 1, 2025, presents...
At the end of 2023, an amendment to the Growing Together Act (Ley Crecer Juntos) introduced a new complementary modality for employers to comply with their legal obligation to provide an Early Childhood Care Center (CAPI in Spanish). Under this modality, employers may fulfill their obligation by paying an average CAPI service cost equivalent to the monthly fee charged by the centers selected by employees for the care of their children.
These costs remained in force until July 29, 2025. Consequently, CONAPINA has recently updated the average cost of CAPI services, establishing the following adjusted amounts:
- Enrollment Fee: USD $76.52 (previously USD $72.70)
- Monthly Fee: USD $159.20 (previously USD $151.40)
Employers must ensure that this updated amount is reflected in their internal regulations, which should also set forth the conditions under which such benefit is granted, in order to prevent it from affecting salary differences or the positions held by employees.
It should also be noted that, while the employer determines the modality or modalities through which compliance with the Law will be achieved, employees retain the right to choose, from among the available options, the arrangement for their children’s care, including the above-described option.
Please contact us should you have any questions or need legal assistance regarding this or any other labor-related matters.
