The National Council of Minimum Wage of El Salvador, approved on July 6, 2021, an increase to the minimum wage, effective from August. The workers benefiting from this measure will be from the commerce sectors; services; industry; textile and clothing maquila; agricultural sector; coffee benefits; harvesting of sugar cane and sugar mills.
The National Council of Minimum Wage of El Salvador, approved on July 6, 2021, an increase to the minimum wage, effective from August. The workers benefiting from this measure will be from the commerce sectors; services; industry; textile and clothing maquila; agricultural sector; coffee benefits; harvesting of sugar cane and sugar mills. According to our legislation, the minimum wages must be reviewed at least every three years, the last time an adjustment was made to wages was in January 2017.
The increase in the minimum wage for 2021 could condition the evolution of economy and employment, both in short and long term, However, many economists believe that an increase in the minimum wage could boost consumer spending and economic growth as the country recovers from public health and economic crises. To avoid negative repercussions for micro, small and medium-sized companies, Salvadoran authorities said that this measure will be subsidized through a state trust to avoid the dismissal of employees and the transfer of costs to the consumer.
