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El Salvador Payroll Services & Solutions

Horizons will simplify and fast-track your expansion into El Salvador

Establishing and maintaining payroll in El Salvador

If your organization is looking to expand in El Salvador, one of the first steps will be hiring employees locally, and this requires setting up a payroll in the country. While it is certainly possible to do this, El Salvador’s unique employment laws, as well as language and cultural barriers, can cause delays and make it a lengthy process for foreign businesses.

At Horizons, we help organizations from all sectors to build and scale their operations in El Salvador with our payroll outsourcing services. We will handle your organization’s payroll setup and management, giving you full flexibility to focus on your Salvadoran expansion, even if you don’t yet have an established entity in the country.

If you have an entity

If you have already established an official entity in El Salvador, we offer outsourced payroll support to help you set up and run your El Salvador payroll. In addition, we can provide HR, contract, and legal compliance support meaning you won’t have to worry about any of the complex administration and can focus on your expansion efforts.

This service is the perfect solution for any organization that has already registered an entity in El Salvador but could benefit from support navigating the unique Salvadoran employment system.

If you don’t have an entity

For organizations that have not established an entity in El Salvador, we provide full support to help set up, manage payroll, and hire your local workforce. Through our Salvadoran subsidiary, you can recruit and pay your employees, giving you greater flexibility a scalable, low-risk route into the Salvadoran market.

Establish your business in El Salvador with help from Horizons

Reliable Delivery

We guarantee that all payments will be on time, your data will be secure, and you can be up and running within just 48 hours.

Established Presence

Our in-country subsidiary will act as employer of record, offering you a presence in El Salvador for legal local employment.

Flexible Solutions

Our team will manage all of the admin, payroll, HR, and taxes, so you can focus on building your business in El Salvador.

Up-To-Date Compliance

We’ll ensure you stay fully compliant at all times with the laws laid out in El Salvador’s unique employment legislation.

Single Point of Contact

Our centralized service gives you a single point of contact, simplifying the entire El Salvador employment process.

Proven Worldwide Expertise

Our in-house teams of payroll and HR experts have already helped all kinds of organizations expand globally.

El Salvador payroll guide

What are the withholdings and tax requirements in El Salvador?

Employers and employees in El Salvador must pay a percentage of salary toward the nation’s social security scheme at rates of 7.5% and 3% respectively.

Income tax in El Salvador is progressive, with rates between 0% and 30% depending on income level. For non-domiciled individuals, the rate is fixed at 30%.

Entitlements and terminations

Generally, there is no requirement to give notice of termination in El Salvador, but it is good practice to do so. Employees may also wish to add terminations clauses to employment contracts.

Severance payments are common and generally equal around one month of salary for every year of service.

How to establish payroll in El Salvador

Establishing a payroll in El Salvador yourself can be a time-consuming and frustrating process. You will first need to register an entity in the country, then register with the tax office, open a bank account, and more. The whole process can take several weeks to complete, holding back your expansion and cutting into expected revenues.

Alternatively, you could use a payroll outsourcing firm to handle your Salvadoran payroll. At Horizons, our El Salvador payroll experts can set up and manage your benefits system for you, freeing you to focus on your successful expansion.

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Your all-in-one solution for payroll outsourcing and global expansion

Horizons’ El Salvador PEO, payroll, and employer of record services enable your business to quickly and efficiently start trading in El Salvador. With our help, your business can commence operations in El Salvador in just 48 hours, and you could save up to 82% in expansion costs, whether or not you already have a registered entity in the country.

We will handle your expenses, payroll, and legal compliance in El Salvador, as well as all HR work. And as the only global PEO with a dedicated recruitment team in-house, we can also source and hire your local employees, using our Salvadoran subsidiary to act as employer of record so you don’t need to have a Salvadoran entity.

Talk to our El Salvador payroll experts today to learn how our services can assist your expansion into El Salvador.