For up to date Information visit this link: https://www.bizlatinhub.com/professional-employer-organisation-peo-el-salvador/ El Salvador is unfairly overlooked when it comes to doing business. The region has a steadily growing economy and a diverse range of unexplored sectors/industries ripe for the picking. Before jumping into commercial operations in the region and employing staff, it is crucial to have an understanding of employer requirements/obligations. Additionally, one should be aware of the best method to engage potential employees. Stay informed about the employment requirements in El Salvador and check out the presentation made by our legal team in San Salvador.

1. Hiring Employees +
Recruitment Requirements in
El Salvador
www.bizlatinhub.com

2. www.bizlatinhub.com
Key Considerations: Employment
Find below, some of the key considerations that should be taken into account before contracting staff in El Salvador
Yes – 1 months
Is there an employee
probation period?
Yes
Do staff need a local
employment
contract?
Yes
Can expatriate staff
be hired?
15 days per annum
Vacation
entitlement
Max employer
contribution is
25.5%
Total cost of
employment
Employers
Who manages
withholding tax?
• Christmas Bonus
• Social Insurance
• Savings fund
Employee benefits

3. www.bizlatinhub.com
Pathways to Hiring Staff
Through a local
legal entity
Through a PEO solution:
Professional Employer
Organization

4. Forming a Legal Entity in El Salvador
www.bizlatinhub.com
In El Salvador, there are (3) main types of legal entities:
Public Limited Companies (S.A.), Limited Liability Companies (LTDA) and Branch Office
Companies
Advantages:
• Greater control of your employees
• Better knowledge of local market,
laws and regulation
• Viewed more positively than a
PEO solution
Disadvantages:
• High set-up/ongoing costs
• Administration involved in
managing a local company
• Accounting and tax obligations

5. Professional Employer Organization
www.bizlatinhub.com
Advantages:
• You can operate without forming
and maintaining a local entity
• Limited legal responsibility
• Cost-effective way to convert
international contractors into
employees
Disadvantages:
• The PEO becomes a co-employer
• Loss of control
• Costs involved with PEO services
• Compromised company culture
International PEO is a method to employ staff without having your own company

6. www.bizlatinhub.com
contact@bizlatinhub.com
Are you looking to hire staff?
As you are now aware, you have two
options to hire staff:
a) Through a Local Legal Entity or
b) Through a PEO solution
Need assistance hiring employees?
Partner with Biz Latin Hub to learn how we can
support you and your business in Latin America

7. Doing Business in El Salvador?
Learn More Here!
www.bizlatinhub.com
Requirements to
Incorporate a
Company/Corporation
in El Salvador
How to
Register/Create a
Company in El
Salvador?
Latin American
Expansion Continues
– Biz Latin Hub opens
new offices in Brazil,
Costa Rica and El
Salvador