FESPAD and MPJL Press Conference. SAN SALVADOR, El Salvador — El Salvador has the second-lowest minimum wage in Central America and remains the only country in the region that has not complied with its wage review regulations, according to a new study released Friday, March 13 by the Foundation for Studies on the Application of Law (FESPAD) and the Permanent Roundtable for Labor Justice (MPJL).
The investigation revealed that only Nicaragua trails El Salvador in minimum wage levels.
El Salvador’s wages range from $243.46 to $365.00, compared to Nicaragua’s $155.46 to $347.92. Other countries offer significantly higher minimum wages, with Costa Rica leading at $792.86 to $1,558.98.
| Country | Lower Minimum Wage | Higher Minimum Wage | |
|---|---|---|---|
| 1 | Panama | $393.60 | $1,188.00 |
| 2 | Costa Rica | $792.86 | $1,558.98 |
| 3 | Honduras | $356.71 | $704.35 |
| 4 | El Salvador | $243.46 | $365.00 |
| 5 | Nicaragua | $155.46 | $347.92 |
The study also criticized El Salvador for failing to review its minimum wage since August 2021, despite national laws requiring a review at least every three years.
The deadline for the most recent review expired in August 2024, yet the National Minimum Wage Council or the executive branch has not taken any action.
“The minimum wage review period expired in August 2024. The council must meet, review, and make recommendations, but we have no indication that this has happened,” said Patricia De Claudio of the MPJL.
In contrast, Guatemala, Honduras, and Costa Rica adjusted their wages in January 2025, while Nicaragua and Panama did so in 2024.
FESPAD Executive Director Hector Carrillo emphasized the need for wage adjustments to reflect the rising cost of living. “This analysis aims to highlight regional disparities and the stagnation in El Salvador.
Carrillo said that the minimum wage should reflect and be based on what families actually need to survive.
The MPJL estimates that the current minimum wage is insufficient. It cites a growing cost of living worsened by inflation since 2022.
The group is working on a proposal supported by data from the Center for Consumer Defense recommending that the Salvadoran wage be between $800 and $1,000 monthly.
Ovidio Hernández, a member of the MPJL, stated that the proposed wage should at least cover the cost of two basic food baskets, clothing, and essential services.
FESPAD and the MPJL also urged the government to eliminate the value-added tax (IVA) on essential food items.
The most recent wage increase in El Salvador came in 2021 when a 20% raise brought the maximum wage in the commerce, industry, and service sectors to $365.
However, FESPAD official Óscar Morales argued that future increases must be guided by technical analysis, not political discretion.
“The council must propose wage increases, not the president. That is the legal process,” Morales said.
FESPAD and the MPJL are calling on the National Minimum Wage Council to reconvene immediately and fulfill its legal obligation to reassess wages.
