Downtown San Salvador. The minimum wage in El Salvador is a hot topic of discussion as it directly impacts most Salvadoran’s livelihoods and economic stability.
Fair wages are crucial for reducing poverty and enhancing quality of life. But in El Salvador, the minimum wage is just not enough, so many people leave to find better opportunities and better living conditions elsewhere.
Debates over wage adjustments are heating up as more people worry about rising costs and inflation, making it harder for workers to afford basic necessities.
- Current Minimum Wages
- Commerce, Services, Industry, and Sugar Mill Wages
- Textile and Clothing Maquila Wages
- Sugar Cane Harvesting and Coffee Mill Wages
- Agricultural, Fishing, and Coffee Harvesting Sector Wages
- Wages in the Informal Sector
- Increasing the Minimum Wage
- Recent Wage Debates and Trends
- El Salvador Minimum Wage in Central America
- Wages and the Reality for Salvadoran Workers
SEE ALSO: El Salvador’s Challenges and Concerns: What Concerns Salvadorans the Most?
Current Minimum Wages
Minimum wages in El Salvador vary by industry, with workers in commerce, industry, services, and sugar mills earning the highest at $365.00 per month. Maquila workers in textile and clothing manufacturing receive slightly less, at $359.16 per month.
Workers in agriculture and related sectors earn significantly lower wages. Coffee mill and sugar cane harvesting workers make $272.66 per month, while those in agriculture, fishing, and coffee harvesting receive just $243.46 per month.
The Salvadoran minimum wage is divided into four sectors, with two designated explicitly for urban areas and two for rural regions.
| Industry | Hourly | Daily | Monthly |
|---|---|---|---|
| Commerce, services, industry, and sugar mills | $1.50 | $12.00 | $365.00 |
| Textile and clothing maquila workers | $1.48 | $11.81 | $359.16 |
| Sugar cane harvesting and coffe mills | $1.12 | $8.96 | $272.66 |
| Agricultural sector, fishing, coffee harvesting | $1.00 | $8.00 | $243.46 |
The last minimum wage increase occurred in August 2021 during the Nayib Bukele administration; before that, it happened in 2018, under the Salvador Sanchez Ceren presidency.
Commerce, Services, Industry, and Sugar Mills Wages
The minimum wage rate for commerce, services, industry, and sugar mill workers is $365.00 per month, which is $1.50 per hour or $12.00 per day.
The commerce and services sector includes workers in call centers, hotels, secretarial work, bank tellers, and many other types of professional work.
Some of these jobs come with additional benefits, including bonuses and overtime. However, they may also have specific requirements, such as being bilingual and having a college degree.
Textile and Clothing Maquila Workers Wages
Workers in the textile and clothing maquila sectors receive a minimum wage of $359.16 per month, equivalent to $1.48 per hour or $11.81 per day.
The Salvadoran maquila, manufacturing, and textile sectors play a crucial role in the country’s job creation. This industry includes the production of various items, such as shirts, pants, shoes, and more.
The bulk of products manufactured by this sector are exported to the United States, Canada, and Europe.
Sugar Cane Harvesting and Coffee Mill Wages
Workers engaged in sugar cane harvesting and coffee mills receive a monthly minimum wage of $272.66, equivalent to $1.12 per hour or $8.96 per day.
Agricultural, Fishing, and Coffee Harvesting Sector Wages
The minimum wage rate for agricultural work, fishing, and coffee harvesting is $243.46 per month, regardless of the number of days in the month. It is $1.00 per hour or $8.00 per day.
Like the industry with the highest salaries, these sectors employ a significant portion of the Salvadoran population; nevertheless, they receive the lowest minimum wage in the country.
Many employers in the agriculture sector conduct business informally, resulting in many workers being paid less than the minimum wage established for this sector.
Wages in the Informal Sector
El Salvador’s informal sector does not have a minimum wage, allowing employers to pay workers whatever they deem appropriate for the job being done. As a result, wages may be higher or lower than the designated minimum for each industry.
Although El Salvador has laws requiring employers to pay at least the minimum wage, enforcing these regulations in the informal sector remains a challenge.
The widespread presence of informal businesses makes it difficult to accurately track workers’ earnings and hours.
Most informal businesses operate in agriculture or small-town commerce. Consequently, wages in the informal sector often fall below the government’s lowest established minimum wage.
Increasing the Minimum Wage
Increasing the minimum wage in the country is not an easy thing to do. Workers want an increase that covers at least the essential cost of living in El Salvador; however, businesses oppose a significant increment as it would reduce their profit margin.
Article 144 of the Salvadoran labor laws says the following: “Every worker, including the home workers, has the right to earn a minimum wage that sufficiently covers the common needs of their home, in the material, moral and cultural order, which will be set periodically.”
According to the country’s Labor Code, the minimum wage council must evaluate El Salvador’s minimum wage every three years to verify whether increasing wages is feasible.
The council analyzes the country’s overall economic situation, including the economy, inflation, the cost of essential items, and the business environment. They assess whether a wage increase is necessary and recommend it to the Salvadoran Congress.
The minimum wage council comprises two representatives from the labor sector, two from the employer sector, and three from the government.
Ultimately, the government makes the final decision on minimum wage changes. The process involves balancing the interests of workers and businesses while ensuring economic growth.
Wage adjustments remain a highly debated issue in El Salvador.
Recent Wage Debates and Trends
The Salvadoran Minimum Wage Council has faced criticism for failing to review wages in 2024 as scheduled. Workers and advocacy groups argue that inflation and rising living costs demand urgent adjustments, while businesses and officials remain silent.
Last month, the Foundation for Studies on the Application of Rights (FESPAD) and the Permanent Roundtable for Labor Justice (MPJL) recommended that the Salvadoran wage be between $800 and $1,000 monthly.
The current administration has continued the trend of delaying minimum wage reviews, raising concerns among workers. Without a minimum wage adjustment, Salvadoran workers will continue to struggle as the cost of living has increased.
El Salvador Minimum Wage in Central America
El Salvador has Central America’s second lowest minimum wage, at $365.00 per month, just above Nicaragua’s $347.92. This wage disparity highlights economic challenges and wage inequality across the region.
Panama and Costa Rica have the highest minimum wages in Central America. These wages reflect stronger economies and higher living costs than other countries in the region.
| 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 |
Wages and the Reality for Salvadoran Workers
One significant factor contributing to El Salvador’s poverty problem and prompting many citizens to seek opportunities elsewhere is the country’s minimum wage.
The Salvadoran minimum wage is insufficient, failing to support a decent lifestyle or elevate the living standards of workers and their families. Furthermore, it falls far short of covering the overall cost of living in the country.
With the basic food basket costing $247, agriculture and fishing workers earning $243.46 per month cannot even afford food alone. Even those in commerce and industry, earning $365, struggle to cover additional necessities like rent and utilities.
Today, the primary concern for Salvadorans revolves around the economy, particularly wages. The combination of a high cost of living and low incomes stands as the foremost reasons driving many Salvadorans into poverty.
