Downtown San Salvador. The minimum wage in El Salvador is a contentious issue, as it significantly affects the livelihoods and economic stability of most Salvadorans.
Fair wages are crucial for reducing poverty and enhancing quality of life. However, in El Salvador, the minimum wage is insufficient, so many people leave to seek better opportunities and living conditions elsewhere.
Discussions about wage increases are ongoing as concerns about rising costs and inflation grow. This situation is making it increasingly difficult for workers to afford necessities—even with a 12% increase in the minimum wage in June 2025.
- Current Minimum Wages
- Commerce, Services, Industrial
- Textile and Clothing Manufacturing
- Sugar Cane Harvesting and Coffee Mill
- Agricultural, Fishing, and Coffee Harvesting
- Wages in the Informal Sector
- Increasing the Minimum Wage
- 2025 Wage Increase
- 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, industrial, and services earning the highest monthly salary of $408.80. Textile and clothing manufacturing receive slightly less, at $402.32 per month.
Workers in agriculture and related sectors earn significantly lower wages. Sugarcane harvesting and coffee processing workers make $305.23 per month, while those in coffee harvesting, fishing, livestock farming, and other agricultural activities receive $272.53 per month.
| Industry | Hourly | Daily | Monthly |
|---|---|---|---|
| Commerce, Services, and industrial | $1.68 | $13.44 | $408.80 |
| Textile and clothing manufacturing | $1.65 | $13.23 | $402.32 |
| Sugarcane harvesting and coffee farms | $1.25 | $10.04 | $305.23 |
| Coffee harvesting, fishing, livestock farming, and the agricultural sector | $1.12 | $8.96 | $272.53 |
Commerce, Services, and Industrial Sector Wages
The minimum wage rate for the commerce, services, and industrial sectors is $408.80 per month, equivalent to $1.68 per hour or $13.44 per day.
The commerce and services sector encompasses workers in call centers, hotels, secretarial work, banking, and various other professional fields.
Some of these jobs come with additional benefits, including bonuses and overtime pay. However, they may also have specific requirements, such as being bilingual and having a college degree.
The industrial sector includes sugar mills, coffee processing, and other industrial and agro-industrial activities.
Textile and clothing Manufacturing Wages
Workers in the textile and clothing manufacturing sectors receive a minimum wage of $402.32 per month, equivalent to $1.65 per hour or $13.23 per day.
The Salvadoran maquila, manufacturing, and textile sectors play a crucial role in the country’s economy, contributing significantly to job creation and economic growth.
This industry encompasses the production of various items, including t-shirts, pants, shoes, and other textile products.
The bulk of products manufactured by this sector are exported to the United States, Canada, and the European Union.
Sugar Cane Harvesting and Coffee Mill Wages
Workers engaged in sugar cane harvesting and those working in coffee mills receive a monthly minimum wage of $305.23, equivalent to $1.25 per hour or $10.04 per day.
Agricultural, Fishing, and Coffee Harvesting Sector Wages
The minimum wage rate for agricultural work, which includes coffee harvesting, fishing, livestock farming, and other agricultural-related activities, is $272.53 per month, equivalent to $1.12 per hour or $8.96 per day.
These sectors employ a significant portion of the Salvadoran population; however, they receive the lowest minimum wage in the country.
Furthermore, many employers in the agricultural sector conduct business informally, resulting in many workers being paid less than the minimum wage established by the government 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.
2025 Wage Increase
Starting June 1, 2025, El Salvador’s minimum wage increased by 12%, following a proposal from President Nayib Bukele. The country’s minimum wage council approved the measure to raise earnings.
The wage hike affects all economic sectors, aiming to improve the purchasing power of thousands of workers. Officials say the increase reflects El Salvador’s continued economic recovery and growing labor demand.
President Bukele emphasized the government’s commitment to raising living standards. The administration says this marks another step toward reducing poverty.
El Salvador Minimum Wage in Central America
El Salvador has Central America’s second lowest minimum wage, at $408.80 per month, 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 | $272.53 | $408.80 |
| 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 $272.53 per month cannot even afford food alone. Even those in commerce and industry, earning $408.80, 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.
