San Salvador Historic Downtown.
Poverty remains one of the most defining issues shaping daily life in El Salvador. Understanding how many people live in poverty, why it persists, and what policies exist helps explain the broader realities of living in El Salvador.
Because of poverty, a significant portion of the country’s citizens grapple with economic hardship, limited access to necessities, and persistent social inequality.
According to the Central Reserve Bank of El Salvador BCR, about a fourth of El Salvador’s households struggle to meet their daily necessities because of poverty.
- El Salvador Poverty Rate
- Relative Poverty
- Extreme Poverty
- Rural Poverty
- Urban Poverty
- People Living in Poverty
- Multidimensional Poverty
- Causes of Poverty
- Low Wages
- Informal Employment
- Lack of Economic Opportunities
- Low Levels of Education
- Rural Inequality
- Limited Access to Quality Healthcare
- Crime and Violence
- Poverty Perspective
SEE ALSO: Living in El Salvador: Top Reasons for Moving to El Salvador
What is El Salvador Poverty Rate?
The poverty rate in El Salvador is 22.5%, with 14.8% of households living in relative poverty and 7.7% in extreme poverty. Overall, the country’s poverty rate decreased by 3.3 percentage points or 12.8% from 2024 to 2025.
The 3.3 percentage points decrease means the number of Salvadorans living in poverty fell by 262,405 in 2025 compared with 2024, according to the latest Multipurpose Household Survey released in 2026 by the Salvadoran Central Reserve Bank, BCR.
| 2023 | 2024 | 2025 | 2024-2025 Change | |
|---|---|---|---|---|
| Poverty Rate | 27.2 | 25.8 | 22.5 | -3.3 (-12.8%) |
| Relative Poverty | 18.4 | 16.7 | 14.8 | -1.9 (-11.5%) |
| Extreme Poverty | 8.8 | 9.1 | 7.7 | -1.4 (-15.2%) |
Poverty in El Salvador is classified into two types: relative and extreme, depending on household income relative to the cost of the country’s Basic Food Basket (CBA). Additionally, the national poverty rate can be differentiated by rural and urban sectors.
Relative Poverty
The percentage of Salvadorans living in relative poverty in 2025 was 14.8%, an improvement from the 16.7% recorded the previous year.
This represents a decline of 1.9 percentage points, equivalent to an 11.5% reduction from the previous year. Despite the improvement, relative poverty continues to affect a significant share of Salvadoran households.
According to the Central Reserve Bank, relative poverty applies to households earning above the basic food basket (CBA – Canasta Básica Alimentaria) cost but below the expanded basket, which is valued at twice the CBA.
In 2025, the average monthly cost of the CBA was about $210 per household in urban areas and $146 in rural areas, resulting in different poverty thresholds depending on Salvadorans’ location.
The BCR reports indicate that the number of individuals living in relative poverty decreased by 156,453 in 2025, falling from 1,198,934 people in 2024 to 1,042,481 in 2025—a reduction of 13%, which is good news for the country.
Extreme Poverty
Extreme poverty refers to households whose income is insufficient to cover even the basic food basket (CBA), placing them below the minimum threshold for essential nutritional needs.
The percentage of Salvadorans living in extreme poverty declined to 7.7% in 2025, down from 9.1% the previous year.
The number of people living in extreme poverty decreased by 15.2% in 2025, falling to 504,320. This means that 105,952 Salvadorans were lifted out of extreme poverty compared to the previous year.
According to the 2024 Multipurpose Household Survey (EHPM), roughly 1 out of every 13 Salvadorans now lives in extreme poverty, or about 7.92% of the population.
Rural Poverty
Poverty remains considerably higher in rural El Salvador. In 2025, the rural poverty rate fell to 24.8%, down from 27.1% in 2024 and 28.2% in 2023.
Relative poverty dropped to 14.6% in 2025, a 14.1% decrease from 2024. Meanwhile, extreme poverty remained at 10.1%, showing virtually no improvement from the previous year.
| 2023 | 2024 | 2025 | 2024-2025 Change | |
|---|---|---|---|---|
| Rural Poverty Rate | 28.2 | 27.1 | 24.8 | -2.3 (-8.6%) |
| Rural Relative Poverty | 17.1 | 17.0 | 14.6 | -2.4 (-14.1%) |
| Rural Extreme Poverty | 11.1 | 10.1 | 10.1 | -0.04 (-0.4%) |
Overall, the numbers show progress in reducing rural poverty, particularly relative poverty. However, roughly one in four rural households still lives in poverty, highlighting the economic challenges that remain in rural communities.
Urban Poverty
Poverty in urban El Salvador declined considerably in 2025. The Salvadoran urban poverty rate fell to 21.1%, down from 25.0% in 2024 and 26.5% in 2023.
Relative poverty dropped to 14.9% in 2025, compared to 16.6% the previous year, a 10.1% decrease. Extreme poverty fell to 6.2%, down from 8.5% in 2024.
| 2023 | 2024 | 2025 | 2024-2025 Change | |
|---|---|---|---|---|
| Urban Poverty Rate | 26.5 | 25.0 | 21.1 | -3.9 (-15.7%) |
| Urban Relative Poverty | 19.2 | 16.6 | 14.9 | -1.7 (-10.1%) |
| Urban Extreme Poverty | 7.3 | 8.5 | 6.2 | -2.3 (-26.7%) |
Overall, urban poverty declined by 3.9 percentage points, or 15.7%, in 2025. The largest improvement was in extreme poverty, which dropped by 26.7% compared to the previous year.
Salvadoran People Living in Poverty
The number of Salvadorans living in poverty declined considerably in 2025. About 1.55 million people lived in poverty, down from 1.81 million in 2024 and 1.92 million in 2023.
| 2023 | 2024 | 2025 | 2024-2025 Change | |
|---|---|---|---|---|
| People in Poverty | 1,923,303 | 1,809,206 | 1,546,801 | -262,405 (-14.5%) |
| People in Relative Poverty | 1,334,386 | 1,198,934 | 1,042,481 | -156,453 (-13.0%) |
| People in Extreme Poverty | 588,917 | 610,272 | 504,320 | -105,952 (-8.8%) |
In 2025, approximately 1.04 million Salvadorans lived in relative poverty, 156,453 fewer than in 2024. This represents a 13% decrease in the number of people experiencing relative poverty.
Meanwhile, 504,320 Salvadorans lived in extreme poverty, down by 105,952 people, or 8.8%, from 2024. Overall, the number of Salvadorans living in poverty declined by 262,405, or 14.5%.
Multidimensional Poverty
Multidimensional poverty in Salvadoran households fell from 21.1% in 2024 to 20.1% in 2025, marking a notable national reduction in non-monetary deprivation.
| 2023 | 2024 | 2025 | 2024-2025 Change |
|---|---|---|---|
| 25.1 | 21.1 | 20.1 | -1.0 (-4.7%) |
Unlike the income-based poverty rate, multidimensional poverty measures the overlapping hardships that limit a person’s well-being, such as a lack of education, access to health services, housing, or basic utilities.
The multidimensional poverty methodology, in line with international best practices, is based on the population’s aspirations and priority needs.
Measuring multidimensional poverty goes beyond household income levels. It also enables evaluation of key areas and identification of dimensions that require new strategies. There are five major dimensions of well-being, comprising twenty key indicators.
The incidence of multidimensional poverty is the percentage of households classified as poor in El Salvador, where the poverty threshold is defined as experiencing 7 or more deprivations.
Causes of Poverty in El Salvador
Poverty in El Salvador is not a new problem; it is an issue rooted in long-standing structural conditions that limit economic improvements and trap millions in low-income realities.
This poverty results from several economic and social factors that have developed over decades. While conditions have changed over time, many Salvadorans still face barriers that make it difficult to improve their standard of living.
Some of the leading causes of poverty in El Salvador are low wages, informal employment, low levels of education, limited access to quality healthcare, and a lack of economic opportunities. These challenges make it harder for families to earn more and build long-term financial stability.
Rural inequality is another important factor, as jobs, investment, and public services are often more limited outside urban areas.
Crime and violence have also played a role over the years, hurting businesses, discouraging investment, and reducing economic opportunities in affected communities.
Low Wages
One of the primary reasons poverty exists in El Salvador is low wages. Currently, El Salvador’s highest minimum wage is $408 per month, but reaching that level typically requires a university degree or a marketable skill, such as proficiency in English or another language.
Even when someone living in poverty earns the minimum wage, the income is too low to lift them out of poverty. The minimum wage barely covers basic living costs in most parts of the country.
The situation is especially difficult for individuals with limited education, those residing in rural areas, or those working informally, where wages tend to be lower. Low pay remains a primary factor contributing to El Salvador’s high poverty rate.
Informal Employment
Informal employment is closely tied to low wages and poverty in El Salvador. Many informal workers earn less than workers with formal jobs, making it harder to cover basic household expenses.
Informal jobs also often lack employment contracts, benefits, job security, and social protection. Without stable wages and workplace protections, families have fewer opportunities to save money, improve their living conditions, or escape poverty.
Lack of Economic Opportunities
A lack of economic opportunities helps keep the cycle of poverty going in El Salvador. In many communities, especially outside major cities, finding stable, well-paying work can be difficult.
Good-paying jobs are limited, while much of the available work is informal, temporary, or low-wage. Even people with education or job skills may struggle to find employment that matches their experience and abilities.
Opportunities are even more limited in poorer communities, where factories, offices, and formal businesses may be scarce. Many people depend on agriculture, street vending, day labor, or other informal work to earn a living.
Young people can be especially affected by the lack of opportunities. With few options available, some turn to informal work or migration, while others give up on their career goals.
Without more stable and better-paying jobs, escaping poverty becomes much harder. This can keep families struggling financially and allow poverty to continue from one generation to the next.
Low Levels of Education
Low levels of education continue to fuel the cycle of poverty in El Salvador. The latest Multipurpose Household Survey released by the Salvadoran government reports that the national average level of schooling is about 7.5 grades.
UNICEF data paints an even sharper picture: fewer than half of Salvadorans finish sixth grade, only one in three completes ninth grade, and just one in five graduates from high school.
In low-income communities, accessing education is challenging. Many families do not prioritize schooling, and many cannot afford the costs associated with continuing beyond basic education.
Attendance is another significant barrier. Some parents keep their children out of school so they can work and contribute to the household income, reinforcing the cycle of short-term survival over long-term opportunity.
Education in El Salvador is a problem. With such limited schooling, these children lose access to future jobs, skills, and income mobility, making it far more challenging for them—and their families—to ever escape poverty.
Rural Inequality
People living in rural areas of El Salvador face more profound and more persistent poverty than those in urban areas. Distance, limited services, and weak infrastructure make daily life more expensive and opportunities harder to reach.
Remote communities often lack paved roads, reliable transportation, and digital connectivity. Without these basics, people struggle to access markets, jobs, schools, or healthcare, reinforcing economic isolation.
Investment in rural areas remains low, resulting in fewer formal jobs and lower wages. Most work is seasonal, informal, or tied to agriculture, offering little security or social protection.
Public services are also limited. Many rural families rely on overcrowded schools, understaffed clinics, and irregular access to water or electricity, conditions that limit social mobility from an early age.
Education gaps are particularly severe. Students must travel long distances to reach secondary or technical schools, causing many to drop out and settle for low-paid work.
With fewer opportunities to climb the economic ladder, rural households face a continuous cycle of low income, scarce resources, and restricted options—one that keeps poverty firmly rooted across generations.
Limited Access to Quality Healthcare
Limited access to quality healthcare keeps many Salvadorans trapped in poverty. When families cannot afford medical treatment, illnesses go untreated, leading to long-term health problems that limit their ability to work and earn income.
Poor health forces people to spend what little money they have on medication or private clinics, pushing them further into debt. A single medical emergency can wipe out years of savings for low-income households.
Chronic conditions, disabilities, and malnutrition go untreated in rural and marginalized communities, reducing productivity and increasing dependency. Children growing up sick or undernourished start life with fewer opportunities to learn, work, and advance.
Lack of healthcare also affects future generations. When parents cannot stay healthy, children often have to work instead of studying, perpetuating a cycle of low education, low income, and limited access to services. Without affordable, accessible healthcare, poverty is not just endured—it is inherited.
Crime and Violence
Crime and violence in El Salvador are now at their lowest levels in more than five decades. Still, the damage they caused to the country’s poverty levels has not disappeared.
For years, violence was a significant factor behind El Salvador’s high poverty rate. After the civil war ended in 1992, many families faced extortion, threats, and criminal control that blocked economic progress.
Areas with high crime struggled to attract businesses and investors, resulting in fewer formal jobs and higher unemployment rates than in safer regions. The economic gap that formed persists to this day.
Education also suffered. Fear of gangs kept many students from attending high school or university, creating generations with limited skills, few credentials, and reduced earning potential.
Those who missed out on education during peak violence now struggle to find decent employment. Their lack of schooling keeps them locked in low-wage or informal work.
Security has improved, but rebuilding opportunity takes time. The long-term effects of crime on education, employment, and community development continue to fuel poverty in El Salvador.
Poverty Perspective
Poverty remains a major challenge to El Salvador’s long-term development. Reducing inequality will require sustained economic growth and policies that help the El Salvador Economy create better-paying jobs and more opportunities.
The government has expanded full scholarships for public university students, giving low-income youth a chance at higher education previously limited to those who could afford it.
Improved public security has also reduced homicides and extortion, allowing businesses and communities to operate more freely. The government has combined these improvements with tourism promotion, infrastructure projects, and incentives for foreign investment.
Bitcoin was also promoted to attract investment and expand financial inclusion, although its economic benefits remain mixed. Tourism has created jobs and revenue, but many benefits remain concentrated in coastal and urban areas.
Ultimately, reducing poverty will depend on whether economic growth produces stable jobs, higher incomes, and greater opportunities for ordinary Salvadorans.
Sources:
2025 Multipurpose Household Survey.
2025 Multipurpose Household Survey Tables.
2024 Multipurpose Household Survey Tables.
2023 Multipurpose Household Survey.
2022 Multipurpose Household Survey.
2021 Multipurpose Household Survey.
