Downtown San Salvador
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, a fourth of El Salvador’s households struggle to meet their daily necessities because of poverty.
What is El Salvador Poverty Rate?
The poverty rate in El Salvador is 28.5%, with 18.9% of the population living in relative poverty and 9.6% in extreme poverty. Overall, poverty decreased by 5.9% from 2023 to 2024.
The 5.9% decrease means that the number of Salvadorans living in poverty fell by 114,097 in 2024, compared to 2023, according to the latest Multipurpose Household Survey released in September 2025.
| 2020 | 2021 | 2022 | 2023 | 2024 | 2023-2024 % Change |
|
|---|---|---|---|---|---|---|
| National Rate | 28.7 | 27.8 | 29.5 | 30.3 | 28.5 | -5.9% ▼ |
| Extreme Poverty | 8.7 | 8.4 | 9.1 | 9.3 | 9.6 | 3.6% ▲ |
| Relative Poverty | 20.0 | 19.4 | 20.4 | 21.1 | 18.9 | -10.2% ▼ |
| 2022 | 2023 | 2024 | 2023-2024 % Change |
|
|---|---|---|---|---|
| National Rate | 1,868,206 | 1,923,303 | 1,809,206 | -114,097 (-5.9%) |
| Extreme Poverty | 578,801 | 588,917 | 610,272 | 21,355 (3.6%) |
| Relative Poverty | 1,289,405 | 1,334,386 | 1,198,934 | -135,452 (-10.2%) |
Poverty in El Salvador is categorized into two types: relative and extreme, based on household income in relation to the cost of essential consumption baskets.
Relative Poverty
Relative poverty applies to households earning above the basic food basket (CBA) cost but below the expanded basket (CA), which equals the value of two CBAs, according to the Central Reserve Bank.
The percentage of Salvadorans living in relative poverty dropped to 18.9% in 2024, an improvement from 21.1% the previous year. This decline reflects a reduction in households that can cover basic food costs but still lack enough income to afford essential non-food goods and services.
The BCR reports indicate that the number of individuals living in relative poverty decreased by 10.15% in 2024, falling from 1,334,386 people in 2023 to 1,198,934 in 2024—a reduction of 135,452 Salvadorans.
By the end of 2024, at least 1.1 million people lived in relative poverty, down from more than 1.3 million the previous year, according to the Central Bank’s latest data.
While the survey shows evident progress in reducing relative poverty—households able to afford the Basic Food Basket but not the Expanded Basket—that progress does not extend to extreme poverty.
In contrast, extreme poverty has risen for three consecutive years, showing that the country’s poorest households remain trapped below even the minimum cost of the Basic Food Basket.
Extreme Poverty
Extreme poverty refers to households whose income is insufficient to cover even the basic food basket, placing them below the minimum threshold for essential nutritional needs.
The percentage of Salvadorans living in extreme poverty rose to 9.6% in 2024, up from 9.3% the previous year, marking the third consecutive annual increase.
This trend shows that the country’s poorest households continue to fall further behind, unable to cover even the basic cost of food needed for survival.
The number of people living in extreme poverty increased by 3.6% in 2024, rising to 610,272 people. That means 21,355 Salvadorans fell into extreme poverty compared to the previous year.
The 2024 total is also higher than the 578,801 people registered in 2022, confirming a two-year upward trend in the most severe level of poverty.
Roughly one in ten Salvadorans now lives in extreme poverty, according to the 2024 Multipurpose Household Survey (EHPM), underscoring the depth of economic vulnerability nationwide.
Multidimensional Poverty
Multidimensional poverty in Salvadoran households fell from 25.1% in 2023 to 21.1% in 2024, marking a notable national reduction in non-monetary deprivation.
Unlike 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.
Instead of asking how much a family earns, this approach evaluates whether people actually have access to the essential conditions required to live with dignity.
Causes of Poverty in El Salvador
Poverty in El Salvador is nothing new; it is an issue rooted in long-standing structural conditions that limit economic mobility and trap millions in low-income realities. These factors reinforce each other and prevent households from achieving lasting financial stability.
Low wages and widespread labor informality keep a large share of workers earning below what is needed to cover basic living costs. Most informal jobs offer no benefits, contracts, or social protection.
Limited access to quality education and healthcare weakens human development. Many Salvadorans cannot obtain the skills, credentials, or medical attention required to break the cycle of poverty across generations.
Rural inequality remains severe. Remote areas often face weaker infrastructure, lower investment, and fewer public services, leaving rural families with lower incomes, fewer schools, and limited access to clean water and transportation.
A lack of formal economic opportunities—especially for young people and women—pushes many into migration, informal employment, or survival-based activities. The economy generates jobs, but too few are stable or well-paid.
Crime and violence deepened poverty by discouraging investment, displacing families, and increasing living costs. Entire communities lose jobs, schools, and businesses when insecurity becomes part of daily life.
Low Wages
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 in poverty manages to earn 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 particularly challenging for individuals with limited education or those residing in rural areas, where wages tend to be even lower. Low pay remains a central driver of El Salvador’s high poverty rate.
Low Levels of Education
Low levels of education continue to fuel the cycle of poverty in El Salvador. The latest Multipurpose Household Survey, published in September 2025, reports that the national average level of schooling is about 7 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.
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.
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.
Rural Inequality
People living in rural areas of El Salvador face more profound and more persistent poverty than those in cities. 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.
Lack of Opportunities
A lack of economic opportunities keeps the cycle of poverty alive in El Salvador. In many communities, particularly those outside major cities, people often lack access to stable, well-paying employment opportunities.
High-paying jobs are scarce, and most available work is informal, temporary, or low-wage. Even those with skills or education often struggle to find positions that match their abilities.
In poverty-stricken areas, job options are even more limited. Factories, offices, and formal businesses rarely operate in these areas, forcing residents to rely on street vending, agriculture, or day labor to make a living.
Due to low wages, families are unable to save, invest, or improve their living conditions. Most income is spent on food, transportation, and basic expenses, leaving little for education, healthcare, or small business ventures.
This lack of opportunity affects young people most. Many migrate, join informal work, or abandon career aspirations because they see no path forward at home.
Without better employment options, poverty is not just endured—it becomes a permanent condition passed from one generation to the next.
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 or investors, resulting in fewer formal jobs and higher unemployment rates compared to 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 in El Salvador remains a significant barrier to national progress. The continued rise in extreme poverty, particularly in rural areas, highlights the need for focused social and economic action.
Reducing these inequalities will take time and sustained effort. Even so, the government must implement stronger policies and long-term strategies to meaningfully reduce poverty levels, rather than merely managing their consequences.
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.
Minimum wage reform in 2025 raised salaries across several sectors, offering short-term relief to workers; however, critics argue that wages still fall below the real cost of living.
Public security policies drastically reduced homicide and extortion, opening the door for investment, mobility, and schooling in areas once controlled by gangs. However, their long-term economic impact is still unfolding.
The government also links poverty reduction to economic growth strategies, including tourism promotion, large-scale infrastructure projects, and incentives for foreign investors.
The Bitcoin law was marketed as a way to attract capital, modernize finance, and boost financial inclusion. Still, its results remain mixed and uneven across the population.
Tourism remains the strongest economic driver so far, creating jobs and generating revenue. Still, the benefits are concentrated in coastal and urban areas, rather than the poorest rural regions.
El Salvador’s fight against poverty now depends on whether these policies can deliver lasting jobs, higher incomes, and equal access to opportunity—not just short-term gains.
