San Salvador El Salvador. SAN SALVADOR, El Salvador — President Nayib Bukele proposed a 12% increase in El Salvador’s minimum wage Friday, a long-awaited measure amid mounting pressure from civil society groups and rising household costs.
“Today, we have sent the following proposal to the National Minimum Wage Council,” Bukele announced on social media, sharing a slide that outlined the 12% raise across four major sectors: maquila, industrial, agriculture, and commerce and services. Pending approval, the increase is slated to take effect in June.
The announcement follows criticism over the government’s failure to review the minimum wage since August 2021, despite a legal requirement for triennial revisions.
Article 159 of the Labor Code mandates that the wage be updated by decree every three years, placing the subsequent scheduled adjustment in August 2024.
While the cost of El Salvador’s basic food basket rose 20.9%—from $204.70 in August 2021 to $247.60 in January 2025—the minimum wage has not correspondingly increased.
The food basket, considered the country’s closest proxy for the cost of living, does not account for additional essential expenses such as housing, education, and healthcare.
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El Salvador has also lagged behind its regional neighbors, becoming the only Central American country that did not adjust its minimum wage at the beginning of this year.
The last wage adjustment, implemented in September 2021, raised the minimum monthly salary to $365 for commerce and service workers, $359.16 for maquila sector employees, $272.55 for coffee processing and sugarcane workers, and $243.46 for agricultural laborers.
The president’s proposal will now be reviewed by the National Minimum Wage Council (CNSM), a tripartite body consisting of representatives from the government, workers, and employers.
However, the Ministry of Labor and Social Security confirmed via public records that the council had not convened since August 2022.
Bukele’s announcement follows earlier proposals from civil society. In December 2023, the Center for Consumer Defense (CDC) urged a 25% increase, citing data that estimated the cost of living for a Salvadoran family had jumped from $706 in 2019 to $920 in 2023.
As inflation continues to outpace wages, labor, and advocacy groups remain vocal in demanding urgent reforms to protect household purchasing power.
