Struggling to Survive in El Salvador: In 16 of 44 Municipalities, People Live on Less Than $200 a Month

Struggling to survive financially in El Salvador is a constant concern for many Salvadorans. In some municipalities, residents live on less than $200 a month, making it difficult to afford necessities like food, housing, higher education, and healthcare.

A report created by the United Nations Development Programme (UNDP) regarding the new Salvadoran municipalities revealed that people in 16 of the 44 new municipalities live on less than $200 per month; this dollar figure represents the average income per capita.

Living on less than $200 is difficult, as it falls below the current minimum wage for the services and industrial sectors, which is $365. It also doesn’t cover the cost of the basic food basket for a family, which was $264.91 for urban areas in July 2024.

One thing these municipalities have in common is that most of the people there work in the informal sector, which always pays less than formal employment.

In fact, 11 of the 16 municipalities listed above have an informal employment rate of over 80%, with four exceeding 90%. Nationally, the informal employment rate stands at 70%.

Morazan North has the lowest average income per capita; a person in this municipality earns an average income of $157.94 per month. Furthermore, this municipality has the highest informal employment rate in El Salvador, at 93.9 percent.

Also, Morazan North has one of the highest poverty rates in the country. The municipality’s monetary poverty rate is 38.6%, the third highest in the nation, while its multidimensional poverty rate stands at 46.7%, the second highest in El Salvador.

Ahuachapan South ranks second, with an average per capita income of $160.00 and a high informal employment rate of 86.2%, which ranks 10 in the country.

This municipality also has high poverty rates. Their monetary poverty rate is 43.8%, the second highest in the country, and their multidimensional poverty rate is 50.2%, the highest in the nation.

SEE ALSO: Over 30% Monetary Poverty in 17 of 44 Salvadoran Municipalities

According to the UNDP report, El Salvador has two entire departments, Ahuachapan and Cabañas, where the population survives on an average per capita income of less than $200.00 per month.

The Ahuachapan Center municipality has the highest per capita income in the department at $195.25, while the Cabañas West municipality leads its department with $183.13. Both per capita income figures are significantly below the national average of $249.42.

Highest Average Income Per Capita

On the other hand, El Salvador has four municipalities with an average per capita income of over $300.00 per month: La Libertad East, Chalatenango North, San Salvador Center, and La Libertad South.

The La Libertad East municipality has the highest average income per person in the country, at $425.97 Furthermore, this municipality has the highest average family income at $1,079.56.

Chalatenango North ranks second in average per capita income at $415.16 per month and has the second-highest average family income at $1,053.16. This municipality relies heavily on remittances, with 46.1% of households receiving them.

Struggling to survive in El Salvador remains a harsh reality for many, with low incomes, high poverty rates, and widespread informal employment. These challenges result in many people surviving financially on less than $200 per month.