Social Security and Pension Contributions in El Salvador
Rates
| Contribution | Employer | Employee |
|---|---|---|
| ISSS (health), salary up to USD 1,000 a month | 7.5% | 3% |
| ISSS, salary above USD 1,000 a month | USD 75.00 fixed | USD 30.00 fixed |
| AFP (pension), on total salary | 8.75% | 7.25% |
| INCAF training levy, employers with ten or more staff, on the total payroll | 1% | — |
Source: PwC Worldwide Tax Summaries: El Salvador, other taxes1
Figures checked November 2026. A guide only, not tax, legal or financial advice.
Sources for the calculator
- PwC Worldwide Tax Summaries: El Salvador, other taxes
- Decree 893 of 2023: Law of the Training Institute INCAF, replacing INSAFORP (PDF, in Spanish)
- Asamblea Legislativa: Labour Code (PDF, in Spanish)
- Deloitte: scope of the Special Quincena 25 Law (in Spanish)
- Consortium Legal: Special Law Quincena 25 in El Salvador
- Executive Decree 11 of 2025: minimum wages from 1 June 2025 (PDF, in Spanish)
Worked example
For a monthly salary of USD 1,000, the employer pays USD 75.00 to ISSS and USD 87.50 to the AFP, plus USD 10.00 INCAF training levy if it has ten or more staff: USD 172.50 on top of the salary. The employee’s contributions, USD 30.00 and USD 72.50, are withheld from the salary.1
The January payment (Quincena 25)
A law approved on 14 January 2026 provides for a supplementary payment of 50% of the monthly salary each January for employees earning up to USD 1,500. It is in addition to the regular salary, is not subject to income tax, and does not generate ISSS or AFP contributions. Private employers could pay it voluntarily in 2026, with a full credit against their income tax; it is mandatory from January 2027.2,4
Frequently Asked Questions
What are the employer social security rates in El Salvador?
Employers pay 7.5% ISSS on salary up to USD 1,000 a month and 8.75% AFP on total salary. Employers with ten or more staff also pay a 1% INCAF training levy.
How much do employees contribute?
Employees pay 3% ISSS on salary up to USD 1,000 a month and 7.25% AFP on total salary, withheld by the employer.
What does an employer pay on a USD 1,000 salary?
USD 75.00 to ISSS and USD 87.50 to the AFP, plus USD 10.00 INCAF levy with ten or more staff: USD 172.50 on top of the salary.
Sources
- PwC Worldwide Tax Summaries: El Salvador, other taxes
- Decree 893 of 2023: Law of the Training Institute INCAF, Art. 19 (ILO NATLEX, PDF, in Spanish)
- PwC Worldwide Tax Summaries: El Salvador, significant developments
- Deloitte: scope of the Special Quincena 25 Law (in Spanish)
Figures checked 8 November 2026. Prepared by InvestSalvador.com for general information. It is not investment, tax or legal advice; please confirm details with a qualified adviser before acting.
