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LABOR FACT SHEET
MINIMUM WAGE
Minimum wage in El Salvador is ¢ 5.25 colones per hour. At current exchange rate of ¢8,75 colones to US$1, this is equivalent to US$0.60 per hour. Minimum age is 18 years.
FRINGE
Minimum fringe benefits, including Christmas bonus, Social Security, vacations, etc., are estimated at 35 - 40% of base salary, resulting in a fully loaded direct labor cost of
US$0.85 per hour.
NORMAL HOURS
Workweek is 44 hours: 8 hours Monday through Friday, and 4 hours on Saturday. Many employers have special agreement with their workforce and work 9 hours Monday through Thursday
and 8 hours on Friday.
OVERTIME RATE
Overtime between 06:00 a.m. and 07:00 p.m. is paid at the rate of 100%; between 07:00 p.m. and 06:00 a.m. it is paid at 150%.
PROBATIONARY PERIOD
Companies may terminate a work contract during the first 30 days without paying any termination benefits.
TERMINATION OF EMPLOYMENT
Termination of a work contract is allowed for cause. Severance pay is calculated at the rate of 30 days for each year of service up to a maximum salary of $575.00 per month.
VACATIONS
15 paid vacation days plus a bonus of 30% of two weeks wages upon completion of a full year of employment.
SOCIAL SECURITY
Covers illness and disability. Provides medicines, medical services, hospitalization, surgery, rehabilitation, retirement pension, disability and family pension upon death of employee.
AVERAGE LABOR COSTS FOR APPAREL MANUFACTURING PLANTS
DIRECT LABOR
- Different activities: Cutter, skilled labor, machine operator, other labor, etc.
- Yearly: US$1,728.00
- Monthly: US$ 144.00
- Weekly US$ 33.23 / 44 hours week
- Hourly US$ 0.60
- Hourly Salary at 100% efficiency 1.09
- Legal Benefits: 68%
- Typical Voluntary Benefits 14%
INDIRECT LABOR
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Plant Manager
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$2,500-$3,000 |
| Production Manager |
$1,500-$2,500 |
| Plant Engineer |
$1,000-$1,500 |
| Quality Control Manager |
$1,000-$1,500 |
| Personnel Manager |
$1,000-$1,200 |
| Chief accountant |
$ 500-$1,000 |
| Chief Mechanic |
$1,000-$1,500 |
| Line supervisor |
$ 500 |
| Bilingual Secretary |
$ 500 |
FRINGE BENEFITS
Fringe benefits per year range as follows:
- Christmas bonus payable in December according to length of service:
- 1 to 3 years 10 days
- 3 to 10 years 15 days
- 10 years and over 18 days
- An average of
- US$47.83
- Annual vacation 15 days of salary + 30%
- Social Security 7.5% employes
- Paid holidays 10 days per year
- Severance US$144.00 (1 month per year)
OTHER BENEFITS
- Overtime rates 100% daytime/150% nighttime
- Sundays and holidays working rates Double hourly rate
- Indemnity for unjustified dismissal One month's salary for each year of service up to a maximum of approximately $575 monthly salary
REGRESAR
COST OF UTILITIES AND SERVICES
COMMUNICATIONS
A) Landline Telephone service (representative rates)
- Installation charge US$300.00
- International calls Vary according to area called
- San Salvador to United States US$0.40- $0.40 per minute
- Tolls for Central America and Panama US$0.17-$0.40 per minute
- Tolls for South America US$1.60 per minute
- Tolls for Asia, Africa, Oceania US$1.50 per minute
- Bahamas, Japan and Turkey US$0.86 per minute
B) Cellular service
- From 5 to 25 cellular lines US$5.64 Basic Charge
- US$0.17 cost per minute
- International Calls Vary according to area called
- San Salvador to U.S.-Mexico-Canada US$0.25-$0.50 per minute
- Tolls fro Central America and Panama US$0.25-$0.33 per minute
- Tolls for South America US$0.68-$0.96 per minute
- Tolls for Asia, Africa,Europe,Oceania US$1.13-$1.17 per minute
C) Facsimile rates
Facsimile transmission pays applicable telephone tolls, no service charge assessed for use of system locally or internationally.
ENERGY
Peak Hours- From 18:00-23:00 hrs. $0.106/ kwm
Remainning Hours-From 6:00-18:00 hrs. $0.085/ kwm
Valley Hours- From 23:00-6:00 hrs. $0.045/kwm
Power Kw $7.606
WATER
0 - 8 Cubic meter US$2.28
Additional Cubic Meter (more than 200) US$0.33 each
REGRESAR
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