According to the “Salaries and Compensation El Salvador 2024” survey conducted by Sueldos.com, a division of the Mexican consultancy CD Consultores, a significant number of Salvadoran companies experienced an average salary increase of 6.18% from January to December 2023.
The survey, designed to provide organizations with a comprehensive understanding of their standing in the national and international salary landscape, highlighted the dynamics of salary adjustments in the country’s business sector. The tool not only evaluates salary competitiveness but also delves into factors such as turnover rates, productivity levels, and the overall quality of employee work.
Among the sectors, services saw the highest salary increase during the specified period, recording a growth of 6.71%, followed by manufacturing at 5% and commerce at 5.84%.
Notably, local commercial enterprises emerged as the frontrunners in salary increments, boasting a remarkable 7.20% increase. Companies with both local and international presence followed closely with a 5.54% rise, and those operating in the San Salvador Metropolitan Area (AMSS) reported a 6.33% increase.
Breaking down the data further, companies categorized as size II experienced the most significant surge in salaries, with an impressive 7.41% hike. Size I companies, defined as those with up to $12 million in sales and 100 employees, also saw a respectable increase of 5.12%.
Interestingly, local companies stood out by paying, on average, 2% higher salaries than the national average and nearly 9% more than their international counterparts.
While the majority of companies considered factors such as the minimum wage (68%), employee performance (60%), and inflation (52%) in determining salary increments, the survey revealed that 38% of respondents did not implement any salary increases in 2023. Additionally, 19% of companies have no plans for a salary increase in 2024.
The survey sheds light on the intricate web of salary dynamics within Salvadoran companies and underscores the varying approaches taken by businesses in addressing employee compensation amid evolving economic conditions.