Beginning June 1, 2025, El Salvador will implement a 12% increase to the minimum wage following a unanimous agreement between employers, workers, and the government—marking the first such consensus in 14 years.
The new wages apply to sectors like industry, commerce, maquila, and agriculture. For example, monthly pay in industry and commerce will rise from $365 to $408.80, while in the textile maquila it will increase from $359.16 to $402.32. In agriculture, wages will go from $243 to $272.
Minister of Labor Rolando Castro noted that multiple proposals were reviewed, including ones suggesting gradual increases or hikes up to 40%. “After technical analysis, the President’s plan was seen as the most balanced,” he explained.
The increase, approved on May 23 and published in the official gazette, will also affect benefits such as bonuses and severance pay. Castro assured that micro and small businesses were considered carefully in the process. “We reached this decision through dialogue, not imposition,” he said.
The government has also activated a monitoring plan to prevent unjustified layoffs and speculative price hikes. “We already have reports of abuse and will act firmly,” said Castro, warning that fines for unjustified dismissal will now be higher due to the wage increase.
The National Minimum Wage Council will continue meeting regularly, with the next review scheduled for 2028.