El Salvador Monitoring Holiday Bonus Compliance With Nationwide Labor Inspections.

The Ministry of Labor and Social Welfare (MTPS) announced it will deploy 700 inspectors nationwide to verify compliance with Christmas bonus payments, whose payment window began on October 20 and runs until December 20.

The measure follows a reform to the Labor Code approved by the Legislative Assembly on October 15, which allows employers to advance the payment of the bonus. The deadline remains unchanged, but private companies can choose to pay earlier if funds are available.

Labor Minister Rolando Castro clarified that the update to the law does not alter the calculation process. “I want to make it clear: the reform carries no setbacks, the calculation will still be made based on December, as it has always been historically. No employer can interpret this as justification to reduce the bonus. We will deploy no less than 700 staff nationwide,” he stated.

Castro also confirmed that public sector employees received their bonus on October 24, following an instruction from President Nayib Bukele. “Having liquidity available, the Government said: ‘Instead of keeping the money in the bank, I prefer to give it to the workers.’ It has been delivered to the entire Executive Branch as ordered by the president,” he said.

The ministry argues that the reform benefits small businesses by extending the payment window from eight days to two months, giving companies more flexibility to manage their finances.

According to the Labor Code, the amount of the Christmas bonus is calculated based on years of service with the same employer: workers with 1 to 3 years of service receive the equivalent of 15 days of salary; those with 3 to 10 years receive 19 days; and employees with more than 10 years are granted 21 days. For workers with less than a year of service, the payment is proportional to the time worked up to December 12.