El Salvador’s President Nayib Bukele announced the submission of the Quincena 25 Law to the Legislative Assembly, a proposal aimed at strengthening household income and stimulating the national economy during January, a month that has traditionally been financially challenging for many families.
According to the president, “Quincena 25 is a concrete measure to strengthen the income of Salvadoran families and energize the country’s economy in January.” The initiative establishes a complementary payment equivalent to 50% of a worker’s monthly salary, to be paid between January 15 and 25 to public and private sector employees earning up to $1,500 per month.
The supplemental payment would not replace regular wages and would be exempt from income tax, social security contributions, and pension fund deductions. It would also be protected from wage garnishment, ensuring that the full amount reaches workers directly.
Beginning in January 2026, the Salvadoran government will fully implement the measure for all public sector employees. In the private sector, implementation will be gradual and focused on protecting employment. During its first year, participation by private companies will be voluntary and supported by a tax incentive allowing employers to deduct 100% of the granted amount from income tax.
President Bukele emphasized that the measure is designed to reach families directly, boost local businesses, and generate a positive economic impact across the country, reinforcing El Salvador’s strategy of combining social support with economic growth.