On July 6, 2021, the Minimum Wage National Council approved the respective decrees to increase the minimum wage for all sectors of the economy including commerce, services, industry, textile maquilas, agroindustry, and agriculture. The decrees were submitted to the Executive Branch for final approval and publication in the Official Gazette.

According to governmental authorities, the approved increase is twenty percent (20%) for all sectors and will be obligatory from August 1, 2021.

With this increase, the minimum wage for commerce, service, industrial, and agroindustrial sectors will be $1.50 an hour, $12.00 per day, $365.00 per month.  Significantly, this salary schedule is used to calculate certain government sanctions and qualifications, such as fines provided for in multiple administrative laws, entry levels for governmental authorizations, and thresholds to define types of public procurement processes.

For the textile maquila sector, the new minimum wage will be $1.12 an hour, $8.96 per day, and $272.66 per month.

The Salvadoran Government has announced that it will make use of an estimated $100 million from the Trust for the Economic Recovery of Companies (Firempresa) to subsidize minimum wages for micro, small and medium-sized businesses for twelve months.

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