El Salvador Tax Tables 2024 - Tax Rates and Thresholds in El Salvador

This page contains the tax table information used for the calculation of tax and payroll deductions in El Salvador in 2024. These tax tables are used for the tax and payroll calculators published on iCalculator™ SV, these tools are provided for your free use on our website. If you would like additional tax table information added to the tax calculators for El Salvador or would like to add to or suggest amendments to the information herein then please contact us.

El Salvador Personal Income Tax Tables in 2024

The Income tax rates and personal allowances in El Salvador are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the El Salvador Tax Calculator 2024.

In El Salvador, social security deductions made by employees are generally not deductible for the purpose of calculating taxable income. This means that when individuals compute their income tax, the contributions towards social security are not subtracted from their gross salary. Instead, these contributions are considered a separate obligation, with the taxable income calculation based primarily on gross earnings before any social security deductions are applied.

El Salvador Social Security and Payroll Deduction Rates in 2024

In El Salvador, the social security and payroll deduction system is a crucial part of the employment landscape, designed to provide a safety net for employees across various life events. These deductions from salaries fund essential services and benefits, including healthcare, pensions, and risk coverage. This system is supported by contributions from both employees and employers, underpinning the social welfare framework of the country.

Pension Contributions

Pension contributions are a key component of social security in El Salvador, aimed at providing income support to individuals upon retirement. Both employees and employers contribute to this fund, which is managed by public and private pension entities. These contributions ensure that retirees receive a pension, contributing to financial stability in their later years.

Healthcare Contributions

Healthcare contributions fund the Salvadoran Institute of Social Security (ISSS), which provides medical and hospital services to employees and their families. This includes preventive care, treatments, surgeries, and medications. The system aims to ensure access to quality healthcare services, reducing the financial burden of medical expenses for workers.

Risk Coverage (Occupational Hazards)

Contributions for risk coverage protect employees against accidents and illnesses arising from their work environment. This includes compensation for work-related injuries, rehabilitation services, and financial support during periods of incapacity. Employers primarily fund this coverage, safeguarding employees' health and income.

Maternity and Paternity Benefits

Social security contributions also provide maternity and paternity benefits, supporting parents during and after the birth or adoption of a child. These benefits include paid leave and medical care, ensuring that parents can care for their newborns without losing their income.

Unemployment Benefits

While El Salvador's social security system does not traditionally include unemployment benefits as found in some countries, there are severance payments and other protections in place for workers who lose their jobs. These measures offer a financial cushion, helping affected employees transition between jobs.

Challenges and Reforms

The social security system in El Salvador faces challenges, including financial sustainability and coverage expansion. Efforts are underway to reform the system, aiming to enhance its efficiency, extend coverage to more workers, and ensure its long-term viability. These reforms are crucial for improving social protection and supporting the well-being of the Salvadoran workforce.

The contributions made by employees and employers to El Salvador's social security system play a vital role in ensuring the health, financial security, and overall welfare of the working population and their families. By providing a comprehensive range of benefits, the system supports individuals through various stages of life and work, contributing to a stable and secure society.

El Salvador VAT Rates in 2024

VAT rates for El Salvador are reviewed annually, you can use the VAT Calculator to calculate VAT due in El Salvador or use the Reverse VAT Calculator to calculate the net cost of goods/services after deducting VAT.

Historic Tax Tables supported for El Salvador

The following tax tables are supported by iCalculator™ SV as part of the suite of free tax tools we provide for El Salvador.