A. M. 
The Legislative Assembly approved Ley Quincena 25, a new measure aimed at strengthening workers’ income, stimulating domestic consumption, and supporting the country’s economic activity. The initiative was approved with 59 votes and was presented by President Nayib Bukele as part of a strategy to alleviate the financial pressure faced by salvadoran families at the beginning of each year.
The law establishes the delivery of a supplementary income equivalent to 50% of the monthly salary, which will be paid between January 15 and 25. This benefit is aimed at public and private sector workers who earn up to US$1,500 per month and does not replace their regular salary.
One of the key points of the law is that this additional payment will not be subject to income tax deductions, contributions to the Instituto Salvadoreño del Seguro Social (ISSS), or contributions to Administradoras de Fondos de Pensiones (AFP). Furthermore, the amount awarded cannot be seized, guaranteeing that it reaches the beneficiary in full.
During the legislative debate, it was emphasized that the measure would have a positive impact on most of the salaried population. According to the presentations in plenary session, the benefit would reach approximately 94% of workers, generating a multiplier effect in commerce, services, and small and medium-sized businesses, especially at the local level.
Deputy Christian Guevara, head of the Nuevas Ideas party and president of the Finance Committee, explained that the law responds to a recurring economic reality. He noted that january is typically a challenging month for family finances due to increased expenses in december, and that the Ley Quincena 25, aims to address this situation in a structural and sustainable way, while simultaneously boosting the circulation of money in the national economy.
The application of the law will have a differentiated approach depending on the sector. The central government will be the first to implement it on a mandatory basis for all public employees starting in january 2026. In the private sector, adoption will be gradual. During the first year, the payment will be voluntary, but companies that choose to offer it will receive a tax incentive, consisting of a 100% deduction of the amount paid from their Income Tax.
The legislation also includes special provisions to protect workers. In cases where an employment contract is terminated due to the employer’s liability or when a worker is dismissed without legal cause before january 25, the individual will be entitled to receive the additional financial compensation established by law.
The approval of the Ley Quincena 25 joins other legislative decisions promoted in recent years to support the population’s income, such as the advance payment of the Christmas bonus, the provision of pensions and Christmas bonuses to retirees, and measures related to child support obligations. With this new regulation, authorities seek to consolidate a system of direct support for workers and boost consumption during key times of the year.
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