A. M. The minister of Labor, Rolando Castro, announced the development of a technical proposal to address the phenomenon of informality in the salvadoran economy, within the framework of the National Minimum Wage and Labor Council. This initiative seeks to encourage the formalization of national enterprises as part of a comprehensive strategy to strengthen the economy and improve labor conditions in the country.
The official acknowledged that informality is a common characteristic in Latin America and that El Salvador is no exception. For this reason, work will be carried out with the technical support of specialists from the International Labor Organization (ILO) to design an effective tool to motivate entrepreneurs to join the formal sector of the economy, with concrete benefits for its growth and sustainability.
The proposal will be developed in coordination with genuine business associations, workers’ representatives, and the Government, through the respective labor councils. It will be a collective construction that gathers the contributions of the national productive fabric, under an approach of dialogue and consensus that guarantees its legitimacy and applicability.
According to Castro, this strategic tool will be submitted to the President of the Republic once finalized, for review, approval, or modification. It is expected to lay the foundations for a structural transformation of the labor market, which will increase productivity, broaden the tax base and improve access to social security.
With this effort, the Government seeks to lay the foundations for a more inclusive, formal, and dynamic economy that will generate quality jobs and strengthen the country’s competitiveness in the medium and long term. Formalization will be key to achieving sustainable and equitable development for the benefit of all sectors.
