Monday, 29 November 2021 16:56

Payment of Christmas bonus in El Salvador

Written by Evelyn Alas

According to Monica Machuca, Senior Manager of legal services of EY, in El Salvador every employer is obliged to give its workers a bonus for each year of work as Christmas bonus. To estimate the calculation of the Christmas bonus, the salary earned and the years of seniority in the company must be known.

Article 198 of the Labor Code establishes that the Christmas bonus is calculated as follows:

For workers with one to three years of seniority in the company are entitled to the equivalent of 15 days of salary as Christmas bonus.

For employees with between three and 10 years of seniority in the company, they are entitled to the equivalent of 19 days of salary as Christmas bonus.

Employees with more than 10 years of seniority in the company are entitled to the payment of 21 days of salary as Christmas bonus.

The formula to be applied is as follows: monthly salary divided by 30 days times the number of days corresponding to Christmas bonus according to the above mentioned information.

According to the law, this payment must be made between december 12 and 20 of each year. If the Christmas bonus is not paid correctly or within the established time, the employer may be subject to fines imposed by the Ministry of Labor and must also comply with the payment of the Christmas bonus to its workers.