Decree n° 56 issuing the rates of minimum wages for the workers in the commerce and services sector,and in the sectors of industry and textile (maquila), of 16 May 2011.
Decree No. 15 promulgating the Labour Code (Codigo de Trabajo Diario Oficial No. 142, 31 July 1972, pp. 7062-7124) of 23 June 1972, as amended up to Legislative Decree n° 839, of 26 March of 2009.
Remarks: The provisions of this Code apply to the labour relations between the employers and the employees in the private sector, and the labour relations between the State, the Municipalities, the Autonomous and Semi Autonomous Official Communities and its workers.
However, the provisions of this Code do not apply when the labour relation between the State, the Municipalities, the Autonomous and Semi Autonomous Official Communities and its workers, it has a public character and is originated by an administratif act. To this respect, the Social Security Institute of El Salvador is considered an Autonomous Official Institution. Art.2 of the LC
Name of Act
Decree n° 54 issuing the rates of minimum wages for the agricultural sector, of 6 May 2011.
Legislative Decree No. 38 containing the Political Constitution of El Salvador (Constitucion Politica de El Salvador; Diario Oficial n° 234 Tomo: 281 Publicación 16/12/1983) of 15 December 1983, as amended up to Legislative Decree n° 36 of 27 May of 2009, (Diario Oficial n° 102, Tomo 383) of 4 June 2009.
"Worker" shall mean any employee or labourer who executes work or renders a service to and under the dependence of one or more employers in exchange for remuneration.
Labour Code Art.2,17
Employer
"Employer" shall mean any person who receives and remunerates the work executed or the service rendered by a worker.
Labour Code Art.17
Wage
"Wage" shall mean the compensation in cash the employer shall pay to the worker for services rendered according to a labour contract.
Labour Code Art.119
Minimum wage
"Minimum wage" shall mean the minimum salary sufficient to cover the material, moral and cultural needs of the worker and his family.
Labour Code Art.144
MINIMUM WAGE FIXING
Procedure
Government decides after tripartite or bipartite body discussions/recommendations
Minimum wage rates are set by the government for certain sectors following the proposal made by the National Minimum Wage Council. The government has the discretion to accept the proposal and fix the proposed rates by decree, or direct the National Minimum Wage Council to reconsider their proposal.
The National Minimum Wage Council is a tripartite institution dependant on the Ministry of Labour and Social Security. It has seven members as set forth below: three government representatives: one for the Ministry of Labour, one for the Ministry of Economy and one for the Ministry of Agriculture, two workers and two employers representatives. The National Council for Planning and Economic Coordination shall give its opinion to the National Minimum Wage Council when minimum wages are being adjusted.
Labour Code Art.149,155
Minimum wage set through decentralized collective bargaining
Wage rates can also be fixed by collective agreement. Rates fixed by collective agreement cannot be lower than minimum wages fixed by legal authority.
Labour Code Art.148, 275
Criteria
Needs of workers and their families
Yes. In order to fix the minimum wage, it shall be taken into account the material, moral and cultural needs of the worker and his family.
Political Constitution Art.38.2
Cost of living
Yes. In order to fix the minimum wage it shall be taken into account specially the cost of living and for this purpose the ordinary cost of food, clothing, accomodation, education and health for a normal family, whether in a rural or urban area.
Political Constitution Art.38.2 Labour Code Art.146
Economic development
Yes. The economic situation of the country shall be taken into account when fixing the minimum wages.
Decree n° 56 Recital III
Level of employment
Yes. In order to fix the minimum wage it shall be taken into account the characteristics of the work.
Labour Code Art.145
Other provisions
In order to fix the minimum wages it shall be taken into account the different systems of remuneration and the different areas of production.
Labour Code Art.145
Coverage
Scope
The Constitution provides that all workers are entitled to enjoy a minimum wage rate which shall be adjusted periodically. There is no general minimum wage rate that applies to all workers. Instead, minimum wage rates are set for the following sectors: commerce, services, industry, textile, clothing, agriculture, coffee, cotton and sugar cane industry.
» Minimum wage levels for specific categories of workers
» Trainees
Apprentices are entitled to the following rates of payment; not less than the 50% of the ordinary minimum wage rate during the first year, not less than the 75% during the second year, and not less than the full amount of the minimum wage rate from the third year.
Labour Code Art.69
» Domestic Workers
The salary of domestic workers shall be the agreed between the employer and the employee, and unless otherwise agreed shall comprise in addition to payments in cash, the provision of food and accomodation. Relevant provisions regarding an specific rate of minimum wage for domestic workers have been not identified.
Labour Code Art.78
» Piece-rate workers
Piece-rate workers must receive wages equal to at least the daily minimum wage
Labour Code Art.147 Political Constitution Art.38.2
» Other categories
Employers must pay the full daily minimum wage rate to workers working fewer than eight hours but more than five hours per day. In any other case, the minimum wage must be proportional to the number of hours effectively worked.
Labour Code Art.147
Level
Minimum wage level(s) in national currency
There is no general minimum wage rate that applies to all workers. Instead, minimum wage rates are set for the following sectors: commerce, services, industry, textile, clothing, agriculture, coffee, cotton and sugar cane industry.
As a reference we take the day-time minimum wage rates for the commerce and services, industry sector and textile and clothing sector.
From May 16th, 2011: Commerce and services sector: 7.47 US$ per day or 0.934 US$ per hour. Industry sector except textile and clothing sector: 7.31 US$ per day or 0.914 US$ per hour. Textile and clothing sector. 6.25 US$ per day or 0.781 US$ per hour.
Decree n° 56 Art.56
Last minimum wage update
16 May 2011
Decree n° 56 Art.1
In-kind allowances
The Labour Code provides that wage shall mean the compensation in cash that the employer shall pay to the worker for services rendered according to a labour contract.
References to in-kind allowances have been not identified. However it is expressly mentioned that the wage shall comprise all the payments in cash. Therefore, it seems that benefits paid in other manner are not considered as a part of the wage.
Labour Code Art.119
Rate of payment
» Hourly
The legislation sets out the different minimum wage rates per hour and per day.
Minimum wages shall be adjusted at least every three years. In practice its being adjusted every year.
Labour Code Art.159
Enforcement mechanisms
Labour inspection
Authorized labour inspectors ensure compliance with labour legislation. Once an infraction is noted by the Labour Inspection and before the delivery of the fine to the infractor, it takes place a procedure in which the employer has the opportunity of present his allegations.
Labour Code Art.628
Fines in national currency for non-respect of legislation
The calculation of fines is based on the seriousness of the offence, economic capacity and the number of times the offender has been found guilty of not respecting the minimum wage legislation.
According to the minimum wage rates provided by Decrees for the different sectors for the 2011, the fine for non respecting the legislation is fixed in the amount of 57.14 US$, in addition to the obligation of reimburse the worker with the due amount.
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