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Onboarding Requirements for EOR Employees in El Salvador

Globalli ensures that mandatory registrations are completed before payroll processing.This article outlines the required onboarding documents and registrations in El Salvador and explains their purpose.

1. Employment Contract

Requirement:

An employment contract may be verbal or written; however, a written contract is strongly recommended, especially for:

  • Fixed-term contracts

  • Part-time roles

  • Positions with specific conditions

Must Include:

  • Job title and duties

  • Salary and payment frequency

  • Working hours

  • Start date

  • Workplace location

  • Contract duration (if applicable)

Purpose:

  • Establishes the legal employment relationship

  • Defines rights and obligations

  • Ensures compliance with the Salvadoran Labor Code

  • Serves as evidence in case of disputes

2. National ID (DUI) / Passport

Requirement:

  • Salvadoran nationals: Valid DUI (Documento Único de Identidad)

  • Foreign nationals: Valid passport

Purpose:

  • Verifies identity and nationality

  • Required for tax, social security, and pension registration

  • Ensures accurate personnel records

3. Work Authorization (Foreign Employees)

Requirement:

Foreign nationals must obtain appropriate work authorization and legal residency before beginning employment.

Authority:

Dirección General de Migración y Extranjería El Salvador

Purpose:

  • Confirms legal right to work in El Salvador

  • Prevents immigration violations

  • Protects employer from penalties and sanctions

Employment cannot legally commence without valid authorization.

4. NIT (Tax Identification Number)- As needed

Requirement:

Employees must provide a NIT (Número de Identificación Tributaria). In many cases, the DUI number may serve as sufficient identification for payroll purposes.

Authority:

Ministerio de Hacienda El Salvador

Purpose:

  • Enables income tax withholding

  • Required for payroll reporting

  • Ensures compliance with tax regulations

5. ISSS Registration (Social Security)

Requirement:

Employees must be registered with the Salvadoran Social Security Institute.

Authority:

Instituto Salvadoreño del Seguro Social (ISSS)

Coverage Includes:

  • Healthcare services

  • Sickness and maternity benefits

  • Workplace injury benefits

Purpose:

  • Provides access to public healthcare and benefits

  • Mandatory employer and employee contributions

  • Required before or upon employment commencement

6. AFP Pension Registration- As Needed

Requirement:

Employees must be enrolled in a pension fund (AFP – Administradora de Fondos de Pensiones).

Purpose:

  • Provides retirement savings

  • Funded through mandatory payroll contributions

  • Ensures compliance with Salvadoran pension law

Globalli must remit contributions to the employee’s selected AFP.

7. Bank Account Details

Requirement:

Employees must provide local bank account details for salary payments.

Purpose:

  • Enables compliant salary transfers

  • Ensures payroll transparency

  • Supports accounting and audit requirements

Cash payments are discouraged due to compliance risks.

8. Address & Personal Data- As Needed

Requirement:

Collection of accurate personal information, including:

  • Residential address

  • Contact details

  • Date of birth

  • Marital status (if relevant for benefits)

Purpose:

  • Maintains compliant HR records

  • Supports tax and benefit administration

  • Required for social security and pension reporting

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