El Salvador Employment Settlement Calculator
When an employment relationship ends in El Salvador, the settlement brings together the items the employer must pay: severance (indemnización) for years of service, pending vacation, proportional Christmas bonus (aguinaldo), and unpaid salary. This calculator estimates each item in dollars from your monthly salary, seniority, and pending days or months, so you know what you should receive when closing your employment.
With a salary of $800, 3 years and 6 months of seniority, 7 pending vacation days, and 6 months of proportional aguinaldo:
- Estimated severance: $2,800
- Pending vacation: $186.67
- Proportional aguinaldo: $400
- Estimated total settlement: $3,386.67
Severance dominates the total: it equals one month of salary per year of service (prorated by months).
Formula
Severance = monthly salary × (years + months/12 of service)
Pending vacation = (salary ÷ 30) × pending days Proportional aguinaldo = monthly salary × (period months ÷ 12) Unpaid salary = (salary ÷ 30) × unpaid worked days
Under the El Salvador Labor Code, severance equals one month of salary per year of service (with rules varying by termination type); the calculator applies it prorated by months for the estimate.
Step-by-step example (default values)
- Seniority = 3 years 6 months = 3.5 years
- Severance = 800 × 3.5 = $2,800
- Daily salary = 800 ÷ 30 = $26.67; vacation = 26.67 × 7 = $186.67
- Proportional aguinaldo = 800 × 6/12 = $400
- Total = 2,800 + 186.67 + 400 = $3,386.67
Scenario table (same engine logic)
| Seniority | Severance | Vacation | Aguinaldo | Total estimate |
|---|---|---|---|---|
| 1 year | $800 | $186.67 | $400 | $1,386.67 |
| 3y 6m | $2,800 | $186.67 | $400 | $3,386.67 |
| 5 years | $4,000 | $186.67 | $400 | $4,586.67 |
| 10 years | $8,000 | $186.67 | $400 | $8,586.67 |
Reading the result
Seniority drives the El Salvador settlement: each year of service adds a full month of salary in severance, so a 10-year worker receives more than double a 3-year one. Pending vacation and proportional aguinaldo complete the total and depend on what you have accrued at the exit date.
The amount changes with the termination type: resignation, dismissal with or without just cause, and agreements between the parties can alter which items apply and in what amount. That is why the calculator works best as an initial estimate to negotiate from, not a final invoice.
This tool is an educational estimate based on the El Salvador Labor Code; it does not replace the official payroll calculation or legal advice. Items, caps, and rules can vary by termination type and current regulations. Validate your case with the Ministry of Labor or a professional before signing agreements.
FAQ
Severance for seniority, pending vacation, proportional aguinaldo, and unpaid salary. At $800 and 3.5 years, the estimated total is $3,386.67.
As one month of salary per year of service, prorated by months. At $800 and 3.5 years: 800 × 3.5 = $2,800.
Not necessarily. The termination type (resignation, justified or unjustified dismissal, agreements) changes which items are paid. Use this as an estimate and confirm your case with labor advice.
Yes, vacation not enjoyed at the exit is paid at the daily salary per pending day: $26.67 × 7 = $186.67 in the example.
No. It is prorated to the months of the period accrued. In the example, 6 of 12 months = $400 on an $800 salary.
Related calculators
- El Salvador net salary: take-home pay after AFP, ISSS, and income tax
- El Salvador Christmas bonus: aguinaldo days by seniority
- El Salvador social security: ISSS and AFP details
- El Salvador income tax: income tax on your salary