Employment
Labour Code with dollarised wages and sector minimums
The Código de Trabajo governs employment, and because the economy is dollarised all figures are in US dollars. Minimum wages are set by sector through the Consejo Nacional del Salario Mínimo, with commerce and services at USD 365 monthly.
Key rules
- The ordinary week is 44 hours; work beyond it is paid at double time.
- Aguinaldo is graduated by seniority, from 15 days' pay after one year to 21 days after ten.
- Dismissal without just cause requires 30 days' salary per year of service, with a cap tied to the minimum wage.
- Annual leave is 15 days with a 30% premium on the leave pay.
- Unions need 35 workers to form, and reinstatement is available for anti-union dismissal.
Governing law
- Código de Trabajo (Decreto 15 de 1972)Contracts, hours, dismissal.
- Ley del Seguro SocialISSS contributions and benefits.
- Ley del Sistema de Ahorro para PensionesPension contributions.
In practice
ISSS and AFP registration are mandatory and enforced. Claims go to Juzgados de lo Laboral, and the Ministry of Labour conciliation stage resolves many disputes over unpaid indemnización. Textile maquila employment is concentrated in free zones with their own inspection history.