Bukele proposes to the Congress of El Salvador a law for the extra payment of 50% of the salary to workers in January

San Salvador.- The President of El Salvador, Nayib Bukele, announced on Tuesday that he sent to Congress, with a large officialist majority, a bill to grant workers an extra payment equivalent to 50% of the first half of January, which companies can deduct from tax payments in 2026. “It’s a concrete measure to strengthen the income of Salvadoran families and boost the country’s economy in January, a month that is historically difficult for many households,” Bukele wrote on X. The so-called Quincena 25 Law implies “a complementary income equivalent to 50% of the monthly salary”, which “will be paid between January 15 and 25 to public and private sector workers who earn up to 1,500 dollars”

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He added that this payment will be exempt from income tax, social security, and pension savings contributions. “As of January 2026, the Government will be the first to comply with this law with all public employees. In the private sector, the implementation will be gradual, responsible, and focused on protecting employment,” Bukele said. He added that this year “the payment will be voluntary” for private companies, but “it will have a tax incentive that will allow companies to deduct 100% of the amount granted from Income Tax”. An explanatory video shared by Bukele in this same publication indicates that payment will be mandatory for private companies by 2027.