A study by PwC El Salvador noted that wage increases in 2023 are the highest in the last five years.
The salaries of Salvadorans have increased by 4.7 percent in 2024, especially in executive areas, revealed the latest survey of the Wage Business System (SEIS), prepared for three decades by the firm PwC El Salvador.
According to this survey, increases in wages and wages in 2024 are the highest in the last five years – and are aligned with those recorded in 2023.
The salary package of Salvadoran employees consists of 79 per cent of wages, 16 per cent to variable compensation and 5 per cent to benefits in kind.
Gloria Ruano, Consrant in Compensation & Benefits Manager at PwC El Salvador, pointed out that the payroll of employees is the highest cost for organizations – so it is important to manage it efficiently.
Ruano considered that the term compensation went from referring strictly to the monthly salary. We are talking not only about wages, but also about the benefits, so it is key to also assess the level of competitiveness of these, he added.
The PwC El Salvador survey included the participation of 70 companies, of which 73 % are multinational capital and 27 % are national. The study included firms in the industry, services, commerce and financial services.
Increases by hierarchy
According to the survey, salaries for executive positions increased by 5.7 percent, a higher percentage compared to 5.5 percent reported in 2023. In this category are the positions of CEOs, general managers, regional directors, local directors, regional managers and local managers.
So far in 2024, medium-sized enterprises have reported the most significant wage increases without distribution at the hierarchical level, while in large firms the increases in compensation were recorded in professional positions.
PwC El Salvador notes that domestic companies increased wages by an average of 4 percent, while multinationals reported an adjustment of 5.4 percent.
Trade companies increased the wages of their employees by 6.9 percent this 2024, the highest rate compared to other sectors of the economy. The lowest adjustment was observed in the financial and industrial segment of 4.7 %.
This article has been translated after first appearing in Diario El Mundo