Opinión legal: Ley especial “Quincena Veinticinco” (Decreto NO. 499)

 

Relevant Aspects:

• Not a change in payment dates: "Quincena 25" indicates an extra payment equivalent to 50% of the salary.
• Payment Dates: The payment must be made between January 15th and January 25th.
• Private Sector Incentive: In 2026, the government "pays" for the benefit indirectly through tax credits for companies that choose to grant it voluntarily.

The Special Law Quincena Veinticinco is of a social and economic nature in El Salvador, providing a complementary economic benefit independent of the ordinary salary. This law creates a unique additional income. 

 

Key Concepts:

According to Art. 1, "Quincena Veinticinco" is defined as:

• Complementary Income: It does not substitute salary or other benefits.
• Independent: It is separate from the Christmas bonus (aguinaldo), ordinary salary, or existing additional compensations.
• No Deductions: No social security (ISSS), pension (AFP), or any other type of withholding or deduction may be applied.

 

Beneficiaries and Requirements (Art. 2)

• Salary Cap: Employees whose basic or nominal salary is equal to or less than $1,500.00 USD.
• Amount: The benefit is equivalent to 50% of the basic salary perceived at the time of payment.
• Labor Continuity: Same requirements as the Christmas bonus (aguinaldo) according to the Labor Code or the Additional Compensation Law.

 

Requirements for Christmas Bonus (Eligibility Basis)

Since the Special Law derives from the aguinaldo requirements, the following from the Labor Code (Arts. 196-202) is fundamental:

• Length of Service: Every worker with one year or more of service is entitled to the full payment. Those with less than one year are entitled to a proportional amount based on time served.
• Calculation Period: The right is computed from December 12th of one year to December 11th of the following year.

 

Application Calendar and Mandatory Status (Art. 6)

The law establishes a staggered implementation:

• Year 2026 (Transitional):
  • Public Sector: Mandatory.
  • Private Sector: Voluntary. Employers who choose to pay it in 2026 receive a tax credit for 100% of the amount paid, deductible from Income Tax.
• Year 2027 and beyond:
  • Mandatory for all sectors (Public and Private).
  • Payment Window: Must be settled between January 15th and January 25th of each year.

 

Tax Treatment and Legal Protection (Art. 4)

• Non-Taxable Income: The amount received does not count toward the employee's Income Tax calculation.
• Inmunity from Seizure: The benefit cannot be subject to garnishment or attachment (embargos)
• Employer Deductibility: Amounts paid are tax-deductible expenses for the company, provided they are properly documented.

 

Termination Cases (Art. 3)

If a contract is terminated with employer liability or if there is an unjustified dismissal before or on January 25th, the worker retains the right to the benefit payment (or its proportional part), following the aguinaldo rules.

 

Outsourcing, Free Zones, and International Services

• Staff Outsourcing: Companies hiring outsourcing services can obtain the tax credit if they pay the benefit to the subcontracted company for distribution to the workers.
• Free Zones and International Services: If the tax credit exceeds the tax due, they may request a negotiable and transferable Tax Credit Certificate. 

 

Special Status of the Law (Art. 8)

The law is declared of public interest and special character, it prevails over other general laws (such as the Labor Code) that may contradict it regarding this benefit.

 

La Quincena Veinticinco es una oportunidad fiscal sin precedentes en El Salvador, pero su implementación requiere precisión para asegurar el crédito tributario del 100%. ¿Quieres saber cómo aplicar este beneficio en tu empresa de forma estratégica y sin errores? Contáctanos y aseguremos juntos que el 2026 sea el año de tu mayor ventaja competitiva.