With the August holidays approaching, companies need to plan their schedules, shifts, closures, and payroll in advance. However, the same question comes up every year: Are all private-sector workers entitled to time off from August 1 through August 6? The answer is no.
The term “August vacation” is commonly used to refer to this holiday period, but legally it does not mean that all workers are entitled to six days of vacation. The number of days that must be granted as time off depends on the sector to which the employee belongs and, in the case of private companies, on the location where the employee works.
What are the public holidays for the private sector in 2026?
Article 190 of the Labor Code establishes the August 6 as a paid holiday throughout El Salvador.
In addition, it recognizes the following as holidays: August 3 and 5 in the city of San Salvador. The Ministry of Labor and Social Welfare has applied this provision to private-sector workers employed in the district of San Salvador.
In 2026, the dates are as follows:
- Monday, August 3: A public holiday for private-sector workers in San Salvador.
- Wednesday, August 5: A public holiday for private-sector workers in San Salvador.
- Thursday, August 6: a national holiday for private-sector workers.
This means that a company whose workplace is located outside San Salvador You should not automatically assume that August 3 and 5 are mandatory holidays.
The Tuesday, August 4, 2026, does not, in and of itself, constitute a mandatory general holiday for private-sector workers, however, some companies choose to close for the entire week, grant annual leave, implement more favorable internal policies, or provide paid time off. These measures are valid as employee benefits, but should not be confused with the public holidays established by law.
When a company grants additional days off, it is advisable to specify in writing whether they are:
- Annual vacation.
- Paid leave.
- Compensatory days.
- Employee benefits provided by the company.
- Leave of absence with pay.
Clear communication prevents future disputes regarding pay cuts, vacation balances, or make-up hours.
How should a public holiday be paid?
A public holiday is a paid day off.
Article 191 of the Labor Code provides that payment must be made at the basic wage rate. When wages are agreed upon on a weekly, biweekly, monthly, or other longer-term basis, it is presumed that the compensation for the public holiday is already included in the agreed-upon wages.
For example, a person who receives a monthly salary should not have their pay docked for failing to report to work during a legally mandated holiday.
Nor should the public holiday be automatically deducted from the employee's annual vacation time. The two are distinct in nature: the public holiday is provided directly by law, while vacation time is accrued after meeting the requirements set forth in the Labor Code.
What happens if an employee works on a holiday?
As a general rule, work on a public holiday must be performed by mutual agreement between the employer and the employee. When an employee works on a public holiday, he or she is entitled to overtime pay consisting of: The regular wage for the workday, plus a 100 % surcharge on that wage.
In practical terms, work performed on a holiday is paid at double the rate of a regular workday. The Ministry of Labor has reiterated that work performed on a holiday must be paid with a 100 % premium.
When an employee receives a monthly salary, it should be assumed that the regular holiday pay is already included in that salary. Consequently, the payroll must reflect the corresponding additional pay for having worked that day.
It is not correct to deduct the day and then pay only for a regular workday, nor is it correct to assume that a holiday worked can automatically be offset by any other public holiday without making the corresponding legal payment.
What happens if you also work overtime?
If, in addition to working on a holiday, an employee works beyond their regular workday, overtime must be calculated based on the overtime rate applicable to the holiday. This means that the company must not calculate those hours as if they had been worked on a regular workday.
Properly configuring the timesheet is especially important for companies that operate on rotating shifts, night shifts, or continuous shifts.
Which businesses can continue to operate?
There are certain activities that, by their very nature, cannot be completely suspended on a holiday.
Article 193 of the Labor Code covers, among others, the following cases:
- Companies that provide public or essential services to the community.
- Entertainment or recreational establishments.
- Establishments that sell essential goods, subject to the legally established restrictions.
- Hotels, restaurants, and snack bars.
- Activities whose interruption could harm the public interest or public health.
- Activities that, for technical or practical reasons, require continuity.
In these companies, the employer may designate the number of employees necessary to maintain the minimum required service. However, the fact that operations can continue does not eliminate the right to special compensation: Those who work during the holiday must receive the pay established for that day.
The company must ensure that shift assignments are based on actual operational needs and must keep records of schedules, agreements, and payments made.
What happens if the holiday falls on the weekly public holiday?
When a holiday falls on a weekly public holiday and the employee does not work, he or she is entitled only to the corresponding base pay.
If you work on that day, you are entitled to the special pay provided for the holiday and, in addition, to a paid compensatory time off.
This situation must be distinguished from the ordinary case in which a holiday falls on a regular workday. Compensatory time off is not automatically granted for all holidays worked, but only under the circumstances set forth in the Code.
What about public-sector workers?
A different policy applies to the public sector. The Ministry of Labor has indicated that the leave period for the August holidays runs from August 1–6, without prejudice to those institutions and services that, by their nature, must remain operational.
For this reason, the public-sector calendar should not be automatically applied to labor relations in private companies.
Recommendations for Businesses
Before the start of August, every company should:
- Identify the applicable holidays based on the location of each workplace.
- Determine which areas can suspend operations and which need to remain open.
- Provide written notice of special schedules and shifts.
- Obtain and document the necessary agreements with the employees.
- Set up the payment for the 100 % surcharge correctly.
- Check to see if there is any overtime or compensatory time off.
- Keep records of attendance, communications, and payment receipts.
- Distinguish between legal holidays and annual leave or company benefits.
Planning ahead helps ensure business continuity, protect workers' rights, and reduce the risk of labor claims or inspections.
Holidays should not be managed solely as a calendar matter. They have direct implications for shift scheduling, payroll calculations, employment documentation, and service continuity. A clear policy—communicated in a timely manner and in compliance with the law—enables companies to operate safely during the August holidays.
At Legal Spot, we assist companies in reviewing their employment policies, organizing work schedules, calculating benefits, and ensuring compliance with employer obligations.
