Bukele Proposes Income Tax Exemption for Salaries Up to $550 to Support Salvadoran Families
On April 30, 2025, President Nayib Bukele announced that he has submitted a proposal to El Salvador’s Legislative Assembly to extend the income tax exemption to all salaries up to $550 per month. This measure is designed to directly benefit more than 100,000 Salvadoran families, particularly those with lower incomes.
Bukele emphasized that the initiative will not only provide immediate financial relief but also serve as a fiscal incentive for employers to raise wages in the lowest salary brackets, including those already earning above the minimum wage. By expanding the tax exemption threshold, the government aims to encourage salary increases, improve household purchasing power, and support economic stability for families most in need.
This proposal is part of Bukele’s broader strategy to make the tax system more equitable and to ensure that Congress supports policies prioritizing the welfare of ordinary citizens. If approved, the measure is expected to have a significant positive impact on El Salvador’s working-class families.
