Expand your global workforce in Ecuador
Your guide to the employment landscape, working customs and local labor laws in Ecuador
Capital
Quito
Currency
United States Dollar (USD)
Languages
Spanish
GDP per Capita
$6,830
Employer Tax
12.15%
Payroll Frequency
Monthly or Bi-monthly
Talent overview
Ecuador is one of South America’s most diverse countries, both geographically and economically. Ecuador’s GDP ranks seventh in Latin America and 69th in the globe. The agriculture sector has been the main driver of the country’s GDP in the last decades, with major exports such as coffee, bananas, and cocoa beans.
Major economic hubs:
Quito, Cuenca, Guayaquil
Skills in demand:
Legal, Education, Marketing, Engineering and Math (STEM), and Business Management
Ecuador
Top local universities in Ecuador
Universidad de Guayaquil
Ranking
Local: 1
World: 595
Escuela Superior Politécnica del Litoral
Ranking
Local: 2
World: 1,269
Universidad Politécnica Salesiana
Ranking
Local: 3
World: 1,520
Universidad Central del Ecuador
Ranking
Local: 4
World: 1628
Escuela Politécnica Nacional
Ranking
Local: 5
World: 1659
Where to find talent
Top Local Job Boards:
Top Local Job Boards
Number of LinkedIn users:
Number of LinkedIn users
Top Recruitment Agencies:
Top Recruitment Agencies:
Salary Data
Some common jobs with average monthly salary is mentioned below in Ecuador
| Job Title | Average Monthly Salary (USD) |
| Accountant | USD 940 |
| Financial Analyst | USD 1,650 |
| Business Development Manager | USD 2,180 |
| Customer Service Manager | USD 1,750 |
| Developer/Programmer | USD 1,250 |
| Sales Representative | USD 840 |
| General Manager | USD 2,270 |
Employ in Ecuador
Employing in Ecuador
Hiring in Ecuador has become a viable option for businesses due to the large pool of qualified workers. But just like any other country, you need important government laws and policies to keep in mind.
This section outlines the regulations you’ll have to follow when operating in this South American market, such as working hour rules, an overview of some of the requirements for work contracts, statutory benefits, and employment taxes for both companies and their employees.
Employee Contract
Verbal and written contracts are accepted in Ecuador. The contracts may be in English or any other language that the employer and employee may be able to understand. The contract should mention the type of work to be performed, the payment method, the place where the work will be done, and the duration of the contract.
Public and Provincial Holidays
| Date | Name | Type |
| January 1 | New Year’s Day | National Holiday |
| March 3 | Carnival | National Holiday |
| March 4 | Carnival | National Holiday |
| April 18 | Good Friday | National Holiday |
| May 1 | Labor Day / May Day | National Holiday |
| May 2 | Day off for Labor Day / May Day | National Holiday |
| May 23 | Day off for The Battle of Pichincha | National Holiday |
| May 24 | The Battle of Pichincha | National Holiday |
| August 10 | Independence Day | National Holiday |
| August 11 | Day off for Independence Day | National Holiday |
| October 9 | Independence of Guayaquil | National Holiday |
| October 10 | Day off for Independence of Guayaquil | National Holiday |
| November 3 | Independence of Cuenca | National Holiday |
| November 4 | Day off for All Souls’ Day | National Holiday |
| December 25 | Christmas Day | National Holiday |
| December 6 | Foundation of Quito | Local Holiday |
Employee Leaves
| Type of Leave | Duration | Mandatory |
| Annual Leave | 15 days | Yes |
| Sick Leave | Based on requirement | Yes |
| Maternity Leave | 12 weeks | Yes |
Leave Compliance
Payroll in Ecuador
Payroll cycle
Ecuador’s payroll cycle is either monthly or bi-monthly. For monthly payments, payments are given at the end of the month. While for bi-monthly payments, payments are made every 15th and the last day of the month.
Minimum wage
The Ecuadorian Government adjusts the minimum wage annually. Currently, the minimum wage is USD 470 per month.
Overtime pay
The standard working hours in Ecuador are 40 hours for a five-day workweek. Only four hours per day and twelve hours per week of overtime are allowed. The overtime is compensated as follows:
Read more
How taxes work
Employer Payroll Tax
| Type of Contribution | Contribution |
| Social Security | 11.15% |
Employee Payroll Tax
| Type of Contribution | Contribution |
| Social Security | 9.45% |
Employee Income Tax
| Annual taxable income (USD) | Income tax rate |
| 0 to 12,081 | 0% |
| 12,081 to 15,387 | 5% |
| 15,387 to 19,978 | 10% |
| 19,978 to 26,422 | 12% |
| 26,422 to 34,770 | 15% |
| 34,770 to 46,089 | 20% |
| 46,089 to 61,359 | 25% |
| 61,359 to 81,817 | 30% |
| 81,817 to 108,810 | 35% |
| Above 108,810 | 37% |
VAT
In Ecuador, the transfer of ownership or import of personal property, copyright, industrial property, and related rights is subject to a 12% VAT. No VAT is levied for the transfer of goods and the import of goods.
Bonus
13th Month Pay
In Ecuador, 13th-month pay and 14th-month pay are mandatory. It can be paid proportionally monthly or accumulated and paid at the end of the year. Bonuses are typically paid in December and again in March or April. The computation for each are as follows:
- 13th Month Pay: The employee’s total remuneration in the preceding year (including benefits, commissions, supplementary pay, and overtime pay) divided by 12 months.
- 14th Month Pay: Equivalent to one month’s minimum wage.
Employee Benefits
Ecuadorian employment laws have ensured that workers are well-covered by statutory benefits. However, employers can offer their workers additional perks such as:
- Life Insurance: Life Insurance is a great benefit to add for your employees in Ecuador. It provides financial security for your employees’ family in case of death.
- Health Insurance: Health insurance is another great perk you can give to your employees in Ecuador. It protects your employees from sickness and helps maintain good health.
Employee offboarding
When an employee’s employment is terminated, the process varies according to the type of contract and reason for termination.
In Ecuador, the notice period is not legally stipulated but is usually specified in the employment contract.
The Ecuadorian Labor Code requires compensation for an employment termination relationship without cause. Severance pay is equivalent to the following:
| Tenure | Severance Pay |
| Greater than or equal to 6 months | 1 month of remuneration |
| Greater than or equal to 9 months | 2 months of remuneration |
| Greater than or equal to 1 Year | 3 months of remuneration |
| Greater than or equal to 4 Years | 6 months of remuneration |
| Greater than or equal to 5 Years | 7 months of remuneration |
| Greater than or equal to 10 Years | 12 months of remuneration |
| Greater than or equal to 20 Years | 22 months of remuneration |
Visa and
immigration
An Ecuador Temporary Resident Visa can be obtained if a person wishes to stay and work in Ecuador for an extended period. This type of work visa is given to foreigners who have found a job offer from a company in Ecuador. The temporary resident visa is valid for two years and can be renewed before expiration.
Read more
Your employment toolkit for Ecuador
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Overtime Pay
Minimum Wage
Overtime Pay
| Overtime Period | Compensation |
| Night work | Premium of 25% as per the daytime rate, on each overtime hour |
| Before 12 am | Premium of 50% on each overtime hour |
| Between midnight and 6:00am | Premium of 100% on each overtime hour |
| Sundays and Public Holidays | Premium of 100% on each overtime hour |
When overtime is required to solve accidents caused by the employee and employees in positions of trust or managerial positions, the employer is exempt from paying overtime.
Visa and Immigration
All visa documentation must be translated in Spanish and certified by the Ecuadorian Embassy or Consulate.
If you have lived in Ecuador for at least 21 months as a temporary resident, you are eligible to apply and obtain a permanent resident visa.