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Ecuador Employment Guide

Your quick guide on talent and labor compliance norms in Ecuador




United States Dollar (USD)



Payroll Frequency

Monthly or Bi-monthly

GDP per Capita


Employer Tax


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 Map

Local Universities

The top local universities in Ecuador are as follows:

Ecuador Uni1

Universidad de Guayaquil


Local: 1

World: 595

Ecuador Uni2

Escuela Superior Politécnica del Litoral


Local: 2

World: 1,269

Ecuador Uni1

Universidad Politécnica Salesiana


Local: 3

World: 1,520

Uni 4 Ecuador

Universidad Central del Ecuador


Local: 4

World: 1628

Uni5 Ecuador

Escuela Politécnica Nacional


Local: 5

World: 1659

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
Ecuador Talentsource

Talent Sourcing Tips

Top Local Job Boards

LinkedInJobrapido, Jobomas, JobisJob, Neuvoo

Number of LinkedIn users

4,071, 000

Top Recruitment Agencies

Adecco, Manpower,

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 employment 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
1 Jan New Year’s Day National holiday
12 Feb Carnival National holiday
13 Feb Carnival National holiday
29 Mar Good Friday National holiday, Christian
1 May Labor Day / May Day National holiday
3 May Day off for Labor Day / May Day National holiday
24 May The Battle of Pichincha National holiday
9 Aug Day off for Independence Day National holiday
10 Aug Independence Day National holiday
9 Oct Independence of Guayaquil National holiday
11 Oct Day off for Independence of Guayaquil National holiday
31 Oct Day off for All Souls’ Day National holiday
4 Nov Day off for Independence of Cuenca National holiday
6 Dec Foundation of Quito Local holiday
25 Dec Christmas Day National holiday, Christian

Employee Leaves

Type of Leave Duration Mandatory
Annual Leave 15 days Yes
Sick Leave Based on requirement Yes
Maternity Leave 12 weeks Yes


Payroll 1

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.

Payroll 2

Minimum Wage

The Ecuadorian Government adjusts the minimum wage annually. Currently, the minimum wage is USD 425 per month.

Payroll 3

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:


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.


Employer Payroll Tax

Type of Contribution Contribution
Social Security 12.15%
Reserve Fund (Not included in total cost as not due until after 1 year) 8.33%

Employee Payroll Tax

Type of Contribution Contribution
Social Security 9.45%

Employee Income Tax

Annual Taxable Income Tax on excess
From 0 to 11,310 0%
From 11,310.01 to 14,410 5%
From 14,416.01 to 18,018 10%
From 18,018.01 to 21,630 12%
From 21,630.01 to 31,630 15%
From 31,630.01 to 41,630 20%
From 41,630.01 to 51,630 25%
From 51,630.01 to 61,630 30%
From 61,630.01 to 100,000 35%
Above 100,000.0 37%


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.

Offboarding & Termination

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.

Ecuador Visa
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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 & 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.