Payroll Cycle
Minumum Wage
Overtime Pay
Visa Immigration

Talent Wiki - Ecuador

Your quick guide on talent and labor compliance norms in Ecuador
Talk to our experts
United States Dollar (USD)
Payroll Frequency
GDP per Capita
5317.68 USD
Employer Tax

Supplementary Guide for Employment and Expansion in Ecuador

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, Healthcare, Agricultural, Marketing, Banking and Finance, Science Technology, Engineering and Math (STEM), and Business Management

Local Universities

The top local universities of Ecuador are as follows:

Universidad Politécnica Salesiana


Ecuador : 1

World : 1680

Escuela Superior Politécnica del Litoral


Ecuador : 2

World : 1776

Pontificia Universidad Católica del Ecuador


Ecuador : 3

World : 1843

Universidad San Francisco de Quito


Ecuador : 4

World : 1865

Universidad de Las Américas


Ecuador : 5

World : 1880

Salary Data

Some of the popular jobs and their annual salaries are listed below:

Job Title Average Range (USD)
Accountant USD 940
Financial Analyst USD 1,650
Business Development Manager USD 2,180
Customer Service Manager USD 1,750
Developer/Programmer USD 1,270
Sales Representative USD 840
General Manager USD 2,270

Talent Sourcing Tips

Top Local Job Boards: 

LinkedIn, Jora, Indeed, Jobrapido, Jobomas, JobisJob, Neuvoo, Bumeran, Opcionempleo

Number of LinkedIn users:


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 Years Day National Holiday
28 Feb Carnival National Holiday
1 Mar Carnival National Holiday
15 Apr Good Friday National Holiday
1 May Labor Day National Holiday
2 May Day off for Labor Day National Holiday
23 May Battle of Pichincha National Holiday
12 Aug Day off for Independence Day National Holiday
9 Oct ​​Independence of Guayaquil National Holiday
10 Oct Day off for Independence of Guayaquil National Holiday
3 Nov ​​Independence of Cuenca National Holiday
4 Nov Day off for All Souls' Day National holiday
5 Dec Holiday for Foundation of Quito Provincial Holiday
6 Dec Foundation of Quito Provincial Holiday
25 Dec Christmas Day National holiday


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. 

Know More

Minimum Wage:

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

Know More

Overtime Pay:

Ecuador operates on a five-day, 40-hour work week, with overtime paid as follows:

Overtime Period Compensation
For regular day hours Premium of 25%
Between midnight and 6:00am Premium of 100%
Sundays and Public Holidays Premium of 100%

Only four hours per day and twelve hours per week of overtime are allowed. 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.

Know More

Health Examination Clause


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.
Talk to our experts


Employer Payroll Tax:

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

Employee Payroll Tax:

Tax Rate Contribution
9.45% Social Security

Employee Income Tax: 

Algeria follows a progressive income tax structure for individual taxpayers.

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

Termination Process

When an employee's employment is terminated, the process varies according to the type of contract and reason for termination.

Notice Period

In Ecuador, the notice period is not legally stipulated but is usually specified in the employment contract.

Severance Pay

The Ecuadorian Labor Code requires compensation for an employment termination relationship without a cause.

Severance pay is equivalent to:

Tenure Severance Pay
Greater than or equal to 6 months 1 month of remuneration
Greater than or equal to 9 months 2 month of remuneration
Greater than or equal to 1 Year 3 month of remuneration
Greater than or equal to 4 Years 6 month of remuneration
Greater than or equal to 5 Years 7 month of remuneration
Greater than or equal to 10 Years 12 month of remuneration
Greater than or equal to 20 Years 22 month 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.

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.

Know More
Streamline payroll and compliance for your international workforce
Get Started