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Discover global hiring strategies from leading recruitment platforms
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Speed up your global expansion! Expand smartly in 150+ countries with the #1 rated EOR globally.
Explore Multiplier EOR
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
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:
Local: 1
World: 595
Local: 2
World: 1,269
Local: 3
World: 1,520
Local: 4
World: 1628
Local: 5
World: 1659
Top Local Job Boards:
Top Local Job Boards
Number of LinkedIn users:
Number of LinkedIn users
Top Recruitment Agencies:
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 |
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.
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.
| 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 |
| Type of Leave | Duration | Mandatory |
| Annual Leave | 15 days | Yes |
| Sick Leave | Based on requirement | Yes |
| Maternity Leave | 12 weeks | Yes |
Leave Compliance
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 425 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:
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| Type of Contribution | Contribution |
| Social Security | 12.15% |
| Reserve Fund (Not included in total cost as not due until after 1 year) | 8.33% |
| Type of Contribution | Contribution |
| Social Security | 9.45% |
| 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.
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:
Ecuadorian employment laws have ensured that workers are well-covered by statutory benefits. However, employers can offer their workers additional perks such as:
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 |
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.
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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.
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Ecuador
