Employ in Ecuador with ease.

Remote makes employment in Ecuador easy. With our localized contracts, easy invoice management, and best-in-class compliance, you can grow your global team with confidence.

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Facts & Stats

The Republic of Ecuador (República del Ecuador) is a sovereign democracy that boasts an increasing GDP powered by commodities like petroleum and agricultural products.

The country has seen a decline in poverty and Ecuador now hosts a competitive labor market for businesses looking to expand into South America and attract Spanish-speaking talent.

  • Capital city


  • Currency

    United States Dollar
    ($, USD)

  • Languages spoken


  • Population size


  • Ease of doing business


  • Cost of living index

    $$ (90 of 139 nations)

  • Payroll frequency


  • VAT - standard rate

    12% (0% on imported supplies)

  • GDP - real growth rate


Grow your team in Ecuador with Remote

Looking to employ workers in Ecuador? Companies hiring in Ecuador must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.

Remote can employ your team in Ecuador on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your Ecuador team. You can also pay contractors now in Ecuador with Remote in some currencies (talk to an expert now for full details).

Risks of misclassification

Like many other countries, Ecuador treats self-employed individuals or contractors and full-time workers differently and there are risks associated with misclassification.

If you're worried about whether to hire contractors or employees in Ecuador or anywhere else around the world, Remote can help. Our Solutions Consulting team are experts in preventing misclassification risks. Download our Contractor Compliance Checklist for a solid overview, then talk to our team about your specific situation.

Employing in Ecuador

The Ecuadorian Constitution and Labor Code spells out provisions for employee protections and workers’ rights at the federal level, applying to Ecuador’s workforce of 4.2 million. Employees in Ecuador enjoy protections against discrimination based on age, religion, sexual orientation, gender expression, and race.

Common questions that could come up during the hiring process include minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Ecuador.

Minimum Wage

The Ecuadorian government has set the minimum wage at:

  • $400 per month base rate, excluding social benefits, plus a 13th and 14th salary, or
  • $466.66 per month, factoring in mandatory 13th and 14th salaries prorated over the year

Payroll Cycle

For customers of Remote, all employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.

13th salary

Ecuador’s ‘13th salary’ consists of an additional monthly bonus equivalent to the proportional monthly part of one twelfth of everything received by the employee in the year. This payment can be paid once a year, but if offered it must be paid by December 22nd.

14th salary

Ecuador’s 14th salary is equal to the government monthly minimum wage ($400 for 2020) and is payable in March or August depending on the location of the workplace. The employee can request to receive it in an accumulated manner, in which case it must be paid before March 15 in the Coastal and Insular regions, and until August 15 in the Highlands and Amazon regions.

Onboarding Time

We can help you get a new employee started in Ecuador fast. The minimum onboarding time we need is only 4 working days.

Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.

For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.

Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.

Competitive benefits package in Ecuador

At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practicing “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).

Our benefits packages in Ecuador are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:

  • Health Insurance
  • Dental Insurance
  • Vision Insurance
  • Mental Health Support
  • Pension or 401(K)
  • Life and Disability Insurance

Calculate the cost to hire an employee
in Ecuador

Taxes in Ecuador

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Ecuador.

  • Employer

    • 12.15% - Social Security

  • Employee

    • 9.45% – Social security

    • 0% - Up to $11,315

    • 5% - $11,315 – $14,416

    • 10% - $14,416 – $18,018

    • 12% - $18,018 – $21,639

    • 15% - $21,639 – $43,268

    • 20% - $43,268 – $64,887

    • 25% - $64,887 – $86,516

    • 30% - $86,516 – $115,338

    • 35% - Over 115,338


VAT is known as impuesto al valor agregado (or IVA) in Ecuador and calculated at a rate of 12%. This applies to all transfers of ownership or imports of corporeal personal property, copyright, industrial property and related rights, and the provision of services.

Types of leave

Paid Time Off

Employees are entitled to 15 days of continuous annual leave, including weekends (i.e. 11 working days + 4 weekend days).

Public Holidays

Ecuadorian law mandates that employees should take the 12 public holidays off, and if the nature of the job or the employment contract requires an employee to stay on the job during a public holiday, the employer will compensate with a working day off.

Payment for public holidays depends on the agreement reached between employers and their staff, i.e., it should be pre-negotiated.

Sick Leave

Up to 2 months, at 50% of the employee’s salary.

Maternity leave

New mothers are entitled to 12 weeks of paid maternity leave, of which the employer will be responsible for 25% while social security covers the rest.

Paternity/ Parental leave

The employer is required to grant the working father a paid parental leave of 10 days for a natural birth, 15 for multiple births or birth by C-section, and 23 days if the baby is premature or has special needs.

Education leave

Employees who obtain a scholarship for studies abroad after spending more than 5 years with a company are entitled to an entire year of absence, with their salaries paid for 6 months, provided the scholarship is in a field related to the employee’s work activity.

Other leave

  • Bereavement leave: employees are entitled to one day of paid leave for the death of any 1st or 2nd-degree relative.
  • Hospitalization leave: parents are entitled to 25 days of leave if any of their children are hospitalized.
  • Adoption: adoptive parents are entitled to 15 days of leave, from the day their child is handed over to their legal custody.

Employment termination

Termination process

Employee contracts can be terminated if a reasonable just cause is established, such as dishonesty, negligence, fraud, or any other work-related offenses. That aside, notice should be provided in advance – provided both parties agree to it.

Notice period

There is no notice stipulated notice period and employers are only required to adhere to whatever agreement spelled out in the employment contract.

Severance pay

Without the appropriate termination notice, employees are entitled to receive a severance package equivalent to one month’s salary multiplied by the number of years the worker has stayed with the employer, up to 25 years.

Probation periods

A probationary period can be defined upon hiring an employee, up to a maximum of 90 days.

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