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Hiring guidelines in Ecuador
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Hiring guidelines in Ecuador

  • Pay & taxes
  • Leave policy
  • Termination
  • Time-off
  • Additional info
Minimum Wage Requirements
The minimum wage is USD 450 per month.
Individual Income Tax
The individual income tax ranges from 0% to 37%. Income tax is calculated according to progressive rates.
Payroll Cost
The employer cost is generally estimated at 12.5% of the employee's salary during the first year of employment, and approximately 20.5% of the employee's salary during and after the second year:
  • Social Security - 12.15%
  • Reserve Fund - 1-month salary, calculated as 8.33% of the annual salary (paid from the second year of employment)
  • 13th month salary (Christmas Bonus) - 1 month salary, calculated as 8.33% of the total salary earned between the period from December of the previous year to November of the current year.
  • 14th Salary (Educational/School Bonus) - 1 monthly minimum wage (currently USD 450)
  • A profit-sharing bonus - 15% of the corporate net income divided among all the company’s employees
  • One-off Mandatory Wet Ink Employment Agreement Handling Fee - USD 80
Overtime Pay & Maximum Hours
Standard working hours are 8 hours per day, 40 hours per week. The standard work week is from Monday to Friday.