Ecuador
Make employment in Ecuador easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Ecuador, all in one easy-to-use platform.
- Capital City
Quito
- Currency
United States Dollar ($, USD)
- Languages
Spanish
- Population size
17,300,000
Facts & Stats
- Capital City
Quito
- Currency
United States Dollar ($, USD)
- Languages
Spanish
- Population size
17,300,000
- Ease of doing business
Medium
- Cost of living index
$$ (90 of 139 nations)
- Payroll frequency
Bimonthly/Monthly
- VAT - standard rate
12% (0% on imported supplies)
- GDP - real growth rate
0.1%
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.
Grow your team in Ecuador with Remote
Want to employ workers in Ecuador? Companies hiring in Ecuador are typically required to either own a local legal entity or work with a global employment platform like Remote that can legally provide employment services in the country.
Remote can employ team members in Ecuador and keep you compliant. Remote can hire, onboard, and pay your Ecuador team so you don't have to set up local HR services in the region. Remote also makes it easy to pay contractors in Ecuador. now to get started or talk to an expert for more details.
Risks of misclassification
Ecuador, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Ecuador may lead to fines and penalties for the offending company.
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 $460.
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 5 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.
11 Public holidays
Want to see and manage all holidays? Sign up for our free HRIS!
Effortless HR Ecuador: Take the Tour
Competitive benefits package in Ecuador
At Remote, we’re passionate about helping you craft the best possible employee experience for your team. We are leading the way in developing globally competitive benefits programs. This means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive, and that your company has the localized expertise needed to attract and keep the best global talent.
Our benefits packages in Ecuador are tailored to fulfill the local needs of 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
Fair Pricing in Ecuador
Employer of Record
Hire and pay your global team
Starting at $599/month
for annual plans
Top features
Satisfaction guaranteed
No deposits or hidden fees
Zero onboarding or offboarding fees
Compliant equity incentives support including withholding and reporting
Built-in security and compliance
Fast onboarding (average 2-3 days)
Flexible, localized benefits
Contractor Management
Compliantly onboard and pay contractors
$29
per contractor/month
Top features
Only pay for contractors you actively work with
Work with contractors in 200+ countries and territories
Create, edit, and sign tailored, localized contracts
Approve contractor invoices with one click or auto-pay
Transparent payments with complete visibility
Payroll
Consolidate your multi-country payroll
$29
per employee/month
Top features
Simplify: Comprehensive platform that integrates all payroll functions
Support: Personalized assistance with a dedicated team and specialists
Accuracy: Test runs and parallel pay runs before implementation
Compliance: Adhere to local labor laws in every country
Timeliness: Accurate and on-time payroll with labor authority reporting handled
Experience: Seamless payroll with easy access to payslips and expenses
Top features
Guided onboarding and offboarding
Employee profile and document management
Time and attendance (time off and tracking)
Expense management and reimbursement
Employee self-serve on the platform and mobile app