Easily manage employment in

Ecuador
ecuador flag

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.

Services available in this country:
Employer of Record ProductContractor Management
  • Capital City

    Quito

  • Currency

    United States Dollar ($, USD)

  • Languages

    Spanish

  • Population size

    17,300,000

Services available in this country:
Employer of Record ProductContractor Management
A view of a green valley with mountains in the background.

Facts & Stats

Ecuador
  • 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.

A city with white buildings and mountains in the background.

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

Jan
Monday, January 1, 20241New Year's Day (Año Nuevo)
Feb
Monday, February 12, 20242Shrove Monday (Lunes de carnaval)
Tuesday, February 13, 20243Shrove Tuesday (martes de carnaval)
Mar
Friday, March 29, 20244Good Friday (Viernes Santo)
May
Wednesday, May 1, 20245Labor Day (Día del Trabajador, observed day)
Friday, May 24, 20246The Battle of Pichincha (La batalla de Pichincha)
Aug
Saturday, August 10, 20247Independence Day (Día de la Independencia, observed day)
Oct
Wednesday, October 9, 20248Independence of Guayaquil (Independencia de Guayaquil, observed day)
Nov
Saturday, November 2, 20249All Souls' Day (Todo el día de almas, observed day)
Sunday, November 3, 202410Independence of Cuenca (Independencia de Cuenca, observed day)
Dec
Wednesday, December 25, 202411Christmas Day (Navidad)

Want to see and manage all holidays? Sign up for our free HRIS!

Effortless HR Ecuador: Take the Tour

Seamlessly manage your workforce, from first hire to final paycheck

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

HR Management

Manage all of your employees in one place

Free

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