Hire and pay employees in
Ecuador, hassle-free

• 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 460)
• 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

These costs are provided as estimates and are intended solely for general informational purposes. To fully comprehend all associated costs and fees related to the terms of any employment agreement for this country, please contact our Sales team for a quote.

Employees are entitled to paid sick leave for up to 70 days. This leave is paid at different rates and by different payers depending upon length:

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.

Terminations in Ecuador can be complex. There is at-will termination in Ecuador for employers (outside the probation period) and will include higher severance payment.

Compliant terminations include:

• Voluntarily by the employee
• By mutual agreement
• Unilaterally by the employer based on:
  • probation period
  • objective grounds
  • disciplinary dismissal
  • performance due to unsuitability for the job
• By the expiration of the contract

In Ecuador, all employees who are terminated without cause are entitled to severance pay. Severance pay is 30 days of salary per year of service up to 25 months based on compensation.

To protect you from unforeseen financial risks arising from terminations, Deel applies a Severance Accrual to all employment agreements in this country.  Deel has extensive expertise in managing litigation risk globally and our Severance Accrual calculation is based on the prevailing common-law or statutory entitlements and local best practices. In the event your employee resigns or is not entitled to severance, all unused amounts will be returned to you.

Full-time employees are entitled to 15 calendar days of paid time off (PTO) per year. On the Deel platform, employees will see an allotment of 11 days PTO as this is shown in business days. PTO accrues monthly at 1.25 days per month after 12 months of work. Paid time off includes Saturdays and Sundays.

The length of time off increases 1 day per year after 5 years of employment, up to 30 calendar days.

Part-time employees are entitled to the same vacation allowance as full-time employees of 15 calendar days.

Ecuador celebrates both 10 national and multiple regional holidays based on the location of the employee.

National public holidays include:

• New Year Day
• Carnival Day
• Labor Day
• Pichincha Battle
• Independence Day
• Guayaquil Independence Day
• Day of the Death
• Independence of Cuenca
• Christmas Day

Onboarding takes 4 business days. Documents must be completed 1 day before the start date.

Employee must complete a medical check at least 2 days before their start date, and must be revalidated annually as required by Ecuador law.

Contracts must be in Spanish and can be bilingual. They must be in writing and signed by both parties.

A contract must include:

• name
• place of birth
• start date
• length of the employment
• job description
• termination conditions