Hire employees in

Ecuador, hassle-free

Hire employees in Ecuador, hassle-free

With Deel, your business can easily hire employees in Ecuador. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries.

The average onboarding time frame in Ecuador is 5 days with Deel.

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Hire employees in Ecuador. No entity needed.

Usually, to hire in Ecuador, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.

Ecuador also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in Ecuador quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.

All the necessary benefits for Ecuador
built right in

Deel allows you to provide localized benefits for employees in Ecuador within minutes. All in one manageable online dashboard.

Social Security

Our quickstart guide to hiring in Ecuador

Navigate the tabs below to learn everything you need to know about hiring an employee in Ecuador

Minimum Wage Requirements

The minimum wage is USD 425 per month.

Individual Income Tax

The individual income tax ranges from 0% to 37%. Income tax is calculated according to progressive rates.

Employer Cost

The employer cost is generally estimated at 21% of the employee salary.

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.

Maternity Leave

Employees are entitled to 12 weeks of paid leave. The first 2 weeks must be taken before the estimated time of the due date. The employee will receive 100% of the salary during this period. Social Security will be responsible for 75%, and the employer will cover the remaining 25% of the basic salary.

Paternity Leave

Employees are entitled to 10 days of paid paternity leave that must be after the child's birth. The employee will receive 100% of the salary during this period, and the employer will be responsible for this pay.

Parental Leave

In Ecuador, no law covers parental leave. However, employees may be entitled to maternity leave and paternity leave.

Sick Leave

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:

Period	Pay	Payer
0 - 3 days	100% of base salary	Employer
4 - 70 days	75% of base salary	Social Security
4 - 70 days	25% of base salary	Employer

Termination Requirements

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

Notice Period

By law, there is no notice period. However, the employer and employee may agree on the length of the employment contract.

Severance for Employees

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.

Paid Time Off

Full-time employees are entitled to 15 calendar days of paid time off (PTO) per year. 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.

For part-time employees, PTO will be proportional to the working schedule.

Public Holidays

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

Onboarding takes 5 business days. Documents must be completed 1 day before the start date.

Employment Contract Details

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

Probation Period

The probation period lasts 90 days.

Hiring in Ecuador, hassle-free

With Deel, your business can easily hire employees in Ecuador. No more worrying about local laws, complex tax systems, or managing
international payroll. Deel takes care of everything in 150+ countries.

599 USD

Management fee

21%

Estimate Employer Cost

*of employee salary

Want to learn the cost of hiring an employee in Ecuador?

View our Employee Cost Calculator

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