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Benefits Guide
Employing in Ecuador
The Ecuadorian Constitution and Labour 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.
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The Ecuadorian government has set the minimum wage at $460.
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For customers of Remote, all employee payments will be made in equal monthly instalments on or before the last working day of each calendar month, payable in arrears.
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Ecuador’s ‘13th pay’ 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.
Ecuador’s 14th pay 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.
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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.
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13 Public holidays
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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. Sign up now to get started or talk to an expert for more details.
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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.