hire in Ecuador

Ecuador PEO &
Employer of Record

SALARY PAYMENT IN United States Dollar (USD)

CONTRACT LANGUAGE Spanish / English

PAYROLL TAX 12.15%

PAYROLL CYCLE Monthly

TIME TO HIRE 24 hours
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The Horizons PEO solution allows you to hire in Ecuador, without setting up a costly subsidiary.

Horizons has the most fair price point for Ecuador PEO on the market with zero hidden fees. Contact us for a cost breakdown

With extensive experience in the Ecuador hiring market, Horizons can hire new employees in as little as 24 hours.

Horizons' HR management platform was built to easily manage Ecuador & international teams, based on client feedback at each step of development.

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Ecuador

In this guide

Hire in Ecuador

Employment Laws

Compensation & Benefits

FAQs

Simple, compliant hiring with Horizons PEO

Hire in Ecuador

Horizons ensures day-to-day guidance to help your business navigate Ecuador labor laws and regulations. Horizons also ensures payroll is processed weekly or fortnightly (the standard periods in Ecuador ), and that taxes are withheld as required.

As the Ecuador Employer of Record, Horizons is responsible for employee income tax withholding, payment of payroll taxes to state authorities, and submission of tax returns to the Ecuador Tax Office.

Partnering with our Ecuador PEO is the quickest and most cost-effective way to enter the Ecuador market.

Facts & Stats

PEO Platform Hire in Ecuador, and pay employees through our platform or app.	PEO Cost Our Ecuador PEO solution is the most affordable on the market.	Time-to-hire Fast onboarding in Ecuador, hire in as little as 24 hours.
Contracts We draft labor contracts compliant with Ecuadorian labor law.	Local Benefits We administer all mandatory benefits and contributions in Ecuador.	180+ Countries It doesn’t stop with Ecuador — we are an international PEO

stay compliant with Ecuador labor laws

Employment Laws

Employment contracts in Ecuador

Contracts of employment in Ecuador can technically be either verbal or written, but we recommend always writing up formal contracts for each employee. These contracts should cover any relevant details such as wage/salary, expected working hours, benefits, and so on. The contracts should also be written in Spanish and reference the country’s official currency of the US dollar

Fixed-term

Probationary period

3 months (standard)

Termination notice period

30 days (standard)

Severance

1 month’s salary per year of service

Minimum: 3 months’ salary

Indefinite

Probationary period

3 months (standard)

Termination notice period

30 days (standard)

Severance

1 month’s salary per year of service

Minimum: 3 months’ salary

Working hours in Ecuador

The standard working week for employees in Ecuador is 40 hours spread across five days. Work beyond this 40 hours should count as overtime and be paid at a rate of 150% of normal pay (or 200% for public holidays).

Hire compliantly in Ecuador without a local entity.

Quick, compliant hiring in 24 hours—no subsidiary required.

Public holidays in Ecuador

Ecuadorians recognize several annual public holidays. Many employees are entitled to the following days off work:

Holiday Schedule in Ecuador [2023]

Ecuador has a range of national public holidays that are celebrated annually. In 2023 these holidays are:

Date	Holiday name
1 Jan Sunday	New Year’s Day
2 Jan Monday	Day off for New Year’s Day
20 Feb to 21 Feb	Carnival
7 Apr Friday	Good Friday
1 May Monday	Labor Day / May Day
24 May Wednesday	The Battle of Pichincha
26 May Friday	Day off for The Battle of Pichincha
10 Aug Thursday	Independence Day
11 Aug Friday	Day off for Independence Day
9 Oct Monday	Independence of Guayaquil
2 Nov Thursday	All Souls’ Day
3 Nov Friday	Independence of Cuenca
25 Dec Monday	Christmas Day

Vacation leave in Ecuador

After five years of service with an employer, employees in Ecuador are entitled to 15 days of paid annual vacation leave. This allowance increases by one day per additional year of service up to a limit of 30 days.

Sick leave in Ecuador

Employees in Ecuador are generally entitled to up to two months of paid sick leave. This time off must be compensated at 50% or more of their normal pay.

Parental leave in Ecuador

Female employees in Ecuador are entitled to 12 weeks of paid maternity leave. 75% of their usual pay is covered by the country’s social security and the remaining 25% is covered by the employer.

Fathers are entitled to up to ten days of paid paternity leave in most cases.

Terminations and severance in Ecuador

Employees in Ecuador on fixed-term contracts are generally entitled to 30 days of notice prior to termination. Employees are also usually entitled to a severance payment which is often calculated as 25% of monthly salary for every year of service.

Taxation and withholdings in Ecuador

Income tax in Ecuador is paid via a Pay As You Earn (PAYE) model, so employers need to withhold their employees’ taxes and file a report at the end of every tax year. The taxation is progressive, so higher earners pay a higher percentage in tax. Rates vary from 0% to 35%.

Employees and employers in Ecuador need to pay a percentage of salary into the nation’s social security program, paying 9.45% and 12.15% respectively. The employer contribution changes after the employee has been with them for more than two years.

Health coverage in Ecuador

Ecuador has a comprehensive state-funded healthcare system, so individuals do not need private insurance. However, some employers may choose to offer it as part of their benefits packages.

hassle-free Ecuador compensation & benefits

Compensation & Benefits

Compensation laws in Ecuador

The minimum wage in Ecuador for the unskilled labor category is $400 per month. However, it is important to note that 13th and 14th month salaries are mandatory in the country.

Benefit management in Ecuador

Building a benefits system for your Ecuador workforce can be difficult and complicated to navigate if you are not familiar with the country, its customs, and its employment laws. To set it up independently, it can take several weeks and potentially lead to unexpected delays.

At Horizons, we specialize in running the setup and management of Ecuadorian employee benefits systems so you don’t have to. We’ll take care of everything, using our knowledge and experience to ensure you are compliant and ready to hire in Ecuador.

Hire in Ecuador in 24h without your own local entity.

With Horizons, you get quick service, transparent pricing, and expert support.

FAQs

What is the difference between an Ecuador PEO and an Ecuador EOR?

An Ecuador PEO and an Ecuador EOR are two types of companies which specialize in providing human resources services to businesses in Ecuador.

The main difference between an Ecuador PEO and an Ecuador EOR is in the scope of their services.

Ecuador PEOs provide a full range of HR services, including payroll, benefits administration, and employee recruiting—all under one roof as a co-employer. Engaging an Ecuador PEO is essentially outsourcing your HR duties in Ecuador.

Ecuador EORs actually take over as the legal employer of your employees based abroad. Ecuador EORs become responsible for labor compliance for your employees in Ecuador.

At Horizons, we offer both PEO and EOR services in Ecuador. Get in touch now and let us know what service you are seeking.

Can a PEO in Ecuador hire both local and foreign nationals to work in Ecuador?

A PEO in Ecuador can feasibly hire both local and foreign nationals to work in Ecuador.

However, the ability of Horizons to sponsor your foreign national employee in Ecuador may be limited due to visa quotas practiced in many countries.

Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.

How long does Horizons' Ecuador PEO service take to hire an employee?

In most cases, Horizons’ Ecuador PEO can hire & onboard your employee within 24 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Ecuador.

Is it possible to get a work visa in Ecuador?

It is possible to get a work visa in Ecuador. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Ecuador are limited, however—get started today to secure your employees’ visa spot.

hire in Ecuador

Ecuador PEO & Employer of Record

Simple, compliant hiring with Horizons PEO

Hire in Ecuador

Facts & Stats

stay compliant with Ecuador labor laws

Employment Laws

Employment contracts in Ecuador

Fixed-term

Indefinite

Working hours in Ecuador

Hire compliantly in Ecuador without a local entity.

Public holidays in Ecuador

Vacation leave in Ecuador

Sick leave in Ecuador

Parental leave in Ecuador

Terminations and severance in Ecuador

Taxation and withholdings in Ecuador

Health coverage in Ecuador

hassle-free Ecuador compensation & benefits

Compensation & Benefits

Compensation laws in Ecuador

Benefit management in Ecuador

Hire in Ecuador in 24h without your own local entity.

FAQs

Hire Anywhere. Today.

Ecuador PEO &
Employer of Record