Written employment contracts are required and must state an agreement between two parties, what the worker him/herself will be providing the service, a relationship of dependence or subordination and salary payment.


Salaries are paid on monthly basis on the last day of the month.

HR & Labor

Working Hours: Full time employment is considered 40 hours per week and eight hours a day. Saturdays and Sundays are mandatory rest days. Overtime is compensate for at 150% hourly wage, and 200% for work on non-work days.
Working Age: Minimum working age in Ecuador is 15 years old, and 18 for hazardous work.


In order to work in Ecuador, one must receive a long term visa within 3 moths of arriving. There are two types of work visas, resident and non resident. The resident work visa (12-VI) is for professionals and trained special workers. Resident work visa (9-V) is for those with indefinite work contracts and is valid indefinitely.


Employees in Ecuador are entitled for 13 and 14 months salaries generally paid in June and December

Minimum Wage

Minimum wage is $418.1 per month.

Pension Fund

The employer is required to contribute monthly starting from employees 2nd year of work.

Employees are not required to contribute to a pension fund.

Sick Days

Employees are entitled to medical leave for non-occupational illnesses for up to one year.

Severance Payments

If employees are not given notice, they are entitled to receive one paycheck for every ear employed by the company up to 25 months of payments.

Advance Notice

Employee must provide 15 days of notice.

Termination Procedure

Employer must provide the employee with 30 days of notice.

Public Holidays

There are 9 public holidays

Vacation Days

Employees are entitled to 15 vacation days yearly after 5 years of employment, and an extra day for every year following at a maximum of 30 vacation days yearly.

Workers under the age of 16 receive 20 days, and between 16-18 receive 18 days.


VAT is 14% standard rate.

Social Security

Employers contribute 11.15% of the employees salary to social security.

Employees contribute 9.35% of their salary to social security.

Income Tax

Non-residents pay a standard rate of 22% of their income on taxes. Residents range from 5-35% dependent on their income.