Overview

Capital Quito

Currency United States Dollar (USD)

Date Format dmy

Taxes

Employer 12.15% - Social Security
0.16% - Pension Fund
8.33% - Reserve Fund (after 1 year)

Employee 9.45% - Social Security
8.64% or 6.64% - Pension Fund
Up to 11,270 - 0.00%
11,270 - 14,260 - 5.00%
14,360 - 17,950 - 10.00%
21,550 - 43,100 - 15.00%
43,100 - 64,630 - 20.00%
64,630 - 86,180 - 25.00%
86,180 - 114,890 - 30.00%
Over 11,890 - 35.00%

Termination

Termination Process Contracts can be terminated with just cause with out severance (with approval from labor augority) for: * Lack of discipline * Dishonesty * Serious offense against the employer * Serious incompetence * Non-compliance with regulations Otherwise, 30 days notice is required.

Advance Notice There is no statutory notice period, it is decided within the contract.

Severance Pay 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. Additionally, sudden dismissal bonus is offered at 25% of monthly wages for each year employed. * If employed for over 20 years, worker is entitled to retirement pension.

Mandatory Benefits

Pension Fund Employers conrtibute 0.16% of workers wages to their pension fund, Employees contribute either 6.64% (public and private sector employees) or 8.64% (public sector). Additionally, the government provides 40% of the cost of old age, disabillity and survivor pension contributions as an employer.

Social Security Employers contribute 12.15% of the employees salary to social security. Employees contribute 9.45% of their salary to social security.

Reserve Fund After a year of service, employers contribute 8.33% of wages to this fund. Employees can choose to contribute.

Additional Salary 13th Salary: An additional extra salary payment made as a christmas bonus by December 22nd. The amount used to calculate includes bonuses, commission and overtime (this means it can equal more then a months salary). 14th Salary: Equal to the government minimum wage, and paid in either March or August depending on location.

Minimum Wage

General Minimum wage is US$451 monthly (including 13th and 14th salary), from 1 January 2019.

Payroll

General Salaries are paid on a semi-monhtly, or monthly basis on the last day of the month. Semi-monthly payment are very common, providing 40% of monthly wage in first half of the month, and remaining 60% at the end.

Working Hours

General 40 hours weekly, and 8 hours daily. * Saturday and Sunday are considered mandetoryrest days. * Work between 7pm - 6am are paid at 125%.

Overtime Overtime is considered any hours additional to 8 in one day, or 40 in one week. It is paid at 150%, or 200% is overtime hours are after midnight.

VAT

General VAT is 12% standard rate.