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Hiring in Ecuador

Statutory employer contributions add 12.15% on top of gross salary, before any provider fee. Payroll runs monthly in USD.

America/Guayaquil | Spanish | Latin America

Last verified 26 Oct 2026Next review 21 Jan 2027Methodology
Cost calculator for Ecuador
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Overall score 8.1 out of 10
DeelVerified

130countries covered

  • Price 599 USD per employee per month

Deel says it owns entities in more than 130 countries, which puts it among the largest owned networks of any EOR provider. Its published EOR fee of USD 599 per employee per month is in line with the other large platforms, and contracts run month to month. It suits companies hiring both contractors and employees across several countries. Before signing, get the deposit amount and FX markup in writing, confirm that no offboarding fee applies, and check which of your countries run through a partner rather than a Deel entity.

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Overall score 8.2 out of 10
RemoteVerified

90countries covered

  • Price 699 USD per employee per month

Remote employs your staff through entities it owns in every country where it offers EOR, and its terms leave indemnities for EOR services uncapped, so it ranks well on compliance. The cost is a list fee of USD 699 per employee per month, and the margin in its monthly FX rate is not published. Standard terms can be cancelled on 30 days' notice, but an order form with a minimum contract value commits you for its full term and renews at a higher price. Shortlist it if owned entities in every country matter most to you, and get the FX margin and any order form terms in writing before you sign.

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Hiring here at a glance

Employer contributions
12.15%
Probation cap
3 months
Annual leave
15 days
Public holidays
11 days
Standard week
40 hours
Annual bonus
Required
Termination difficulty
4 out of 5
Payroll
Monthly

Notice: To be confirmed.

Statutory employer contributions

Statutory contributions in Ecuador
ContributionEmployerEmployeeStatus
IESS Employer Contribution (Aporte Patronal)11.15%9.45%Mandatory
IECE Educational Credit Levy0.5%0%Mandatory
SECAP Professional Training Levy0.5%0%Mandatory
Total12.15%9.45%

Employment contracts

Employment contracts in Ecuador are written and registered with the Ministry of Labour within 30 days, and the EOR issues them as the legal employer. Your company signs a separate service agreement.

The terms set out role, salary in US dollars, working time, leave, probation and confidentiality. The EOR is the counterparty to the employee, which is what removes the need for your own entity. Labour intermediation is banned here, so that relationship has to run through the EOR's own local entity.

Spanish is the standard contract language, and bilingual versions are common for international teams.

Fixed-term contracts were abolished in 2015, so indefinite terms are the default. Narrow exceptions exist for occasional, seasonal and project-based work.

Probation

Probation in Ecuador is capped at 90 days and can only be used once with the same employer. Either side can end the contract during probation without indemnity, but the clause must be in the written contract.

Set probation from day one. It cannot be extended beyond 90 days, and once it lapses a dismissal without just cause triggers the full statutory indemnity.

Some EORs shorten probation as policy because they, not you, carry the dismissal risk. Ask before you agree a start date.

Working time and overtime

The standard week is 40 hours, with a limit of 8 hours a day. Overtime pay is statutory for all employees except those in genuine management and trusted roles.

Supplementary hours are paid at a 50% premium up to midnight and 100% after midnight, capped at 4 hours a day and 12 a week. Weekend and public holiday work carries a 100% premium.

The management exemption is narrow. It covers people who represent the employer, not anyone with a senior title, so put the position in writing either way.

Leave and public holidays

Employees get 15 calendar days of paid annual leave after each year of service, plus 11 national public holidays. Sick, maternity and paternity leave sit on top.

From the sixth year, employees earn one extra day per year of service, up to 15 extra days. Unused leave is paid out on exit, so carry it as a liability when you budget.

Sick pay splits between the employer, who covers the first three days, and social security, which pays a subsidy from day four. Maternity leave is 12 weeks, funded 75% by social security and 25% by the employer, followed by two paid nursing hours a day. Paternity leave is 15 days. Confirm which side the EOR carries.

Termination and severance

Termination difficulty here is 4 out of 5. There is no dismissal on notice: the employer either proves just cause before a labour inspector or pays statutory indemnity.

Dismissal without cause costs three months' pay for up to three years of service, then one month per year of service, capped at 25 months. The desahucio bonus of 25% of monthly pay per year of service comes on top, and it is also due on resignation and mutual agreement. Employees who resign give 15 days' notice.

The EOR runs the process as the legal employer and will want the paperwork in order, including the settlement (acta de finiquito) registered with the Ministry within 15 days, final pay, unused leave and the proportional 13th and 14th salaries. Dismissing a pregnant or nursing employee or a union leader can be declared void, so take advice before acting.

Statutory benefits

Social security through the IESS is mandatory for every employee, foreign hires included, and covers health, pension and work risk. The 13th and 14th salaries, a reserve fund and a 15% share of company profits sit on top.

Private medical cover and group life are common top-ups for professional roles even though they are not mandatory.

EORs often bundle benefits through a group scheme. Ask what is included in the fee and what is billed on top, and how the EOR handles the annual profit share.

Payroll and tax

Payroll runs monthly in US dollars, the national currency, although many employers pay twice a month. Income tax is withheld at source by the employer each month.

Employer contributions add 12.15% on top of gross salary. The 13th salary, the 14th salary (one basic wage, USD 482 in 2026) and, from month 13, an 8.33% reserve fund come on top of that. That is before the EOR fee.

The 13th and 14th salaries are the trap. They are paid as lump sums by fixed dates (24 December, and 15 March or 15 August depending on region) unless the employee opts for monthly payments, so build them into the monthly cost rather than the year-end budget.

Work permits

Foreign hires need a temporary residence visa for work, backed by an employment contract registered with the Ministry of Labour. Processing times vary, and the foreign ministry sets no fixed deadline.

Ask whether the EOR sponsors directly or refers to a partner. The visa rests on a registered contract with an employer in good standing with the tax authority, so a partner-model EOR may not be able to support it at all.

Nationals of Mercosur countries have a simpler residence route. Set start dates after approval, not before.

Data protection

Employee data is processed under the Organic Law on Personal Data Protection, with the EOR acting as controller for employment records and processor for your instructions.

Get the data processing terms in the service agreement, not just the privacy notice. Cross-border transfers need a lawful basis, and the regulator has been consulting on its transfer rules, so ask what mechanism the EOR relies on.

Ask where payroll data is hosted and who in the partner chain can see it.

When to open your own entity

The usual trigger in Ecuador is 5 to 15 employees, or a permanent commercial presence. Below that, an EOR is normally cheaper and faster.

Incorporating a simplified company (SAS) is relatively quick, but the running cost is the point: a legal representative, an accountant, monthly tax filings, annual reporting to the Superintendency of Companies and payroll software set an annual floor.

Permanent establishment risk is about what people do, not where payroll sits. Revenue-generating activity can create exposure regardless of the employment route.

Editorial ranking

Best EOR providers in Ecuador

Best EOR providers in Ecuador

Ranked by our seven criteria, with the coverage score adjusted for whether the provider owns an entity here. Complete list of Best EOR providers in Ecuador

Verified provider
RemoteVerified

90countries covered

Owned
  • Price 699 USD per employee per month
  • Billing flat fee per employee per month
  • Minimum term None reported
  • Deposit None reported
  • FX margin Not published

Remote employs your staff through entities it owns in every country where it offers EOR, and its terms leave indemnities for EOR services uncapped, so it ranks well on compliance. The cost is a list fee of USD 699 per employee per month, and the margin in its monthly FX rate is not published. Standard terms can be cancelled on 30 days' notice, but an order form with a minimum contract value commits you for its full term and renews at a higher price. Shortlist it if owned entities in every country matter most to you, and get the FX margin and any order form terms in writing before you sign.

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Verified provider
DeelVerified

130countries covered

Owned
  • Price 599 USD per employee per month
  • Billing flat fee per employee per month
  • Minimum term None reported
  • Deposit Required
  • FX margin Not published

Deel says it owns entities in more than 130 countries, which puts it among the largest owned networks of any EOR provider. Its published EOR fee of USD 599 per employee per month is in line with the other large platforms, and contracts run month to month. It suits companies hiring both contractors and employees across several countries. Before signing, get the deposit amount and FX markup in writing, confirm that no offboarding fee applies, and check which of your countries run through a partner rather than a Deel entity.

Read profile
Verified provider
G-P (Globalization Partners)Verified

156countries covered

Unknown
  • Price 599 USD per employee per month
  • Billing flat platform fee per employee per month, invoiced monthly with payroll pre-funded in advance
  • Minimum term None reported
  • Deposit Required
  • FX margin Not published

G-P is one of the most compliance-focused EORs available, with over 100 of its own legal entities and a long record in heavily regulated countries. Its list price starts at USD 599 per employee per month, but independent reviewers report higher quotes, a one-off setup fee per hire, a deposit, an FX markup and an offboarding charge. Shortlist it if you’re a larger business that puts compliance ahead of cost, and get the full fee schedule in writing before you sign.

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Verified provider
OysterVerified

116countries covered

Unknown
  • Price 699 USD per employee per month
  • Billing flat fee per employee per month, billed monthly; discounted annual seat-based billing also available
  • Minimum term None reported
  • Deposit Required
  • FX margin Not published

Oyster suits companies that want HR experts, legal support and termination handling included in one EOR fee, along with integrations for the most common HRIS and ATS platforms. The trade-offs are a USD 699 monthly list price, a refundable deposit of about one month's employment cost per hire, and EOR coverage of 120+ countries rather than the 180+ headline. There are no onboarding or offboarding fees, and monthly billing carries no minimum term.

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Questions buyers ask about Ecuador

How much does it cost to employ someone in Ecuador through an EOR?
Budget the gross salary, plus 12.15% in employer contributions, plus the 13th and 14th salaries and, from the second year, an 8.33% reserve fund, plus the EOR fee. Published EOR fees sit in the 199 to 699 USD per employee per month band, or a percentage of payroll.
How long does it take to onboard an employee in Ecuador?
Typically 2 to 7 working days once the candidate has accepted and right to work is confirmed. The employee must be registered with social security from the first day, and work visa cases take considerably longer.
Can an EOR terminate an employee in Ecuador?
Yes, but termination difficulty here is 4 out of 5. Without just cause approved by a labour inspector, the EOR must pay statutory indemnity of at least three months' salary plus the desahucio bonus, so it will want a documented reason.
Does the EOR need its own entity in Ecuador?
Yes. Ecuador prohibits labour intermediation, so the employment relationship must be direct, and only the entity that holds the contract can support a work visa. Ask whether the provider owns it or uses a partner, in writing.

Popular roles hired here: Development, Support, Engineering, Marketing.

Verified EOR providers in Ecuador

Entity model by provider

Verified EOR providers in Ecuador
ProviderEntity model
RemoteOwned
DeelOwned
G-P (Globalization Partners)Unknown
OysterUnknown