Ecuador

• New Year’s Day
• New Year Holiday
• Carnival
• Good Friday
• Labour Day
• Anniversary of the Battle of Pichincha
• National Day
• Independence of Guayaquil
• All Souls’ Day
• Independence of Cuenca
• Christmas Day

Working Hours

Employees can work up to 8 hours a day, or 40 hours per week.

Minimum Wage

USD 470 per month.

Employee Tax

Annual income	Tax rate
Up to USD 11,310	0%
USD 11,310.01 - 14,416	5%
USD 14,416.01 - 18,018	10%
USD 18,018.01 - 21,630	12%
USD 31,630.01 - 41,630	20%
USD 41,630.01 - 51,630	25%
USD 51,630.01 - 61,630	30%
USD 61,630.01 - 100,000	35%
More than 100,000	37%
Social security contribution	9.45%

Bonuses

Employees in Ecuador are entitled to a 13th and 14th month salary, payable in December and March/September (depending on location) respectively.

The employee is also entitled to a bonus equivalent to 25% of their monthly salary for each year of service if they resign.

Employment contracts in Ecuador must be written. They should include:

• Employer and employee information
• Job title and responsibilities
• Working hours
• Salary
• Work start date
• Contract type
• Probation period

Fixed-term contracts are not usually permitted in Ecuador.

Annual Leave

Minimum of 15 days' paid holiday, with an additional day added each year after five years of service.

Sick Leave

Up to one year of sick leave.

The employer must pay the employee 50% of their remuneration for the first three (3) days of sick leave, with social security taking over from the 4^th day. For an employee who is not eligible for benefits from social security, the employer must pay 50% of their remuneration for the first two (2) months.

Parental Leave

• Maternity leave: at least 12 weeks' paid leave.
• Paternity leave: 10 days' paid leave.

Termination Process

Employers in Ecuador can terminate a contract provided they give compensation in line with legal requirements. Grounds for termination include:

• Lack of discipline
• Dishonesty
• Serious offences against the employer
• Serious incompetence
• Non-compliance with company regulations

Notice periods do not exist in Ecuador. Terminating a contract for any reason will incur severance and indemnity pay.

Severance Pay

Employees with at least 3 years’ service are entitled to three months’ wages plus an indemnity equal to 25% of the last monthly salary per year worked. If they have more than 3 years’ service they are entitled to one wage per year of service, plus the indemnity.

Global Master Insurance Coverage with Mauve’s Employer of Record Solution
Under a Mauve Group Employer of Record (EOR) solution, clients and their international workers benefit from access to Mauve’s Global Master Insurance Programme—a market-leading, unified corporate insurance framework that supports global compliance across all Mauve entities.

This international insurance coverage ensures legal and regulatory alignment through a combination of a central master policy and country-specific local policies, where required by law. This allows companies to remain fully compliant when expanding their workforce globally or employing staff overseas.

The Global Master Insurance Programme includes the following coverage:

• Employer’s Liability and Public Liability – £10,000,000 combined limit
• Professional Indemnity – £5,000,000 limit
• Worker’s Compensation – Varies depending on the employee’s location

Whether you're expanding internationally or managing global teams, Mauve’s EOR services and insurance support streamline your operations and reduce risk. For tailored advice on mandatory insurance requirements in specific countries, contact Mauve’s international HR consulting team today.