ECUADOR PEO & EOR
Hire in Ecuador without a local entity today
As a Global PEO & EOR service provider, we pride ourselves on our global reach, in-country knowledge, and ability to swiftly and efficiently mobilize workers around the world. Our robust PEO/EOR covers everything from global HR, payroll, compliance, in-country support, immigration, visas, and more.
Get started and hire in Ecuador today with Gibson Watts Global.
DID YOU KNOW
- Ecuador is the only country in the world named after the equator, which runs directly through it.
- It is one of the most biodiverse nations on Earth, home to the Galápagos Islands, a UNESCO World Heritage Site and a living laboratory of evolution.
- The country’s railway system once included the “Devil’s Nose,” a steep, zigzagging track that was considered one of the most challenging railway routes in the world.
Forget software,
this is expansion
with a human touch
ECUADOR EOR Services
Expanding Your Business in South America’s Gateway
Ecuador offers a stable, dollarized economy, a growing service sector, and a strategic location connecting South and Central America. With a skilled workforce and favourable trade agreements, it is an attractive destination for international companies looking to expand in the region.
Partnering with Gibson Watts Global as your Employer of Record in Ecuador enables your business to hire local employees efficiently and compliantly. We manage employment contracts, payroll, tax compliance, and benefits administration, ensuring full alignment with Ecuadorian labour and tax regulations while you focus on business growth.
Working in North ECUADOR
Financial Year Dates
The financial year runs from 1 January to 31 December.
Minimum Wage
As of 2025, the national minimum wage in Ecuador is USD 460 per month, based on a standard full-time schedule.
Standard working hours
The standard workweek is 40 hours, typically divided into five 8-hour days.
Overtime
Overtime is paid at 150% of the employee’s regular hourly rate for hours worked beyond 40 per week. Work performed at night or on public holidays is paid at 200% of the regular rate. Employees may not work more than 12 hours of overtime per week.
Holiday Allowance
Employees are entitled to a minimum of 15 calendar days of paid annual leave after completing one year of continuous service.
Sick Leave
Employees are entitled to sick leave, with employers covering the first three days at 50% pay. From the fourth day onward, the Ecuadorian Social Security Institute (IESS) compensates the employee up to 75% of their regular salary for the certified sick leave period.
Maternity & Paternity Leave
Female employees are entitled to 12 weeks of paid maternity leave, funded through the IESS. Fathers are entitled to 10 days of paid paternity leave, extended in cases of complications or multiple births.
Public Holidays
Ecuador observes the following public holidays:
- New Year’s Day
- Carnival (two days)
- Good Friday
- Labour Day
- Battle of Pichincha Day
- Independence Day
- Guayaquil Independence Day
- All Souls’ Day
- Christmas Day
Social Contributions
Ecuador’s social security system is managed by the Instituto Ecuatoriano de Seguridad Social (IESS). Both employers and employees contribute to fund healthcare, pensions, maternity leave, and other benefits.
Employer Contributions
- Social Security: 12.15% of gross salary
- Reserve Fund (after one year of service): 8.33%
- Occupational Risk Insurance: 0.55%
Employee Contributions
- Social Security: 9.45% of gross salary
Income Tax
Personal income tax in Ecuador is progressive, with rates ranging from 0% to 37%. Employers are responsible for withholding income tax from employees’ salaries and remitting it to the Internal Revenue Service (SRI). Non-residents are taxed only on Ecuador-sourced income.
Health Care
Ecuador provides universal healthcare through the IESS, which covers medical consultations, hospitalization, maternity services, and prescriptions. Employees automatically gain access through their social security contributions. Private healthcare is also available and widely used by expatriates and higher-income residents for faster access and a broader range of services.
Visas
Foreign nationals intending to work in Ecuador must obtain the appropriate visa and work authorization. Common options include:
- Temporary Residence Work Visa, valid for up to two years and renewable
- Investor Visa for business owners and investors
- Professional Visa for skilled workers with recognized qualifications
All work visas require sponsorship from an Ecuadorian employer and registration with the Ministry of Labour.
13th salary?
Yes. Ecuador mandates a 13th-month salary equivalent to one month’s pay, typically paid in December. A 14th-month salary, equal to one month’s minimum wage, is also common and is usually paid in March or August depending on the region. Learn more here: 13th & 14th Salary – The Complete Guide.
Cultural Information
Ecuador’s culture reflects a blend of Indigenous, Spanish, and African influences. Traditional music such as pasillo and marimba remains popular, while vibrant festivals like Inti Raymi and Carnival showcase colourful costumes and dances. Ecuadorian cuisine is regionally diverse, featuring dishes like ceviche on the coast, hornado (roast pork) in the highlands, and yuca-based meals in the Amazon. Family and community play central roles in social life, and hospitality is a deeply valued tradition.