Employer of Record in Ecuador | Hire in +100 Countries

Employer of Record in Ecuador

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A reputable Employer of Record in Ecuador can provide a low-cost, fast, and efficient entry into the country.  

Employer of Record (EOR) can help cut through the bureaucratic red tape that characterizes international incorporation. As a result, you can assemble a team and begin operations abroad in just a few days.  

INS Global helps you hire professionals, transfer workers, issue contracts, onboard new hires, ensure compliance with tax and labor laws, manage payroll, and administer workers’ benefits, all through a single online platform. With INS Global handling international HR administration and local regulatory compliance, you can focus on core business activities without distractions.  

Employer of Record in Ecuador - Summary

Employer of Record in Ecuador

The Advantages of Using an Employer of Record in Ecuador

Assured Legal Compliance

We stay up-to-date with the local labor laws and regulations in Ecuador on your behalf. As a result, you minimize the risk of legal issues, penalties, and fines due to non-compliance. 

Reduced Cost And Time

Setting up a legal entity in a new country is a lengthy and expensive process involving legal fees and administrative overhead. But partnering with an EOR in Ecuador helps companies avoid these expenses. 

Grow Rapidly

EORs have local expertise and labor market knowledge for hiring work talents in new markets. This quick and efficient hiring helps you scale your operations and seize growth opportunities more effectively. 

Fast Market Entry

Expand into various international markets by leveraging a global network with local expertise. Integrate your operations in Ecuador with those in 100 other countries worldwide. 

Focus on Core Business

Free up valuable time and resources by offloading administrative and compliance obligations to an EOR. Ecuador can be a tough market to enter, but an EOR gives you the support you need to pursue your expansion goals. 

Why Choose an EOR in Ecuador over Company Incorporation?

Incorporating an entity or establishing a branch office in Ecuador involves significant time, expenses, and administrative complexities 

In contrast, partnering with an EOR is a faster and more cost-effective expansion solution. EOR services like INS Global allow businesses to enter the market quickly, minimize financial risks, and focus on their core operations without the burden of legal and administrative intricacies. 

testimonial from Manuel Ramos


Manuel Ramos


Managing Director

We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.


How Does an Employer of Record in Ecuador Work?

When working with INS Global’s Employer of Record in Ecuador, the process follows these 4 simple steps: 

  • First, we meet to discuss your business requirements and employment needs to develop a custom plan tailored to your company’s expansion goals in Ecuador. 
  • We then provide a legal entity for hiring, enabling you to recruit and dispatch workers in Ecuador. EOR services simplify hiring by eliminating the need for a separate legal entity. Our recruitment agency in Ecuador can even help you find the best local talent to quickly expand your team.  
  • We immediately assume liability for HR administration and ensure compliance with Ecuadorean tax and labor laws specific to your operations. Our day-to-day responsibilities include managing payroll, documenting and issuing employment contracts, and ensuring regulatory compliance. 
  • With us shouldering the administrative burdens, you can focus on managing the primary day-to-day operations that promote your growth in Ecuador.  

What’s The Difference Between PEO And EOR?

While both service type provides HR support and compliance assurance, the main difference between an Employer of Record (EOR) and a Professional Employer Organization (PEO) is the level of legal responsibility they assume. Knowing the differences is the best way to pick the service that best suits your needs. 

EORs and PEOs both offer HR outsourcing solutions, but an EOR is fully liable for employment and compliance matters, such as payroll, tax compliance, and employment contracts. It does this by signing a contract directly with employees, becoming their legal employer.  

In contrast, a PEO typically shares employer responsibilities with the client company, maintaining a co-employment relationship. Here, the contract is kept between the employee and the client company, with the PEO signing an agreement with the client company to manage HR services.  

In general, an EOR provides the most comprehensive solution for businesses seeking entry into Ecuador without the complexities of shared responsibility. 

Labor Law in Ecuador - 2024

Employment Contracts In Ecuador

Employment contracts in Ecuador are required for fixed and indefinite employment relationships. Employers should write the contract in Spanish, the country’s official language. Verbal contracts are recognized, but best practice always recommends written agreements to avoid later misunderstandings and ensure clarity. 

The standard probationary period in Ecuador is 3 months, and the notice period preceding termination is 30 days 

The labor law in Ecuador allows for sudden dismissal without justification but involves making a severance payment.  

In an indefinite-term contract (the standard employment contract), the employee is entitled to severance payments on termination as follows: 

  • In case of employee resignation, the employee is entitled to payment of 25% of their last monthly salary for each year of service. 
  • If the termination was a sudden dismissal without just cause, the employee is entitled to a month’s salary per year of service but no less than 3 monthly salaries. 

However, the employer is not required to make a severance payment for dismissals due to just cause, such as a repeated lack of punctuality or abandonment of work.  

Working Hours In Ecuador

The statutory working hours in Ecuador are as follows: 

  • 40 hours per week 
  • 5 days/week 
  • 8 hours/day 

Saturday and Sunday are mandatory rest days. When work activity cannot be suspended on Sunday or Saturday, an employer can agree upon 2 other consecutive rest days with the employee. Employees requested to work on rest days are also eligible for 200% standard salary for those days. 

The maximum overtime hours are 4 hours per day and 12 hours per week. Employees who work overtime are entitled to additional benefits as follows:  

  • 150% of the regular hourly rate for overtime done during the day. 
  • 200% of the regular hourly rate for overtime worked between midnight and 6:00 am and for work done on Saturdays, Sundays, or rest days. 


However, an employer is exempt from overtime payment when overtime is necessary to solve accidents caused by the employee and for employees in a position of trust or managerial positions. 

An 8-hour working day must have a rest break of up to 2 hours after the first 4 hours worked. 

The Ecuadorean Government revises the minimum wage regularly, but the current figure is 450 USD per month 

Public Holidays in Ecuador

Employees in Ecuador are eligible for the following 13 paid public holidays: 

  • New Year’s Day (January 1st) 
  • Carnival (varies, but typically in February or March) 
  • Good Friday (Friday before Easter Sunday) 
  • Labor Day (May 1st) 
  • Independence Day (August 10th) 
  • Independence of Guayaquil (October 9th) 
  • All Saints’ Day (November 2nd) 
  • Independence of Cuenca (November 3rd) 
  • Christmas Day (December 25th) 

Annual Leave and Sick Leave

A worker in Ecuador is entitled to paid annual vacation as described below: 

  • 15 days of annual leave after 1-year service 
  • After completing 5 years of service, an employee gets 1 additional day of leave every subsequent year 
  • The maximum duration of paid leave is 30 days 
  • An employee may decide to carry their annual leaves forward for 3 years 

 The employer is obligated to pay the employee 50% of their standard remuneration for the first 2 months of sick leave unless the employee is entitled to government social security payments. 

Maternity/Paternity Leave in Ecuador

Parental leave in Ecuador is described below: 

  • Female employees in Ecuador are entitled to paid maternity leave for 12 weeks (2 weeks before, 10 weeks after delivery). The country’s social security covers 75% of the paid maternity leave, and the employer covers the remaining 25%.  
  • Fathers are entitled to up to 10 days of paid paternity leave. 

Social Security & Tax Law

The Ecuadorean Institute of Social Security (IESS) is the government institution responsible for managing the country’s social security program. The program covers aspects such as healthcare, retirement, disability, unemployment, and family benefits.   

Employees contribute 9.45% of their salary, while employers contribute 12.15% of their total payroll to the social security system.  

Ecuadorian residents are taxed on their worldwide income at progressive rates starting from 0% to 37%. The rates are given below: 

Annual Income (USD) 

Tax Rate 

0 – 11,31 


11,310 – 14,410  


14,410 – 18,010  


18,010 – 21,630  


21,630 – 31,630  


31,630 – 41,630  


41,630 – 51,630  


51,630 – 61,630  


61,630 – 100,000  


100,000 and over  


 A flat income tax rate of 25% applies to non-residents 

 Ecuador levies a 12% value-added tax (VAT) on certain goods and services. 

 The standard corporate income tax rate in Ecuador is 25%.  

Employer of Record in Ecuador


Discover More Solutions in Ecuador


Foreign companies can either set up a local entity in each country or use the services of a local PEO (Professional Employment Organization) to hire the staff directly. 

In general, you can have employees based abroad using an Employer of Record in Ecuador in weeks. Meanwhile, incorporating a new subsidiary to be the employer of record can take from 4-12 months. 

The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.

The price of professional EOR services in Ecuador is a percentage of the worker’s monthly compensation. This price covers all HR-related tasks required to ensure compliance with local employment laws. 

Yes. An Ecuador-based EOR is a safe, legitimate, and efficient way to handle employer responsibilities there without having to establish a specific corporate structure. EORs ensure your safety by working with local legal professionals and offering top-notch HR assistance. 

An EOR service agreement ensures your team members will are paid accurately and on time each month. In addition, your workers can access all Ecuadorean employee benefits and be protected by law. 

Independent contractors who interact with their clients within an Ecuadorean EOR framework will retain control of their work and may be eligible for many of the benefits of regular employees.  

Yes. Our team of expert recruitment consultants can find the best local talent in Ecuador for your needs by utilizing their wide professional networks, in-depth knowledge of regional business resources and benchmarks, and commitment to ethical hiring practices.

Yes. An Employer of Record can help you find workers in various cities or regions within Ecuador. An EOR handles headhunting, interviews, and candidate selection in specific cities or regions in Ecuador, depending on your needs or preference. 

While some PEO or EOR service providers have minimum hiring requirements or a limit on the number of employees you may hire at once, INS Global gives you the freedom to employ however many or few employees you need to achieve your goals. 

Using a PEO service in Ecuador eliminates the need for a local address. But the option for your employees to work in a shared workspace whenever convenient is a good idea.  

Absolutely. We can manage the necessary visa and work permit processes for foreigners. Also, we can handle situations where the local employment laws, tax laws, or employee benefits differ for Ecuadoreans and foreigners. 


OR and PEO solutions are ideal for enterprises of all sizes, from SMEs to multinational corporations. These solutions ensure the efficient and secure employment of foreign or local workers. In addition, our services allow you to scale employment demands to meet work operations.  


The legal expertise of PEO and EOR services can help businesses that don’t have their own structures or those seeking to avoid cost-scaling difficulties during international expansion. 

Staffing firms and umbrella corporations are third-party options for hiring independent freelancers in Ecuador.  


Most independent contractors in Ecuador are self-employed or run small enterprises. These contractors must be hired in accordance with a work agreement rather than an employment contract, according to the country’s law. 


Hence, independent contractors can provide a CV, portfolio, verified references, and perhaps a signed NDA. 


The cost of hiring in Ecuador should factor in direct expenses like salary, recruiting service fees, signing bonuses, and other indirect expenses, including incentive programs, foreign employee tax management, and social security contribution payments. 

Employers in Ecuador manage payroll for all workers, usually at the end of every month. Employers are responsible for withholding amounts corresponding to employees income tax and social security fund contributions. 

The Ecuadorean Government revises the minimum wage regularly, but the current figure is 450 USD per month.   

In Ecuador, several visa types are available for foreign employees who wish to work there. Here are some common visa types for employees in Ecuador: 



  • Work Visa (Visa de Trabajo): This visa is for individuals who have secured a job offer or employment contract from an Ecuadorian employer.  
  • Professional Visa (Visa de Profesional): This visa is for foreign professionals with specialized skills, education, or expertise in a specific field, such as medicine, engineering, law, teaching, or other specialized occupations. 
  • Investor Visa (Visa de Inversionista): This visa is for individuals planning to invest in Ecuador or establish a business there. 

Employers in Ecuador are responsible for organizing and withholding employees’ income tax payments and social security fund contributions every month. Ecuadorean employers contribute 12.15% of their total payroll to the social security system.  


The standard corporate income tax rate in Ecuador is 25%.  

Employees in Ecuador are entitled to a state pension, a 13th-month bonus, profit sharing, public holidays, paid leave (sick leave, annual leave, and parental leave), and health insurance. 

Unilateral changes to an employees contract are not permitted in Ecuador. Both parties must agree upon changes to an employees working conditions. So working contracts should be in writing, with all amendments signed by the employer and employee together.  

In addition to public and private healthcare, the Ecuadorian Social Security Institute (IESS) provides healthcare services to individuals who are affiliated with the social security system. 

In an indefinite-term contract (the standard employment contract), the employee is entitled to severance payments on termination as follows:  



  • In case of employee resignation, the employee is entitled to payment of 25% of their last monthly salary for each year of service.  
  • If the termination was a sudden dismissal without just cause, the employee is entitled to a month’s salary per year of service but no less than 3 monthly salaries.  

In Ecuador, labor regulations are primarily regulated and overseen by the Ministry of Labor (Ministerio de Trabajo). 

Employees in Ecuador are eligible for paid leave on the countrys 9 nationally recognized public holidays. These may also include local or regional holidays.