Managing payroll in Ecuador can be challenging, and ensuring compliance can be difficult, with language barriers and changing regulations each year. The major industries in Ecuador include oil, processed foods, and textiles. There are a variety of business types in Ecuador and corporate tax rates vary based on the size of the company.

Labor and Payroll Considerations in Ecuador:

  • Fixed-term employment contracts must be in writing
  • Minimum wage is $394 per month
  • Social security and income tax are withheld from employee pay by the employer
  • Employers must contribute to social security
  • Employers must pay 0.5% of payroll to a national fund used for training purposes, and 0.5% of payroll to an education program
  • Foreign workers must have a 12-VI work visa, but they need a work contract signed by an employer to apply for a visa

Payroll in Ecuador can be complex, but Blue Marble has simplified global payroll with cloud-based payroll technology and aggregated monthly reporting. You can view your payroll in real-time across all countries and currencies, and our hybrid service model gives you a US-based team and in-country experts in Ecuador when questions come up. Get your payroll in compliance – click here to learn more