Country fileECUSDVerified 2026-09-24
EC 
Employer of Record in Ecuador: what one employee really costs
Ecuador, Latin America. One software engineer at $36,000 gross per year, priced through 12 providers with a published fee, paid in US dollars, with no currency conversion. Change the salary and headcount below.
- Employer on-cost
- +21.8%
- statutory charges on top of gross
- All-in per month
- $3,854 – $4,354
- salary + charges + published fee, cheapest to dearest listed provider
- Onboarding through an EOR
- 2 days
- per Deel - Hire employees in Ecuador ('your next hire could start in as little as 2 days with Deel')
Hiring one software engineer in Ecuador at $36,000 gross a year costs about $655 a month in statutory employer charges (+21.8%), plus an EOR fee of $199 to $699 per month depending on the provider: $3,854 to $4,354 all-in, before deposits, FX margins and add-ons. Prices checked 2–24 Sept 2026.
Disclosure Some provider links on this page are affiliate links: if you become a customer after clicking, the provider may pay us a referral fee. It never changes the price you pay, and it never changes the numbers on this page, which come from official sources and are dated. How we are paid
Cost engine · preset to Ecuador
Price your own hire, line by line.
employee inatgross / year
USD 36,000 gross / year · paid in US dollars, no conversion
| Per employee | Rate | Per month |
|---|---|---|
| Gross salary | $3,000 | |
| Employer social security contribution (aporte patronal, IESS) | 11.15% | $335 |
| Payroll contribution formerly for IECE and SECAP (0.5% + 0.5%) | 1% | $30 |
| Fourteenth salary (decimocuarta remuneracion), one basic wage a year | flat | $40 |
| Thirteenth salary (decimotercera remuneracion) | flat | $250 |
| Employer on-cost | +21.8% | $655 |
| Cost of employment, before EOR fee | $3,655 |
RemoFirstLowest total
$3,854/ month · 1 employee
- Fee / mo
- from $199
- Per year
- $46,244
- Fee share
- 5.2%
Checked 2 Sept 2026
Get a RemoFirst quotePapaya Global
$4,154/ month · 1 employee
- Fee / mo
- from $499
- Per year
- $49,844
- Fee share
- 12.0%
Checked 2 Sept 2026
Get a Papaya quoteDeel
$4,254/ month · 1 employee
- Fee / mo
- from $599
- Per year
- $51,044
- Fee share
- 14.1%
Checked 2 Sept 2026
Get a Deel quoteEmployer charges from official sources; provider fees are list prices on the dates shown; deposits, FX margins and add-ons are not included. Not legal or tax advice. Methodology
14 providers, one scenario, all-in totals.
| Provider | EOR fee / employee / mo | All-in / mo, 1 hire | Deposit | Countries | Checked | Quote |
|---|---|---|---|---|---|---|
| RemoFirst EOR in 185+ countries from $199 per employee per month, no annual contract. | from $199 | $3,854 | Not stated on the pricing page | 185+ | 2 Sept 2026 | Get a quote from RemoFirst· $3,854/mo |
| Rivermate EOR in 180+ countries from $319 to $639 per employee per month. | from $319 | $3,974 | Not stated on the pricing page | 180+ | 2 Sept 2026 | Get a quote from Rivermate· $3,974/mo |
| Pebl Velocity Global, renamed Pebl in 2026. Prints $399 per employee per month. | from $399 | $4,054 | Not stated on the pricing page | 185+ | 22 Sept 2026 | Get a quote from Pebl· $4,054/mo |
| Playroll EOR in 180+ countries from $399 per employee per month; deposit of one month's salary. | from $399 | $4,054 | Fully refundable security deposit equivalent to one month's salary when onboarding an employee (pricing page). | 180+ | 2 Sept 2026 | Get a quote from Playroll· $4,054/mo |
| Multiplier EOR from $459 (annual) or $499 (monthly) per employee, plus mandated add-ons. | from $499 $459 billed annually | $4,154 | Refundable security deposit required per employee by the EOR terms (effective 1 June 2026), sized by Multiplier; not on the pricing page. | 150+ | 24 Sept 2026 | Get a quote from Multiplier· $4,154/mo |
| Papaya Global EOR starting from $499 per employee per month, quote-based, 160+ countries. | from $499 | $4,154 | Not stated for EOR on the pricing page (the contractor block states 'No deposit required'). | 160+ | 2 Sept 2026 | Get a quote from Papaya Global· $4,154/mo |
| Borderless AI EOR at $579 per employee per month, no deposit or pre-funding, 170+ countries. | $579 | $4,234 | No deposit: 'No upfront deposits or pre-funding required' (pricing page). | 170+ | 24 Sept 2026 | Get a quote from Borderless AI· $4,234/mo |
| Atlas HXM EOR from $599 through its own entities, plus an Agent of Record at $199. | from $599 | $4,254 | Not stated on the pricing page | 160+ | 21 Sept 2026 | Get a quote from Atlas HXM· $4,254/mo |
| Deel EOR in 130+ countries, starting at $599 per employee per month. | from $599 | $4,254 | Not stated on the pricing page | 130+ | 2 Sept 2026 | Get a quote from Deel· $4,254/mo |
| G-P EOR in 180+ countries from $599, with no minimum contract length. | from $599 | $4,254 | Not stated on the pricing page | 180+ | 24 Sept 2026 | Get a quote from G-P· $4,254/mo |
| Oyster EOR in 120+ countries at USD 699 per employee per month; refundable deposit. | $699 | $4,354 | Refundable deposit required for EOR team members 'to initiate the engagement and to ensure on-time payments' (pricing FAQ). | 120+ | 24 Sept 2026 | Get a quote from Oyster· $4,354/mo |
| Remote EOR in 90+ countries at $699 per employee per month, no deposit. | $699 | $4,354 | No deposit: 'We collect reserve payments in rare, high risk circumstances' (pricing FAQ). | 90+ | 2 Sept 2026 | Get a quote from Remote· $4,354/mo |
| Rippling EOR bundled with the Rippling platform; custom quote only. | Quote only | — | Not stated on the pricing page | — | 24 Sept 2026 | Get a quote from Rippling |
| Safeguard Global EOR sold alongside entity setup and payroll; no price published. | Quote only | — | Not stated | 187+ | 21 Sept 2026 | Get a quote from Safeguard Global |
Same salary and statutory charges in every row; only the fee segment changes.
What Ecuador adds on top of the salary, and where each rate comes from.
Rates apply to the base named in each line; capped lines stop growing above the ceiling. Engine assumptions: Costs shown for the first year of service; the fondo de reserva adds 8.33% of pay from the thirteenth month = 1; The 15% workers' profit share is carried at zero, so the total below is a floor = 0.
| Line | Employer rate | Base & ceiling | Source |
|---|---|---|---|
| Employer social security contribution (aporte patronal, IESS)Private-sector employees (sector privado bajo relacion de dependencia) | 11.15% | Gross salary IESS Consejo Directivo resolution C.D. 515, annex 5, 'Ano 2021 en adelante', table for private-sector employees: 'Total Aportes' personal 9,45, patronal 11,15, total 20,60. The employer's 11.15% is split between pensions (3.82), health (5.16), work risks (0.38), unemployment (1.00), peasant social insurance (0.35) and administration (0.44); the Consejo Directivo has reallocated that split between branches several times (resolution C.D. 501 of 2016 used a different one) without changing the 11.15% the employer pays. The work-accident cover is inside this rate, so no separate activity-rated premium applies. Article 11 of the Ley de Seguridad Social sets the contribution base as all regular pay and puts a floor at the basic wage; that article sets no ceiling. | IESS2026-09-24 |
| Payroll contribution formerly for IECE and SECAP (0.5% + 0.5%) | 1% | Gross salary Codigo Organico Monetario y Financiero, eleventh general provision: 'La contribucion de 1% de las planillas de pago al Instituto Ecuatoriano de Seguridad Social, que se estan transfiriendo al Instituto Ecuatoriano de Credito Educativo y Becas, IECE (0,5%) y al Servicio Ecuatoriano de Capacitacion Profesional SECAP (0,5%) ... sera depositada en la Cuenta Unica del Tesoro Nacional ... a partir del 1 de enero de 2015.' The employer still pays it on the IESS payroll; only its destination changed. El Universo reported on 23 May 2026 that a bill to return the SECAP half to SECAP had not yet been examined by the Asamblea, so the charge stands as it is. | Codigo Organico Monetario y Financiero (Registro Oficial 332, 12 September 2014; consolidated to Registro Oficial 309, 21 August 2018), disposicion general decima primera2026-09-24 |
| Fourteenth salary (decimocuarta remuneracion), one basic wage a year | USD 482 / yr | Fixed amount per employee Article 113 of the Codigo del Trabajo: a monthly bonus 'equivalente a la doceava parte de la remuneracion basica minima unificada para los trabajadores en general', which the worker may ask to receive in one sum by 15 March (Costa and Galapagos) or 15 August (Sierra and Amazonia). Twelve twelfths make one basic wage a year, whatever the salary. The Ministerio del Trabajo announced on 15 December 2025 that the Salario Basico Unificado for 2026 is USD 482. Article 95 excludes this bonus from remuneration, so no contribution falls on it. | Ministerio del Trabajo2026-09-24 |
| Thirteenth salary (decimotercera remuneracion) | 1 month | Added to the annual costArticle 111 of the Codigo del Trabajo: employers pay 'mensualmente, la parte proporcional a la doceava parte de las remuneraciones que perciban durante el ano calendario', or in one sum by 24 December at the worker's written request, calculated under article 95. Article 95 in turn excludes 'la decimotercera y decimocuarta remuneraciones' and the fondo de reserva from remuneration, so for a fixed salary this is one month a year. It carries no IESS contribution: article 11 of the Ley de Seguridad Social does not list it among the parts of the contribution wage. | Codigo del Trabajo, articulos 95 y 111 (Codificacion 17, Registro Oficial Suplemento 167 of 16 December 2005, as last amended 22 June 2020)2026-09-24 |
| Reserve fund (fondo de reserva), from the thirteenth month of service not in total | — | Article 196 of the Codigo del Trabajo: one month of pay 'por cada ano completo posterior al primero de sus servicios', paid to the IESS or to the worker each month. That is 8.33% of pay, due only once the employee has served more than a year. It is left out of the first-year total above; add it from the second year, when the statutory bill moves from about 21.8% to about 30.2% of gross at the example salary. | Codigo del Trabajo, articulo 196 (Codificacion 17, as last amended 22 June 2020)2026-09-24 |
| Workers' profit share (participacion en utilidades, 15%) not in total | — | Carried at zero because article 97 of the Codigo del Trabajo sets it at 15% of the employer's net profit, 10% split equally among the workforce and 5% by family dependants. Under an employer of record that is the provider's entity, so it depends on the provider's profit and headcount rather than on this salary. Deel's Ecuador page lists it among the payroll costs; ask any provider how it is handled and billed. | Codigo del Trabajo, articulo 97 (Codificacion 17, as last amended 22 June 2020)2026-09-24 |
| Employer on-cost at $36,000 | +21.8% | $7,856 a year, $655 a month |
EOR or your own entity
Fees scale with headcount. An entity does not.
Ecuador uses the US dollar, so the salary, the fee and the statutory charges share one currency and no exchange rate moves the budget. The headline 12.15% is the IESS contribution of 11.15% plus the 1% payroll charge that once funded IECE and SECAP and has gone to the Treasury since 2015. Two salaries come on top: the thirteenth, one month of pay, and the fourteenth, one basic wage of USD 482 in 2026 whatever the salary, neither of them subject to contributions. The step to plan for is the fondo de reserva, 8.33% of pay from the thirteenth month of service. Deel's Ecuador page puts a start through its employer of record 'in as little as 2 days' and lists a one-off USD 80 wet-ink contract handling fee.
Fees grow with every hire; the charges line is owed under an entity too.
| Headcount | RemoFirst fees / yr | Borderless AI fees / yr | Statutory charges / yr |
|---|---|---|---|
| 1 | $2,388 | $6,948 | $7,856 |
| 3 | $7,164 | $20,844 | $23,568 |
| 5 | $11,940 | $34,740 | $39,280 |
| 10 | $23,880 | $69,480 | $78,560 |
| 20 | $47,760 | $138,960 | $157,120 |
Statutory charges are owed either way; the provider fee is the only line an entity removes, against the cost of incorporating and running local payroll.
Employment terms that move the cost
- Paid leave
- 15 days
- Public holidays
- 11 · midweek dates can move to Monday or Friday
- 13th month
- Mandatory
- Probation
- up to 3 months
- Notice
- Article 184 of the Codigo del Trabajo gives the worker's resignation (desahucio) at least 15 days' written notice, which the employer may shorten. The employer has no notice route: a dismissal without legal cause is a despido intempestivo under article 188, owed three months of pay up to three years of service and one month per year beyond, capped at 25 months, with a part year counted as a full one. The 25% bonus of article 185, a quarter of the last monthly pay per year of service, is owed on top, and also when the contract ends by resignation or by agreement. Probation, up to 90 days on a first indefinite contract (article 15), can be ended freely by either side.
- Reviewed
- 2026-09-24
Get a quote for Ecuador.
The lowest published total here, next to the two providers searched for most often (the rule). Totals for 1 hire at $36,000. Ask each provider about deposits, FX margins and mandatory add-ons for Ecuador: those are the lines that move.
Get a RemoFirst quote· $3,854/mo Get a Papaya quote· $4,154/mo Get a Deel quote· $4,254/mo
Disclosure Some provider links are affiliate links; they never change the numbers on this page. Details
Questions people ask before booking a demo
- How much does an employer of record cost in Ecuador?
- In the first year, about 21.8% of gross on top of salary at the example salary: 11.15% to the IESS, 1% former IECE and SECAP contribution, the thirteenth salary worth one month, and the fourteenth salary of USD 482. On a US$36,000 salary that is about US$655 a month before the provider's fee, which the table on this page prices provider by provider.
- Why do guides quote 12.15% for Ecuador?
- Because 12.15% is the monthly payroll charge: 11.15% of employer contribution to the IESS and 1% that the Codigo Organico Monetario y Financiero sends to the Treasury, formerly split between IECE and SECAP. It leaves out the thirteenth and fourteenth salaries, which carry no contributions, and the fondo de reserva that starts in the second year.
- When does the fondo de reserva start?
- After the first full year of service. Article 196 of the Labour Code grants one month of pay for each complete year after the first, paid monthly as 8.33% of pay. At the example salary the statutory bill moves from about 21.8% to about 30.2% of gross from the thirteenth month, about US$250 a month more.
- How many public holidays and leave days are there in Ecuador?
- Article 65 of the Labour Code lists 11 days of rest: 1 January, Carnival Monday and Tuesday, Good Friday, 1 and 24 May, 10 August, 9 October, 2 and 3 November and 25 December; a midweek date can move to a Monday or Friday. Annual leave is 15 days including non-working days, plus one day per year of service after five years, up to 15 more.
- What does it cost to end an employment contract in Ecuador?
- The worker resigns with 15 days' written notice. An employer that dismisses without legal cause owes three months of pay up to three years of service, then one month per year up to 25 months, plus 25% of a month's pay per year of service. During a probation of up to 90 days either side can end the contract freely.