Payroll in Ecuador
Get your Ecuadorian payroll's IESS contributions, décimo cuarto, and fondos de reserva right from the first payslip, so a template built for a single-bonus LATAM country never leaves you a month short.
Décimo Tercero Deadline
December 24
Tax ID
RUC
Primary Registry
IESS
Payroll in Ecuador: What You Need to Know
IESS employer contribution runs at 11.15% of gross salary plus a 1% employer-paid training levy split between IECE and SECAP, with employee withholding at 9.45%. Décimo Tercero, one month's salary accrued monthly, is paid by December 24, alongside Décimo Cuarto, a distinctive second bonus equal to one SBU, USD 482 for 2026, paid on a regional date in March or August depending on location. Fondos de reserva accrue at 8.33% of remuneration per month starting in month 13 of continuous service, either paid monthly with salary or accumulated at IESS depending on the employee's choice. Vacation runs 15 calendar days per year plus one additional day for every 5 years of service beyond the fifth year. Despido intempestivo under Article 188 triggers 3 months' last salary for up to 3 years of service, or 1 month per year capped at 25 months beyond that, plus a 25%-per-year bonificación por desahucio under Article 185 that stacks on top for unjustified dismissal. A binding 2025 Corte Nacional de Justicia precedent requires severance indemnities to use whichever of the worker's last two months' remuneration is higher, not simply the salary at the date of dismissal.
Key Requirements
IESS employer contribution at 11.15% of gross salary plus a 1% employer-paid training levy split between IECE and SECAP, with employee withholding at 9.45%
Décimo Tercero, one month's salary accrued monthly and paid by December 24, alongside Décimo Cuarto, a second bonus equal to one SBU, USD 482 for 2026, paid on a regional date in March or August
Fondos de reserva, 8.33% of remuneration per month starting in month 13 of continuous service, paid monthly or accumulated at IESS depending on the employee's choice
Vacation, 15 calendar days per year plus one additional day for every 5 years of service beyond the fifth year
Despido intempestivo under Article 188, 3 months' last salary for up to 3 years of service or 1 month per year capped at 25 months beyond that, plus a 25%-per-year bonificación por desahucio under Article 185 for unjustified dismissal
A binding 2025 Corte Nacional de Justicia precedent requiring severance indemnities to use whichever of the worker's last two months' remuneration is higher, not simply the salary at dismissal
Common Challenges
Two extra bonuses, not one, and most LATAM payroll templates only budget for one
Ecuador's décimo cuarto, fixed at one SBU and paid on a regional, not national, date, is easy to miss entirely when a generic LATAM template only accounts for a single 13th-month bonus.
Fondos de reserva are a second vacation-like liability that starts automatically
Once an employee passes 12 months of continuous service, an additional 8.33% monthly obligation kicks in without any separate trigger, a silent budget increase for stable, tenured headcount.
Severance math changed in 2025, and a formula written before then will underpay
The Corte Nacional's binding precedent requires using whichever of the last two months' remuneration is more favorable to the worker, not simply the salary at the moment of dismissal.
How NavviPal Helps
IESS and training-levy contribution calculation and monthly remittance by the 15th
Décimo Tercero and Décimo Cuarto processing on their national and regional deadlines
Fondos de reserva tracking from month 13 of continuous service onward, coordinated with the employee's monthly-payout or IESS-accumulation choice
Severance calculation applying the 2025 binding precedent correctly, using whichever of the last two months' remuneration favors the worker
More on Ecuador
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