Employer of Record in Ecuador

For companies building teams of 10 or more across business, technical, and operational functions — not for individual hires.
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Why companies build teams in Ecuador

Lundi supports compliant employment in Ecuador for specialist hires — Quito for corporate, Guayaquil for commercial operations. USD-denominated economy with minimal currency risk. For broader Latin American scaling we typically recommend Colombia, Mexico, or Peru.

Languages

Spanish

Payroll Frequency

Monthly

Currency

USD

Capital City

Quito

Employer Tax Rate

12.15%

Ecuador's professional talent is concentrated in Quito (political and corporate capital) and Guayaquil (commercial port city). The country uses the US dollar (dollarized economy since 2000), eliminating currency risk for international employers — a meaningful operational advantage. Employer social contributions run ~11.15% above gross. Strong fit for specialist hires, Ecuadorian market presence, or operations specifically valuing USD-denominated payroll. For broader Latin American scaling Lundi typically recommends Colombia (deeper tech and BD talent), Mexico (deeper everything), or Peru (similar Andean profile).

Cost of Employment in Ecuador

What it costs to employ someone through Lundi.

Lundi's cost is the all-in cost of the employee — gross salary plus statutory employer contributions plus customary benefits — and a Lundi management fee on top. The management fee depends on team size and scope: smaller teams pay a higher per-head rate, teams of 20+ get materially better unit economics, and Build–Operate–Transfer engagements are structured separately.

The alternative paths look like: setting up your own local entity (meaningful months of legal and accounting work, plus ongoing in-country HR, payroll, and compliance infrastructure), engaging a local recruitment agency on contingency (typically a percentage of first-year compensation, paid once, with no ongoing employment relationship), or hiring as a contractor (lower upfront cost, real misclassification risk in most jurisdictions). Lundi is faster than entity setup, structurally different from contingency recruitment, and lower-risk than contractor arrangements.

Talk to us for specific pricing.

Talk to us about Ecuador

Employer Tax Costs in Ecuador

Employers in Ecuador can pay up to 12.15% in social contributions. Reserve Fund (after 1 year) will be 8.33% but is not included in total cost as not due until after 1 year.

Employee Income Taxes in Ecuador

Employees in Ecuador pay 0% to 37% in taxes depending on their income bracket. Employees also pay 9.45% in social security contributions.

Employee Probation in Ecuador

The probationary period in Ecuador is dependent on the type of role and is stipulated within the employment agreement. In general, probation periods are up to three months.

Employee Overtime in Ecuador

The standard working week in Ecuador consists of 40 hours a week, typically 8 hours a day for a five-day working week.All overtime hours more than 40 hours a week are paid at an overtime compensation rate of either 150.00% or 200.00% of the employees’ regular salary; the rate depends on the work performed during overtime and the time when the overtime was worked. Overtime hours completed must be approved by the local labor inspector.

Employee Notice in Ecuador

There is no notice stipulated notice period and employers are only required to adhere to whatever agreement spelled out in the employment contract.

Termination in Ecuador

Employee contracts can be terminated if a reasonable just cause is established, such as dishonesty, negligence, fraud, or any other work-related offenses. That aside, notice should be provided in advance – provided both parties agree to it.

How Lundi works in Ecuador

Build

We scope your team and recruit the right people in-country — finance, accounting, HR/payroll, BD, ops, or IT.
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Operate

We employ the team via our local entity and run the day-to-day — payroll, compliance, HR, and performance management.
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Transfer

When you're ready, we transition the team to your own legal entity. Or stay on Lundi's infrastructure indefinitely — your choice.
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Why Companies Choose Lundi

If you need help with anything, we're here for you

Who is Lundi for?

Lundi works with companies building teams of 10 or more across business, technical, and operational functions . Not for one-off hires or individual placements.

How is this different from an EOR?

EOR platforms employ individuals for you. Lundi recruits, employs, and operates concentrated teams — including day-to-day management, HR, and an optional path to your own entity. It's the operating model for companies that have outgrown the EOR ceiling.

Still have any questions? Talk to us.