Employers must register their employees at the Ecuadorian Social Security Institute (IESS), on their first day of work. They also have to give notice about employees’ dismissals, modifications in their wages, position, occupation, or any other work conditions to the same entity.
Employees’ contributions must be withheld by the employer by deducting them from the salary and must be settled in the IESS together with the employer’s contribution, within the first fifteen days of the subsequent month.
Contributions are estimated on the employee’s total monthly salary, including overtime, commissions, bonuses, fees, or any other additional and regular payment in the industry (excluding the 15% sharing on net profits).
Monthly contributions are paid to the IESS on the basis of the following percentages: Employer 12.15% of the salary Employee 9.45% of the salary (worker in general)
Monthly basic salary is US$386.00.
Under labour laws, workers have the right to participate in company profits by 15% applicable to liquid or accounting profits each year.