Employer IESS in Ecuador 2026: employer contribution, reserve fund, step-by-step

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If you have employees in Ecuador each payroll costs about 33% more than the headline salary. This guide breaks down each percentage, when it is paid, on what base it is computed, and where it is reported.

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1. 2026 rates

  • Personal contribution: 9.45% deducted from employee.
  • Employer contribution: 11.15% on top of salary, paid by company.
  • Reserve fund: 8.33% (1/12 of salary), starts month 13 of employment.
  • IECE / SECAP: 1% (professional training), paid by company.

2. Numeric example

Employee nominal monthly USD 800. Cost to company:

  • Gross salary 800.00
  • Employer IESS (11.15%) 89.20
  • IECE + SECAP (1%) 8.00
  • Reserve fund (8.33%) 66.64 (from month 13)
  • 13th salary (1/12) 66.67
  • 14th salary (SBU/12) 39.17

Total monthly cost: USD 1 069.68. The 800 salary costs 33.7% more.

3. Personal contribution

9.45% deducted from gross. On USD 800: deduction USD 75.60, net USD 724.40 (before IR if applicable).

4. Reserve fund

Starts month 13. Employee may request monthly payment (most common) or accumulation at IESS, with withdrawal after 3 years.

5. 13th and 14th salary

  • 13th: 1/12 of total earned Dec→Nov, paid by Dec 24. Can be monthlyized.
  • 14th: current SBU (USD 470 in 2026). Paid by Mar 15 (Coast) or Aug 15 (Sierra). Prorated if < 1 year.

6. Profit sharing 15%

  • 10% equal among all workers.
  • 5% proportional to family burdens.

Paid by April 15 of next year.

7. Labor tax calendar

  • Monthly 15th: prior month IESS contributions.
  • April 15: form 107 + profit sharing.
  • March 15 / Aug 15: 14th salary.
  • Dec 24: 13th salary.

8. Common errors

  1. Forgetting the 33% when budgeting hires.
  2. Confusing contribution salary with nominal.
  3. Not provisioning monthly for 13th and 14th.
  4. Missing reserve fund from month 13.

9. Related calculators

Reference only. Verify with your accountant and IESS / Ministry of Labor.