The Ministry of Labor is the governing body of Ecuador's labor policies. The manual of labor in the country regulates the ordinary workday as eight hours per day or forty per week. According to a decision by the Ministry of Labor, the unified basic salary for 2021 was USD $ 400, maintaining the figure generated for last year and this being the first time that the basic salary did not reflect any change. However, the government decreed some extra bonuses which are: USD $ 60 for all those workers who receive a unified basic salary and USD $ 100 for people who, due to the economic situation caused by COVID-19, have lost their jobs and not have been able to recover it. When setting the minimum wage, the aim is to protect employees against the payment of salaries that are sometimes very low. According to the International Labor Organization, it is a strategy that seeks to integrate with policies aimed at overcoming poverty and inequality in each country.
Daily minimum wage
As well as the monthly minimum wage, there is a stipulated ceiling to pay the employee for one day of work. For the year 2021 the daily salary corresponds to: US$ 13.33
Minimum hourly wage
For those workers who work only by the hour, the minimum hourly wage for 2020 corresponds to: US$ 1.66
Minimum night hour wage
The working hours for night shift runs from 7:00 p.m. to 6:00 a.m. and is remunerated with a 25% surcharge and corresponds to: US$ 2.075
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Labour Rates Overview as of 30 November 2020 |
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Cost |
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Daily General Worker (Unskilled casual labour) |
Daily wage: USD 13.33 Hourly wage: USD 1.66 Night hour wage: USD 2.075 |
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Daily General Worker (Semi-skilled labour) |
Please see below link: Sectoral minimum wages and rates
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Skilled Worker |
Please see below link: Sectoral minimum wages and rates
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To determine and apply the sectoral official wage please visit following site:
e.g.:
Page 92 “Branch Of Economic Activity: 2.- Activities In The Field Of Administrative Management”
Page 78 “Branches of Economic Activity: 4.- Other Activities Related to Transportation, Logistics and Storage”
Page 76 “Branches Of Economic Activity: 1.- Drivers / Drivers”
Page 50 “Branches Of Economic Activity: 1.- Computer And Related Activities 2.- Telecommunications And Computer Technicians (Technicians In Programming And Software-Technicians In Hardware) 3.- Other Services Related To Technology: Hardware And Software (Includes Tic's)”
According to Article 82 of Ministry of Labor: Compensation per hour: daily, weekly and monthly. - In any work contract the payment of remuneration will be stipulated for hours or days, if the worker's work is not permanent or if it is about periodic or seasonal tasks; and, for weeks or monthly payments, in the case of stable and continuous work. If the work contract has stipulated the provision of personal services by permanent partial days, the remuneration shall be paid taking into account proportionality in relation to the remuneration corresponding to the full day, which may not be less than the general minimum or sectoral. Likewise, the remaining benefits of the law will be paid, except for those that by their nature cannot be divided, which will be paid in full. The rate quoted above has been set by the Government of Ecuador and is the minimum legal pay rate for casual workers and the service contract salaries. While the Government of Ecuador is a signatory to the International Labour Organisation (ILO) Convention protecting worker rights, mechanisms for enforcing the provisions of the convention are weak.
Basic Salary Year Variation Chart for the Decade 2010
With Ministerial Agreement. No. MDT-2020-249 of Monday, November 30, 2020, the value of the Unified Basic Salary (SBU) for 2021 was made official.
https://www.trabajo.gob.ec/wp-content/uploads/2020/11/ACUERDO-MDT-2020-249-SBU-2021-SFGG.pdf?x42051
