Ecuador sets Aug 15 2026 deadline for 14th‑salary payouts and details IESS reserve fund rules

Ecuador’s labor law requires the 14th‑salary bonus, also known as the school bonus, to be paid by 15 August 2026. The maximum amount equals the Unified Basic Salary of US$482, calculated proportionally for workers with less than a full year of service (US$40.16 per month). Employees may request monthly installment payments of the bonus, while those who do not will receive a lump‑sum by the deadline. Employers who miss the deadline face fines imposed by the Ministry of Labour.

The Instituto Ecuatoriano de Seguridad Social (IESS) also manages reserve funds equal to 8.33 % of a worker’s salary, representing an extra month’s pay for each year of continuous employment with the same employer. These funds accrue after the second year, can be paid monthly or retained in an individual IESS account, and may be withdrawn if the worker becomes unemployed, retires, or meets other eligibility criteria.