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Ecuador IESS salary and pension rules

Updated 1 time since CLSTR started tracking revisions of this situation.

What changed

2026-07-29 18:13 UTC → 2026-08-01 16:32 UTC · added removed

In late July 2026, Ecuador’s 2026 the Instituto Ecuatoriano de Seguridad Social (IESS) issued detailed guidance on two core worker benefits. On 20 July, July the Ministry of Labour set a 15 August 2026 deadline for employers to pay the mandatory 14th‑salary bonus (the “school (“school bonus”), outlining describing payment options, penalty provisions, penalties and the calculation base (US$482 unified basic salary). The same notice described the IESS reserve‑fund mechanism, equal to 8.33 % of a worker’s salary, which accrues after two years of continuous employment and can be accessed on unemployment, retirement, or other qualifying events. A week later, on reserve‑fund contribution. On 28 July, July IESS clarified its pension‑calculation method. Pensions are based on pension calculation, using the average of a contributor’s the five highest salary years, multiplied by years and a coefficient tied to based on total years of contributions (1.00 for 40+ years, 0.75 for 30 contribution years, decreasing for shorter periods). Eligibility criteria were also detailed, ranging from 40 years of contributions at any age to various age‑and‑service combinations (e.g., 60 years with 30 years of contributions). Minimum eligibility thresholds and maximum pension amounts are indexed to minimum/maximum amounts. A further notice on 31 July refined the current 14th‑salary rules. It confirmed the benefit equals one unified basic salary. Together, salary (US$482) and introduced regional payment dates: workers in the notices illustrate Sierra and Amazonía must receive it by 15 August, while those on the Coast and in the Galápagos by 15 March, matching the school calendar. The guidance also detailed proportional amounts for employees who did not complete a full year, calculating a monthly rate of SBU/12, and allowed either a lump‑sum payment on the scheduled date or monthly installments upon written request. Together these updates show IESS’s ongoing effort to codify and communicate the parameters governing standardize both short‑term salary bonuses and long‑term retirement benefits for Ecuadorian workers.

Versions

  1. 2026-08-01 16:32 UTC Ecuador IESS salary and pension rules
  2. 2026-07-29 18:13 UTC Ecuador IESS salary and pension rules

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