Average Salary in Ecuador 2022
How much does an Ecuadorian earn?
An individual working in Ecuador makes around 1,360 USD per month on average. While those earnings are much lower than those in other countries, there have been efforts to improve the economy within Ecuador over the past few years.
As an example, in 2021, it is being predicted that the average salary will have increased to around 1,500 USD per month. This is great news for Ecuadorians who are working within their country or plan on moving there!
A significant portion of the money earned in Ecuador goes towards food, transportation, and clothing. For example, an individual may spend anywhere from 20% to over 50% of their earnings on transportation every month.
Furthermore, they may spend about 10% on dining out and drinking each month as well.
Food shopping makes up for 7%, while housing costs only take up 3%. As one can see, Ecuadorians do not need much to get by! They focus more so on spending money where they deem necessary: on food and drink in order to maintain a certain standard of living.
Salary Distribution in Ecuador
Salaries in Ecuador start at 340 USD per month and go up from there. The average salary in Ecuador is about 500 USD per month.
Most people make somewhere near the median or middle of their respective salary range, but there are definitely those at the bottom and top end of the spectrum as well.
This salary scale assumes that you will be offered a job initially and that you should work your way up from there; meanwhile, other people might be receiving more than they were first offered for other reasons such as increased expertise or project management skills where applicable, so take these numbers with a grain of salt.
The median monthly wage is $1,470 USD, which indicates that half of the population (50%) earns less than $1,470 USD and the other half earns more than $1,470 USD.
Ecuador’s economy is largely based on its agricultural sector which accounts for 11.3% of its GDP and provides employment to 35% of its labor force. Other exports in Ecuador include petroleum products and bananas. Ecuador’s GDP growth has been an average of 4% since 2010.
25% of the population earns less than 820 USD per month, whereas 75% of the population earns more than 820 USD per month.
A percentile is a percent value that sums up all numbers below it. For instance, in Ecuador, 25% of the population earns less than 820 USD per month and 75% of the population earns more than 820 USD per month.
Another way to represent this information would be an Income Distribution Curve which shows each income class’s share of total national income on the y-axis, or vertical axis, against the size of that class on the x-axis. A cumulative percentage scale runs along both axes used for reference lines at specific percentiles.
How much does the median salary vary from the average?
Both median and average salaries are indicators of a company’s or industry’s remuneration package. The median salary is the midpoint of the range of salaries that all employees receive, and can be used as an indicator for most companies’ pay scale.
For example, in the finance sector such as banks and insurance firms, most workers fall within $50,000 – $65,000 per annum which will be lower than the average salary.
On another hand, the average salary refers to the presentation of data that is calculated by adding up the values and then dividing them by a number of cases or participants.
The average salary in the finance sector is normally higher than median salaries, which can be explained by high earners who are also located in this industry
Therefore, it is crucial for companies to focus on their median salary rather than just simply using the average salary when hiring new staff.
Salary Comparisons Based on Years of Experience
What is the progression of a person’s wage over time in Ecuador?
In Ecuador, the average salary is about $1,000 a month. The average increase in pay based on years of experience is almost two times greater in Ecuador than it is in the United States.
A person with one to five years of work experience in Ecuador can expect to earn an average monthly income of just over $300. This same person would only make slightly more than $1500 per month in the United States with that many years of experience.
After ten years, the difference between the monthly salaries is even more astonishing; an experienced worker in Ecuador will earn around $2,400 while someone who has worked for ten years earns only slightly higher at $2300 in the US.
The differences continue to grow larger when looking at the 25-year experience differential. A person with 25 or more years of experience in Ecuador will make around $5,000 each month, while someone in the US with that much time would only earn about $4000 monthly.
Ecuador’s growing economy is one reason that experienced workers are paid more than workers in other countries. Another reason for this difference is that many people who work abroad return to their home country when they accumulate enough savings and spend them there instead of sending money back to families out of the country, which helps contribute to an increase in salaries over time.
The progression of a person’s wage over time in Ecuador varies between two times higher than in the United States up until it is about four times higher. This is based on the average monthly salary, which is around $1000.
The difference in pay between one to five years of work experience in Ecuador and the US is that an experienced worker in Ecuador earns nearly double what they would earn with that amount of experience in the United States.
Someone who has worked for ten years will continue to see a higher average salary even after ten years, but someone who has worked for 25+ years will only see their average salary increase slightly over time compared to someone having 25+ years of experience in the United States.
Salary Comparisons Based on Education
What is the relationship between your education level and your salary?
In Ecuador, generally, a person’s salary rises with their educational level. A university degree might not be a requirement for a job in the United States, but it is typically a requirement for employment in Ecuador.
However, some people do not pursue higher education due to financial constraints or lack of interest and must seek jobs that only require secondary schooling.
Ecuadorians believe that more school means more money. According to the 2012 World Development Index (WDI), almost 25% of the population has some form of higher education versus less than five percent who hold only an elementary certificate.
Is it worthwhile to get a Master’s degree or an MBA? Should you go on to postsecondary education?
There are pros and cons to having a Master’s degree or an MBA. The main difference between Master’s degrees and MBAs is that Master’s degrees are more focused on academic research while MBAs are more professional in nature, with an emphasis on managing businesses.
The main advantage of having a Master’s degree or an MBA is that you can find a job with it and develop your career as well as earn more money than those on whom they do not hold such degrees; plus, people with higher education typically enjoy better working conditions and more autonomy at work.
The disadvantages to getting a Master’s degree or an MBA include: for many fields, there are no real-life applications (e.g., math), they take years of studying (5+ years for PhDs), students end up owing tens of thousands of dollars in student loans, and students often move back home after graduation.
Master’s degrees and MBAs are both very valuable postsecondary qualifications that will help you get into your desired career field. Both also have advantages and disadvantages to them. There are many positive aspects to having either degree but it is important to consider the negative side as well when making your decision.
Overall, completing post-secondary education can open many doors for you especially if you continue on with more education after finishing an undergraduate degree like a Master’s or MBA.
Gender Pay Gaps in Ecuador
On average, men workers in Ecuador earn 10% more than their female colleagues across all industries. In the private sector, the difference is as high as 20%.
Despite having a law that prohibits discrimination based on gender and its maximum penalty of up to three years imprisonment, Ecuador ranked only 83rd among 145 countries in terms of women’s participation in political power.
In 2021, there is hope that Ecuador’s new General Law on Women and Coexistence will ensure equal pay for men and women in the private sector. Until then, however, salaries remain unequal.
Female employees are paid less than their male colleagues. Their salaries also remain unequal even when they have the same job, qualifications and experience.
The government of Ecuador is working to combat this discriminatory policy by limiting salary differences in the public sector to a maximum of 10%.
In addition, women are not allowed to work at night-time or overtime, making them more vulnerable to underemployment. However, although this law forbids these kinds of actions against women, it has done little for those who have already been affected.
Ecuador’s Average Annual Salary Increase Percentage
What is the percentage of yearly wage increases in Ecuador? How often do workers get rises in pay?
Employees in Ecuador are expected to have a pay raise of roughly 7% every 19 months, which is a significant increase in comparison to other countries. This is one of the highest pay raise percentages in the world.
However, there is also a strong trend that low-income earners are given larger salary increases than high-income earners.
These salary increases are expected to be able to keep up with inflation so workers do not lose money due to devalued currency. It is unclear if wage gap differences are affected by this rule as well or if it varies per company.
Employees typically have between 12-24 months to wait until their next pay rise after their first raise, however, some companies follow different rules; preferring shorter timeframes for all employees or longer timeframes on average.
Annual Growth Rates by Industry in 2022
- Banking – 9%
- Education – 9%
- Retail – 11%
- Construction – 8%
- Agriculture – 3%
- Manufacturing – 4%
- Information Technology – 8%
- Power and Energy – 10%
- Mining – 5%
Generally speaking, companies in growing sectors give their employees larger and more regular increases.
General trends in economic conditions may have a significant impact on the health of a firm, although exceptions can arise. These numbers are subject to periodic revision.
Average Rate of Salary Growth by Level of Experience
Workers on a Junior Level in Ecuador are earning about $20,000 less than the country’s average annual income. This is a marked difference from workers with 4-8 years of experience who are making about $60,000 more annually than the average income in Ecuador.
Those with 8+ years’ experience have an even higher earning potential at approximately $100,000 above the national average.
Ecuador’s annual average income is $12,581. A worker with less than 1 year of experience makes about $25,000 per year which is well below the national average (20%). Those in their second year make slightly more at around $26,000 and by the third year, workers are earning an average of $30,000 annually which begins to approach the country’s average income.
Once a worker reaches the fourth year they make approximately 30% more than Ecuadorians and in years 5-9, this increases significantly to nearly 50% higher than that of Ecuadorians. It is not until after 10+ years’ experience do these individuals earn over 100% more than what Ecuadorians earn each year on average.
Ecuadorian Bonus and Incentive Rates
How much money is granted to Ecuadorian workers as a bonus and how often does it occur?
The Ecuadorian government grants bonuses to its workers at companies on an annual basis. During these years, if the company shows a surplus and is able to pay such a bonus, it is obligated by law (a worker-employer agreement) to give the employee a bonus that has averaged 35% of his or her base salary.
On average, over the course of the last decade, approximately $1.6 billion has been granted in bonuses to Ecuadorian workers per year.
This amount is calculated based on a total population of 14 million people and an annual income of around $6600 for each citizen–the latter being a rough approximation given that immigration and remittances play a significant role in the economy as well.
However, this number does not take into account that companies can afford up to five years to pay their employees the bonus they are entitled to after achieving such surplus; many choose to do so within three years.
Types of Bonuses
Bonuses Based on Employee Performance
Employees are a valuable resource to any business, and as such, it is important that employers recognize the importance of their employees’ contributions.
Bonuses based on employee performance is one way that employers can show employees their appreciation.
Bonuses based on employee performance are a type of bonus given to an individual who has performed a job well and been determined as deserving of recognition or reward for doing so. Most businesses have performance standards that all employees need to meet.
Meeting those standards is the first step towards receiving a bonus based on employee performance. In some cases, successful completion of projects may warrant bonuses as well, but this is more likely to be given in the form of profit-sharing rather than a basis for awarding bonuses specifically.
Some companies award quarterly or yearly bonuses compared with those awarded other times throughout the year or at set points in time.
Bonuses based on Company Performance
These are bonuses that are given to employees in companies based on the performance of the company they work for.
The common types of bonuses include cash, stocks and shares, cars, holidays, extensions in life insurance policies and goods made available to shop in stores owned by the company or through online shopping services.
Companies usually base their own bonuses on the overall performance of the company itself. Bonuses are also often given out during times when a business is performing well financially or showing signs of improvement after a rough time.
In these scenarios, an employer may decide to give out bonuses as a reward to employees who have helped them get back up from where they started or encourage workers to keep going at it even harder so that their efforts begin translating into higher sales.
Bonuses for Achieving a Goal
A goal-based bonus is a great way to motivate employees. The idea behind this type of motivational tactic is that if the employee reaches a goal, he or she will get a little extra something.
This can be anything from a gift card, an extra paid day off, or even just extra recognition. The important thing about these bonuses is that they should be tied directly to reaching goals.
Often times companies strive for other types of rewards without actually tying their bonuses back to specific metrics set out by the company.
Holidays and the End of the Year Bonuses
These bonuses can be a great thing for employees. It is usually the last payment that most employees get, and they are given their bonuses during the holidays.
Bonuses like this can be a great gift for employees and sometimes can make up for the holiday season. Employees who get their bonuses are usually overjoyed when they receive them along with the holidays.
The end of the year bonuses is always fun to have but remember that it is just a bonus just like any other month. They should not expect this type of payment each time or they might be disappointed when there isn’t one in every check given in December.
End of the year bonuses might also help motivate employees to finish out their work well so that they can continue to receive money without question. This will help them become hard workers throughout the day/year/life because they don’t want to lose their jobs or stop getting paid.
Comparing the Bonuses for Different Careers in Ecuador
What makes a job worth high pay and signing bonuses in Ecuador?
Jobs like finance can get you a high salary in Ecuador as well as a signing bonus.
It’s not surprising that finance professionals receive the highest starting salaries and signing bonuses in Ecuador. High demand, high pay: The average salary for a finance professional is $40,000 USD per year and employment opportunities exist all over the country so companies compete with each other to hire them
Engineering jobs can bring similar rewards–about $36,000 USD per year on average and similar signing bonuses.
Oil and chemical engineers’ salaries are $49,000 USD per year on average in Ecuador. Construction engineers start at $35,000 USD per year on average. Geologists make about $55,000 USD a year.
Overall, the pay is good ($30,000 to $60,000 USD per year) and the bonuses can be substantial ($5,000 – 10,000 USD). The highest-paid careers in Ecuador are oil engineers.
Comparison of Bonuses based on Seniority Level in Ecuador
Senior workers in Ecuador are eligible for a bonus depending on their length of service. With the minimum wage in Ecuador around $380 per month, the amount received by senior workers is far greater than that of new employees.
This has resulted in some controversy over whether or not this system should be reformed to give newer workers a chance at higher earnings early in their careers.
The current salary structure in Ecuador puts an emphasis on experience and age. As such, all workers receive 1/12th of their monthly salary as an annual bonus after completing one full year of service with the same company.
After that point, additional bonuses are given for each subsequent year worked until they reach retirement age and stop working altogether.
Compensations for Popular Careers in Ecuador
Administration / Reception / Secretarial
- Administrative Assistant – 680 USD
- Office Manager – 1,150 USD
- Receptionist – 520 USD
- Secretary – 620 USD
- Bank Branch Manager – 2,310 USD
- Teller – 490 USD
Bookkeeping and Accounting
- Accounts Payable Clerk – 500 USD
- Senior Accountant – 680 USD
- Clerical Assistant – 420 USD
- Junior Accountant – 650 USD
General / Operations / Purchasing
- Purchasing Officer – 520 USD
- Operations Manager/Coordinator – 1,100 USD
- Logistics Coordinator – 600-820 USD
- Shipping and Receiving Clerk – 650 USD
- Office Clerk – 450 USD
- Front Desk Clerk – 535-680 USD
Marketing / Public Relations / Advertising / Publicity
- Public Relations Specialist/Coordinator – 1,150 USD
- Press Room Operator – 450-650 US
Medical / Health / Nutrition
- Patient Care Technician – 580 USD
- Dialysis Technician – 600 USD
- Medical Office Assistant – 510-650 USD
- Dental Hygienist – 1,200-1,500 USD
- Emergency Medical Technician – 550-800 USD
- Nursing Aide/Auxiliary – 450-620 USD
- Pharmacist – 1,330-2,000 USD
- Physical Therapist Assistant – 850-1,000 US
- Clinical Laboratory Technologist – 710 US
- Dietician/Nutritionist – 900-$1,100 US
- Health Administrator / Manager – 2,180 UYU (700 USD)
Legal / Public Safety / Security
- Police Officer – 900-1,150 USD
- Parole/Probation Officer – 700 US
Ecuador’s Standard Hourly Wage
Ecuador has average hourly earnings of $8 USD. But this average hourly wage also depends on the occupation of the worker.
For example, workers in the mining and petroleum industries receive an average hourly wage of $10 USD. Workers in hotel and restaurant service occupations receive an average hourly wage of only $4 USD.
Comparison of Government and Private Sector Pay
On average, public sector workers in Ecuador are paid 13% more than their private-sector colleagues in all sectors. The difference is particularly high in government administrations, to a great extent because of low-income bonuses and allowances that are not usually available in the private sector.
In Ecuador, public servants receive an annual performance bonus equivalent to 15 days’ salary as well as a 13th month’s salary at Christmas. In addition, they also get other benefits such as school subsidies for their children and subsidised credit schemes.
Public-sector workers claim these sums total to about 30% extra on top of their wages compared with similar jobs in the private sector.
- Mechanical Engineer
- Sr. Software Engineer / Developer / Programmer
- Software Developer
- Chemical Engineer
- Information Technology (IT) Manager
- Regional Sales Manager
- Project Manager
- Administrative Coordinator
- General / Operations Manager
- High School Teacher
- Information Technology (IT) Consultant
- Operations Manager
- Plant Manager, Manufacturing
- Elementary School Teacher
- Program Manager, Non-Profit Organization
- Project Manager, Information Technology (IT)
- Software Architect
- Web Developer
- Software Engineer