Ecuador’s 13th salary, explained
If you work as an employee in Ecuador — or you are an expat weighing a local contract — the décimo tercer sueldo (13th salary, or “Christmas bonus”) is a mandatory extra payment your employer owes you every year. It comes from Article 111 of Ecuador’s Labor Code and equals one twelfth of everything you earned between December 1 of the previous year and November 30 of the current year. For the 2026 payment, the reference period runs from December 1, 2025 to November 30, 2026, and the lump sum is due by December 24, 2026.
Unlike your regular paycheck, the 13th salary is completely tax-free: it is exempt from IESS social-security contributions (it does not count as contributable income) and from income tax under Article 9, item 11 of the tax law (LRTI). You receive the full amount, with zero deductions.
How to use this calculator
- Pick whether you worked the full period (Dec 2025 to Nov 2026) or only part of it.
- Enter your monthly salary in US dollars (Ecuador’s currency).
- For a partial period, enter the months worked plus any extra days (payroll uses a 30-day-month convention).
- Add any overtime and commissions earned during the period — they count toward the base.
You get the lump-sum amount due by December 24, plus what the monthly installment would look like if you take it month by month.
2026 rules at a glance
| Rule | Detail |
|---|---|
| Formula | Pay earned in the period ÷ 12 |
| Reference period | Dec 1, 2025 to Nov 30, 2026 |
| Lump-sum deadline | December 24, 2026 |
| Counts toward the base | Salary, overtime, commissions and other permanent pay (Art. 95 Labor Code) |
| Excluded from the base | 14th salary, reserve funds, profit sharing, per diems |
| Monthly option | 1/12 of each month’s pay, added to the paycheck |
| IESS contributions | Exempt (not contributable income) |
| Income tax | Exempt (Art. 9.11 LRTI) |
Worked example
Case 1 — full period. Fixed salary of 600 dollars, no overtime, worked the whole period:
- Earned in the period: 600 × 12 = 7,200.00 dollars
- 13th salary: 7,200.00 ÷ 12 = 600.00 dollars, payable by December 24, 2026
- Monthly option instead: 600 ÷ 12 = 50.00 dollars per month
Case 2 — partial period with overtime. An employee hired on June 1, 2026 at 800 dollars per month who also earned 50 dollars of overtime in October:
- Earned June through November: 800 × 6 = 4,800.00 dollars
- Plus October overtime: 4,800.00 + 50.00 = 4,850.00 dollars
- 13th salary: 4,850.00 ÷ 12 = 404.17 dollars
Note the key detail: you always divide by 12, even after only 6 months of work. The formula pro-rates automatically — no separate proportional calculation needed.
Frequently asked questions
What income counts toward the 13th salary?
Everything earned for your work during the period: base salary, overtime (both “suplementarias” and “extraordinarias”), commissions and other permanent compensation. The 14th salary, reserve funds (fondos de reserva), profit sharing and per diems are excluded.
Lump sum or monthly — which one applies to me?
Since a 2015 labor reform, Article 111 makes the monthly scheme the legal default: each month you get 1/12 of that month’s pay on top of your salary. Getting it accumulated as a December lump sum requires a written request — though in practice most workers choose the lump sum.
Do I pay social security or income tax on it?
No. The 13th salary is exempt from IESS contributions and from income tax (Article 9, item 11 of the LRTI). What the calculator shows is what lands in your account.
I only worked part of the year — do I still get it?
Yes. You are owed the proportional share: add up only what you actually earned during the months and days you worked, then divide by 12. If you leave the company before December, the proportional amount is paid out with your final settlement.
Is this the same as the 14th salary?
No. The 14th salary (décimo cuarto) is a separate benefit equal to one unified basic salary — 482 dollars in 2026 — regardless of your pay, with different dates by region. The 13th salary depends on your earnings.
This tool gives an informational estimate under the rules in force in 2026 — it is not legal or tax advice; confirm your case with Ecuador’s Ministry of Labor or a professional. Labor figures change every year, so review this calculator annually.