What is Ecuador’s 14th salary (décimo cuarto sueldo)?
If you work as an employee in Ecuador — or you are an expat weighing a local contract — you are entitled to two extra annual payments on top of your regular wage. The second one, the décimo cuarto sueldo or “school bonus”, is set by Article 113 of the Labor Code and equals one Unified Basic Salary (SBU) per full year of service. It does not depend on how much you earn: an employee making $500 a month and one making $3,000 both receive the same amount.
For 2026 the SBU is $482.00, fixed by Ministerial Agreement MDT-2025-195 (published December 18, 2025), up $12 from the $470 of 2025. If you worked only part of the reference period, you receive a pro-rata share based on days worked. Best of all, the payment is exempt from IESS social-security contributions and from income tax (Art. 9.11 of the tax law), so it arrives with zero deductions.
2026 regional periods and deadlines
Ecuador splits the payment by region so the money lands right before each school year starts:
| Region | Reference period | Payment deadline |
|---|---|---|
| Coast and Galápagos | March 1, 2025 to February 28, 2026 | March 15, 2026 |
| Highlands (Sierra) and Amazon | August 1, 2025 to July 31, 2026 | August 15, 2026 |
How the 2026 calculation works
| Rule | Value |
|---|---|
| Full reference period worked | 1 SBU = $482.00 |
| Pro-rata by days | (482 ÷ 360) × days worked |
| Day-count convention | 30-day months, 360-day period |
| Monthly instalment | 482 ÷ 12 = $40.17 per month |
| IESS and income tax | Exempt — paid in full |
The calculator follows the commercial 360-day convention (every month counts as 30 days), the standard used by Ecuadorian payroll. A few sources divide by 365 calendar days instead; the difference is only cents, but ask your employer which convention they apply.
To use the tool, pick your region (it shows your reference period and deadline), state whether you worked the full period or enter your complete months plus loose days, and choose between the lump-sum payment and the monthly mode, where a twelfth is added to each paycheck.
Worked example
An employee on the Coast hired on November 1, 2025. The Coast period runs from March 1, 2025 to February 28, 2026, so they worked November, December, January and February:
- Days under the 30-day convention: 30 + 30 + 30 + 30 = 120 days
- Value per day: 482 ÷ 360 = $1.3389
- Pro-rata 14th salary: 1.3389 × 120 = $160.67
- Deadline: March 15, 2026
By contrast, a Sierra employee who worked the whole period (August 1, 2025 to July 31, 2026) receives the full SBU: $482.00 by August 15, 2026 — or $40.17 per month under the monthly mode.
Frequently asked questions
Does the 14th salary depend on my wage?
No. Unlike the 13th salary (which averages your actual pay), the 14th is a flat benefit: everyone gets 1 SBU or its pro-rata share. Part-time employees receive it in proportion to their working hours.
How much is the monthly instalment in 2026?
482 ÷ 12 = $40.17 per month. Watch out: several websites list $41.17 or $41.16 — that figure is an arithmetic mistake. The correct 2026 value is $40.17.
Is the 14th salary taxed or subject to IESS?
No. It is not part of the IESS contribution base and it is exempt from income tax, so you receive the gross amount in full.
Lump sum or monthly — which applies to me?
Since the 2015 labor reform, the monthly mode is the legal default, and accumulating it until the deadline requires a written request from the employee. In practice most workers choose the accumulated payment in March (Coast/Galápagos) or August (Sierra/Amazon).
What if I leave my job before the payment date?
Your employer must settle the pro-rata share for the days you worked within the period, using the same formula: (482 ÷ 360) × days.
This tool provides an informational estimate under the rules in force for 2026 (SBU of $482.00, Ministerial Agreement MDT-2025-195) and is not legal or employment advice. The SBU is reset every December for the following year, so review this calculator annually.