When am I entitled to reserve funds?

After completing more than one year of service with the same employer. None accrue during the first year.

How much are reserve funds?

8.33% of contributable compensation each month, equivalent to one month's compensation per year of service.

What's the difference between receiving it monthly or accumulating it at the IESS?

Monthly, you receive it every month with your salary; accumulated, it's deposited at the IESS and you withdraw or claim it there. The value is the same.

Is it part of the IESS contribution?

No. It's a separate benefit from the ordinary contribution (9.45% employee and 11.15% employer).

What happens if I change employers before completing the year?

The right to reserve funds is generated separately with each employer, starting from that employer's own first year of continuous service; if you change jobs before completing it, no reserve funds accrue for that period with that employer.

Ecuador Reserve Funds Calculator

Ecuador · Employment

Calculate your reserve funds (fondos de reserva) in Ecuador: 8.33% of your compensation each month, starting once you complete one year of service with the same employer. Compare direct monthly payment with accumulation at the IESS.

How is it calculated?

Monthly reserve fund = contributable compensation × 8.33% (equivalent to one month of compensation per year worked: 1/12). The right to it is generated after completing one year of service with the same employer: no reserve funds accrue during the first year. From the second year on, it's calculated each month on the contributable compensation. You can receive it monthly along with your salary or leave it accumulated at the IESS; the amount is the same, what changes is where the money sits and how you claim it. The accumulated fund in this calculator is the monthly fund × the number of months (by cutoff date or the ones you specify). Reserve funds aren't part of the ordinary IESS contribution (9.45% employee and 11.15% employer). This is a rough estimate with constant compensation, not an official calculation.

Examples

Hired 03/10/2025: no entitlement yet in the first year (cutoff 03/09/2026)
No entitlement yet: it starts on 03/10/2026. Accumulated fund: 0.
Hired 01/01/2024 with 1,000, cutoff 01/01/2026, accumulation at the IESS
Entitlement starts on 01/01/2025: 83.30 a month and 12 accumulated months = 999.60.

When they accrue and how much they are

Reserve funds are 8.33% of your compensation each month, and they start accruing once you complete one year of service with the same employer: there are none during the first year.

Method	How you receive it
Monthly	Every month along with your salary
Accumulated at the IESS	Deposited at the IESS and claimed there

Sources

IESS / Ministry of Labor (Ecuador) — Reserve funds: 8.33% of compensation starting in the second year of service (Labor Code, Art. 196) — in effect since January 2026 · reviewed on September 25, 2026
IESS (Ecuadorian Social Security Institute) — Mandatory General Insurance contributions: 9.45% employee and 11.15% employer (private employment relationship) — in effect since January 2026 · reviewed on September 25, 2026

Frequently asked questions

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Ecuador IESS Contributions Calculator