Remote makes employment in Uruguay easy. With our localized contracts, easy invoice management, and best-in-class compliance, you can grow your global team with confidence.
The Oriental Republic of Uruguay (Spanish: República Oriental del Uruguay) is a democratic constitutional republic that boasts the 12th largest GDP in the Latin Americas, unrivalled levels of democratic freedom, press freedom, political stability, economic equality, and per capita income in South America.
With economic equality and poverty declining while GDP continues to rise, Uruguay is home to a developed workforce where enterprising businesses can expand to, with a positive economic outlook for the foreseeable future.
3,518,552 (est. 2019)
Ease of doing business
Cost of living index
VAT - standard rate
GDP - real growth rate
Looking to employ workers in Uruguay? Companies hiring in Uruguay must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.
Remote can employ your team in Uruguay on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your Uruguay team. You can also pay contractors now in Uruguay with Remote.
Uruguay adheres to labor standards spelled out in the Constitution, several government edicts, and International Labor Organization statutes that are designed to provide employee protections and secure workers’ rights for Uruguay’s workforce of 1.6 million.
Common questions that could come up during the hiring process include minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Uruguay.
Below are national public holidays applicable for all regions in this country. Remote customers have access to a detailed list of regional public holidays within the Remote platform. Sign up now to access all public holiday information.
|Sunday, January 1, 2023||New Year’s Day|
|Monday, May 1, 2023||Labor Day|
|Tuesday, July 18, 2023||Constitution Day|
|Friday, August 25, 2023||Independence Day|
|Monday, December 25, 2023||Christmas Day|
The minimum wage is fixed at 19,364 Uruguayan Pesos ($466.27) per month.
For customers of Remote, all employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.
We can help you get a new employee started in Uruguay fast. The minimum onboarding time we need is only 14 working days.
In Uruguay, 13th month salary (or just 13th salary) is a bonus payment made to employees that is equivalent to 1/12 of the employee's annual salary, paid by the employer in two installments during a period that runs from December 1 of one year to November 30 of the following year.
The 13th month salary in Uruguay is to be paid in two installments:
At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practicing “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).
Our benefits packages in Uruguay are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:
Learn how employment taxes affect your payroll and your employees’ paychecks in Uruguay.
5% - Health Insurance contribution
0.1% - Labor Re-conversion Fund
7.5% - Pension Fund contribution
0.025% - Labour Credit Guarantee Fund
15% - Pension Fund contribution
3 – 8% - Health Insurance contribution
0.1% - Labor Re-conversion Fund
(in Uruguayan Pesos)
0% - Up to 379,596 ($8643.40)
10% - 379,596 - 542,280 ($8643.40 - $12347.72)
15% - 542,280 - 813,420 ($12347.72 - $18521.57)
24% - 813,420 - 1,626,840 ($18521.57 - $37043.15)
25% - 1,626,840 - 2,711,400 ($37043.15 - $61738.58)
27% - 2,711,400 - 4,067,100 ($61738.58 - $92607.87)
31% - 4,067,100 - 6,236,220 ($92607.87 - $141998.73)
36% - Above 6,236,220 (i.e., $141,998.73)
Employees are entitled to 20 days’ vacation annually, used in the year following the vacation accrual. After the fifth year of employment, an extra day off is acquired, with a day added every four years until it maxes out at 25 days’ vacation annually.
During their annual vacation, employees are entitled to their full wages, as well as vacation benefits equivalent to 100% of their normal wages.
There are 12 public holidays employees can take off work annually. Employees are entitled to mandatory paid time off on five of these holidays: January 1, May 1, July 18, August 25, and December 25, and must be paid overtime if required to work on a holiday.
The first three days of an employee’s illness is compensated in full by the employer. Starting the fourth day of an illness, employees are entitled to sickness benefits equivalent to 70% of their normal wages.
Female employees are entitled to 14 weeks’ of paid maternity leave starting six weeks before delivery, with benefits equivalent to their full wages paid by the social security office.
Parents are entitled to just 13 days parental leave in total (of which 10 days are paid by Social Security and three by the employer).
University students can take anywhere from six to 12 days off annually to attend to their studies, i.e., take examinations, process admissions, etc.
Employers have the right to terminate employees, provided prior notice is provided, along with a severance package.
There is no officially stipulated notice period in Uruguay.
The figure varies based on whether the workers' payment cycle is monthly or daily (except for dismissal with cause, which in the Uruguayan system implies misbehavior by the employee). The length of employment agreement also impacts severance: