Remote’s guide to employing in Uruguay.
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
Remote currently offers contractor payment and management services in Uruguay. We are busy building our own entity in the country to provide you with best possible employment solutions for your employees.
Remote’s global employment solution makes it easy for your company to employ workers in Uruguay quickly, efficiently, and in full compliance with all applicable labor laws. We take on the responsibility and legal risks of international employment so you can focus on hiring great talent and growing your business.
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.
|Saturday, January 1, 2022||New Years|
|Thursday, January 6, 2022||Children's Day||Banks and Government only|
|Monday, February 28, 2022||Carnival||Not official day off but many employers give vacation|
|Tuesday, March 1, 2022||Carnival|
|Thursday, April 14, 2022||Maundy Thursday||Tourism Week - vary every year|
|Friday, April 15, 2022||Good Friday||Tourism Week - vary every year|
|Sunday, May 1, 2022||Labor Day|
|Wednesday, May 18, 2022||Battle of Las Piedras||Banks and Government only|
|Sunday, June 19, 2022||Birth of Artigas|
|Monday, July 18, 2022||Constitution Day||Marks the promulgation of the First Constitution of Uruguay in 1830|
|Thursday, September 8, 2022||Independence Day||Independence from the Empire of Brazil in 1825|
|Tuesday, October 11, 2022||Columbus Day|
|Wednesday, November 2, 2022||All Saints Day|
|Sunday, December 25, 2022||Christmas|
The minimum wage is fixed at 17,930 Uruguayan Pesos ($408.27) 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.
Remote can help you provide a competitive and compliant benefits package for your employees in Uruguay. If you have questions or would like to offer a custom benefit, let us know and we can help.
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, viz: 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: