Remote’s guide to employing in

uruguay flag

Make employment in Uruguay easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Uruguay, all in one easy-to-use platform.

  • Capital City


  • Currency

    Uruguayan peso ($U, UYU)

  • Languages


  • Population size


Services available in this country:
Employer of Record ProductContractor ManagementPayroll

Facts & Stats

  • Capital City


  • Currency

    Uruguayan peso ($U, UYU)

  • Languages


  • Population size


  • Ease of doing business


  • Cost of living index

    51.09 (2021)

  • Payroll frequency


  • VAT - standard rate


  • GDP - real growth rate

    0.2% (2019)

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.

Grow your team in Uruguay with Remote

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.

Risks of misclassification

Uruguay, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Uruguay may lead to fines and penalties for the offending company.

Employing in Uruguay

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.

Minimum Wage

The minimum wage is fixed at 19,364 Uruguayan Pesos ($466.27) per month.

Payroll Cycle

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.

Onboarding Time

We can help you get a new employee started in Uruguay fast. The minimum onboarding time we need is only 10 working days.

13th Salary

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:

  1. June: Corresponding to the amount earned from December 1 through May 30.

  2. December (between the 14th and 23rd): Corresponding to the amount earned from June 1 through November 30.

5 Public holidays

Monday, January 1, 20241New Year's Day (Año Nuevo)
Wednesday, May 1, 20242International Workers' Day (Día Internacional de los Trabajadores)
Thursday, July 18, 20243Constitution Day (día de la Constitución)
Sunday, August 25, 20244Declaration of Independence (Declaración de la independencia)
Wednesday, December 25, 20245Christmas Day (Navidad)

Want to see and manage all holidays? Sign up for our free HRIS!

Effortless HR in Uruguay: Take the Tour

Seamlessly Manage Your Workforce, from First Hire to Final Paycheck

Competitive benefits package in Uruguay

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:

  • Health Insurance

  • Dental Insurance

  • Vision Insurance

  • Mental Health Support

  • Pension or 401(K)

  • Life and Disability Insurance

Taxes in Uruguay

Learn how employment taxes and statutory fees 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

Types of leave

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.

Employment termination

Termination process

Employers have the right to terminate employees, provided prior notice is provided, along with a severance package.

Notice period

There is no officially stipulated notice period in Uruguay.

Severance pay

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:

  • Fixed-Term Contracts: When employees work until the end of the term agreed in their labor contract, they won't be entitled to severance compensation. In case they are terminated earlier, salaries until the end of the term agreed must be paid.

  • Indefinite Term Contracts: Employees are entitled to severance payments which includes one months salary for every year employed up to six months of salary.

Fair Pricing in Uruguay

Employer of Record

Hire and pay your global team

Starting at $599/month

for annual plans

Top features

  • Satisfaction guaranteed

  • No deposits or hidden fees

  • Zero onboarding or offboarding fees

  • Compliant equity incentives support including withholding and reporting

  • Built-in security and compliance

  • Fast onboarding (average 2-3 days)

  • Flexible, localized benefits

Contractor Management

Compliantly onboard and pay contractors


per contractor/month

Top features

  • Only pay for contractors you actively work with

  • Work with contractors in 200+ countries

  • Create, edit, and sign tailored, localized contracts

  • Approve contractor invoices with one click or auto-pay

  • Transparent payments with complete visibility


Consolidate your multi-country payroll


per employee/month

Top features

  • Reduce costs by centralizing payroll management

  • Ensure local compliance for every country

  • Direct support from in-house local payroll experts

  • Accurate, on-time, compliant payroll to level-up your employee experience

  • Tax and labor authority reporting handled for you

HR Management

Manage all of your employees in one place


Top features

  • Guided onboarding and offboarding

  • Employee profile and document management

  • Time and attendance (time off and tracking)

  • Expense management and reimbursement

  • Employee self-serve on the platform and mobile app