Hire employees
and contractors in Uruguay

Capital city
Uruguayan Peso (UYU)
Population size
3,518,552 (2019)
Language spoken

Grow your team in Uruguay with Remote

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.

  • Capital city
  • Currency
    Uruguayan Peso (UYU)
  • Language spoken
  • Population size
    3,518,552 (est. 2019)
  • Ease of doing business
    Medium (2020)
  • Cost of living index
    51.09 (2021)
  • Payroll frequency
  • VAT – standard rate
  • GDP - real growth rate
    0.2% (2019)

Facts & stats

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.

Uruguay Map
Uruguay risks illustration

Risks of misclassification

Uruguay, like many other countries, treats self-employed individuals or contractors and full-time workers differently and there are risks associated with misclassification.

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.

Public holidays

Date Holiday Name Extra information
New Year's Day
Children’s Day
Maundy Thursday
Landing of the 33 Patriots Day
Labour Day
Battle of Las Piedras Day
Birthday of José Gervasio Artigas and Never Again Day
Constitution Day
Independence Day
Day of the Races
All Souls’ Day
Family Day

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 instalments on or before the last working day of each calendar month, payable in arrears.

Competitive benefits package in Uruguay

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.

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Taxes in Uruguay

Learn how employment taxes affect your payroll and your employees’ paychecks in Uruguay.

  • Employer

    • 5% - Health Insurance contribution
    • 0.1% - Labor Re-conversion Fund
    • 7.5% - Pension Fund contribution
    • 0.025% - Labour Credit Guarantee Fund
  • Employee

    • 15% - Pension Fund contribution
    • 3 – 8% - Health Insurance contribution
    • 0.1% - Labor Re-conversion Fund
  • Effective Personal Income Tax Rates

    • (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)

Types of leave

time off

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.

  • Marriage leave: A newlywed employee is entitled to five days off, paid by employer
  • Bereavement leave: Employees can take three days off for the death of a close relative
  • Adoption leave: Adoptive parents are entitled to six weeks of continuous leave, with reduced working hours (50% reduction) for the six months following the adoption leave
  • Studies leave: Up to 10 days, the allotment depends on weekly working hours and is always paid by employer


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.

Probation periods

Probation periods are not mandated by Uruguayan labor law, however, some form of probation is commonly accepted and should not exceed three months for permanent contracts. Probation period are not applicable for fixed term contracts.

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