Find your employer of record in Uruguay

Uruguay famous place - EOR World Wide
Uruguay - EOR World Wide

Uruguay

currency

Uruguayan Peso (UYU)

Currency

Payroll_Frequency

monthly

Payroll Frequency

Employer_Tax

0 to 12.9

Employer Tax

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Overview

Capital

Currency

Date Format

Fiscal Year

Reviews

Montevideo

Uruguayan Peso (UYU)

DD/MM/YY

January 1st-December 31st

0 / 5 Star (0 Reviews)

Uruguay famous place - EOR World Wide

Find your employer of record in Uruguay

Uruguay

currency

Uruguayan Peso (UYU)

Currency

Payroll_Frequency

monthly

Payroll Frequency

Employer_Tax

0 to 12.9

Employer Tax

Overview

Capital

Currency

Date Format

Fiscal Year

Reviews

Montevideo

Uruguayan Peso (UYU)

DD/MM/YY

January 1st-December 31st

0 / 5 Star (0 Reviews)

0

With 2 clicks, start your journey to Hire a contractor or remote employees in Uruguay without a entity set up.

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Overview

Uruguayan Peso (UYU)

CURRENCY

Montevideo

CAPITAL

monthly

PAYROLL FRECUENCY

12

PUBLIC HOLIDAYS

0 to 12.9

EMPLOYER TAXES

13TH / 14TH SALARY

The 13th Salary in this region is usual and typically given at the end of the year.

Employee and employeer taxation in Uruguay

0% - 5%

Health Insurance

0% - 0.1%

Labor Re-Conversion Fund

0% - 7.5%

Pension Fund

0% - 0.3%

Labor Credit Guarantee Fund



0% - 12.9%

Total Employment Cost

Employee

Company Payroll Contributions

15%- 15%

Pension Fund

3%- 8%

Health Insurance

0.1%- 0.1%

Labor Re-Conversion Fund


18.1% - 23.1%

Total Employee Cost



Employee Income Tax in Uruguay

The following income tax rates apply to resident Uruguayan employees:


  • 0.00%: 0 to 409,080 UYU
  • 10.00%: 409,080 UYU to 584,400 UYU
  • 15.00%: 584,400 UYU to 876,600 UYU
  • 24.00%: 876,600 UYU to 1,753,200 UYU
  • 25.00%: 1,753,200 UYU to 2,922,000 UYU
  • 27.00%: 2,922,000 UYU to 4,383,000 UYU
  • 31.00%: 4,383,000 UYU to 6,720,600 UYU
  • 36.00%: 6,720,600 UYU and above

You can also pay this tax as a family. The range of rates that will be used is determined by how much money each member of the family group makes. The next scale of rates is then used in accordance with the various income groups if any member of the group earns over than 12 minimum salaries (one minimum salary equals 17,930 UYU).


  • 0.00%: 0 to 818,160 UYU
  • 15.00%: 818,160 UYU to 876,600 UYU
  • 24.00%: 876,600 UYU to 1,753,200 UYU
  • 25.00%: 1,753,200 UYU to 2,922,000 UYU
  • 27.00%: 2,922,000 UYU to 4,383,000 UYU
  • 31.00%: 4,383,000 UYU to 6,720,600 UYU
  • 36.00%: 6,720,600 UYU and above

If one of the individuals earns less than the minimum wage, taxable income before adjustments must be put together, and the following rate scale is used according to the various income brackets.


  • 0.00%: 0 to 467,520 UYU
  • 10.00%: 467,520 UYU to 701,280 UYU
  • 15.00%: 701,280 UYU to 876,600 UYU
  • 24.00%: 876,600 UYU to 1,753,200 UYU
  • 25.00%: 1,753,200 UYU to 2,922,000 UYU
  • 27.00%: 2,922,000 UYU to 4,383,000 UYU
  • 31.00%: 4,383,000 UYU to 6,720,600 UYU
  • 36.00%: 6,720,600 UYU and above

Uruguay famous place - EOR World Wide
Uruguay famous place - EOR World Wide
Minimum Wage in Uruguay
General

The monthly basic income in Uruguay is 423 USD, or approximately 18,067 UYU. Payroll outsourcing in Uruguay is a great way of providing payments to the employees.

$423 Minimum Wage per month

Uruguay famous place - EOR World Wide

Payroll Contributions in Uruguay

Payroll Cycle

Employers must pay their employees on the fifth day of the next month in Uruguay, where the payroll cycle is typically monthly. Companies hire Professional Employer Organization and their payroll outsourcing services to comply with employment laws in Uruguay. 

13th Salary

Aguinaldo, the 13th-month salary payment that is due to employees from Uruguay. It splits into two equal payments: one in June and the other in December.

Employee Benefit in Uruguay

Visa and work permit in Uruguay

Foreign nationals can obtain a variety of visas from Uruguay, including:


  • Tourism visa.
  • Business visa.
  • Student visa.
  • Family reunification visa.
  • Work visa.
  • Emergency and humanitarian visas.


The foreign visitor enters Uruguay as a tourist before applying in person for residency at the national immigration office of Uruguay, Dirección Nacional de Migración (DNM). The required paperwork consists of:


  • Birth certificate.
  • Marriage certificate.
  • A police clearance for any nation the person has been living in the previous five years. You require an FBI report rather than a police report if you are a citizen of the United States.
  • Income documentation is necessary.


A document necessary to obtain the Uruguayan residency ID card must be issued by the Registro de Extranjeros, who must also register the legalized translated birth certificate.


In addition to these documents, a carnet de Salud (Uruguay health card) and a medios de vida are necessary (an income certificate). Both the income certification and the health card require a medical examination at an approved Uruguayan facility. An escribano, a Uruguayan legal expert able to create an income verification certificate, must certify the origin and volume of your income. (Any foreign source of income, including a retirement, social security, rent, or business revenue, is eligible.)


Companies can provide their foreign workers with visas and residencies with the support of PEO services in Uruguay.

VAT in Uruguay

In Uruguay, the normal VAT rate is 22.00%. Hire Employer of Record in Uruguay to keep compliant with tax laws.

Working Hours in Uruguay
General

In Uruguay, a typical workweek consists of 44 hours, or eight hours every day. Industrial sector workers can be expected to put in 48 hours of work, eight hours per day, over the course of a six-day workweek. With Employer of Record services in Uruguay businesses can honor the proper working hours in the region.

Overtime

The employment contract and collective agreements govern all labor that happens in excess of the statutory 44 hours per week as overtime. Typically, the weekly maximum for overtime is 8 hours, and the rate is paid at 200.00% of the hourly rate. The rate of pay for overtime worked on a day off, such as a holiday, is 250.00% of the employee's regular salary.

Working Week

From Monday to Friday/Monday to Saturday.

Employee Termination in Uruguay
Termination Process

A fixed-term contract may be terminated by the employer for any of the following reasons: business, personal, or employee misconduct. It necessitates notice and a justification for the termination in writing. When an employee is fired for misbehavior, they must first receive a warning and an opportunity to defend their actions. A severance payout and a notice of dismissal must be given to every dismissed employee.

Notice Period

In Uruguay, the standard notice time is 1.5 weeks for both the employee and the employer.

Severance Pay

A dismissed employee has the right to severance pay at a rate of one month's salary for each year of employment, up to a maximum of six months.

Probation Period

In Uruguay, the probationary period might last up to three months.

Employee Leaves in Uruguay
Paid Time Offs

When an individual works for at least a year in Uruguay, they are typically entitled to 20 working days of yearly leave. For every 4 years of service, the entitlement may rise by one day, up to a total of 25 days. PEO services in Uruguay and Contractor Management Services help businesses to track and comply with time off.

Uruguay famous place - find your EOR
Public Holidays

There are 12 national holidays throughout the year.

Vacation Holidays

There are 20 vacation holidays throughout the year.

Sick Days

An employee has the right to up to one year of paid sick time, the first three days of which are paid at 100% of the employee's regular income. After that, the Banco de Previsión Social (BPS), Uruguay's social security system, will pay the employee 70% of their average annual salary.


Every illness that qualifies for sick leave must be supported by a medical certificate.

Paternity Leave

Parents and fathers have a right to 13 days of paternity leave with pay. With an Employer of Record in Uruguay firms can provide this benefit to their employees.

Paternal Leave

There are no parental leave provisions in the law.

Other Leave

In Uruguay, there are no further statutory leave requirements.

Maternity Leave in Uruguay

Employees who are female are eligible for a 14-week maternity leave, that is available six weeks prior to the deadline and eight weeks following the birth. The employee will receive compensation from Banco de Previsión Social, Uruguay's social security system (BPS).

There are 98 leave throughout the year.

Uruguay famous place - find your EOR

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