Local Providers
We can Determine the top Payroll solutions in Uruguay locally for you
Global Providers
Expand your business & relocate employees to Uruguay using top global
PEO / EOR providers
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
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.
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.