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Payroll and Benefits Guide Uruguay

Last updated: May 10, 2023

Currency
Uruguayan Peso (UYU)
Employer Taxes
12.625%
Payroll Frequency
Monthly
Employee Costs
23.1%
Capital
Montevideo
Date Format
dd/mm/yyyy
Fiscal Year
1 January- 31 December
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Contribution

Employer Employer Payroll Contributions
5%
Health Insurance
0%
Labor Re-conversion Fund
7.5%
Pension Fund
0.025%
Labor Credit Guarantee Fund
12.625%
Total Employment Cost
Employee Employee Payroll Contributions
15%
Pension Fund
3%-8%
Health Insurance
0.1% Labor Re-conversion Fund
18.10-23.10%
Total Employee Cost
Employee Income Tax
0% 0-433,776 UYU
10% 433,777 UYU to 619,680 UYU
15% 619,681 UYU to 929,520 UYU
24% 929,521 UYU to 1,859,040 UYU
25% 1,859,041 UYU to 3,098,400 UYU
27% 3,098,401 UYU to 4,647,600 UYU
31% 4,647,601 UYU to 7,126,320 UYU
36% 7,126,321 UYU and above

Employer taxes

Highest
Lowest

Employee taxes

Highest
Lowest

Minimum Wage

General

In Uruguay, the monthly minimum wage is 22,268 UYU.

MINIMUM WAGE (PER MONTH)

Highest
Lowest

Payroll

Payroll Cycle

The payroll cycle in Uruguay is generally monthly, and employers must pay employees by the 5th day of the following month.

13th Salary

Employees are entitled to a 13th-month salary payment (Aguinaldo), which is distributed in two halves: one in June and one in December.

Working Hours

General

Standard working hours in Uruguay are 44 hours per week, eight hours per day. Employees in the industrial sector may be required to work 48 hours, eight hours per day over a six-day week.

Overtime

All work above the standard 44 hours a week is overtime and regulated by the employment contract/collective agreements. In general, overtime maximum limits are set at 8 hours per week and paid 200.00% of the standard salary rate. Overtime performed on a non-working day such as a holiday is compensated at 250.00% of the employee’s standard earnings.

Leave

Annual Leave (vacation)

The annual leave entitlement in Uruguay is generally 20 working days following the employee’s completion of at least one year of service. The entitlement may increase by one day for every four years of service up to a maximum of 25 days.

Vacation Pay/Bonus

The amount of the benefit is 100% of the net vacation daily wage, which is the same as the annual leave and/or daily amount after deducting personal contributions.

Public Holidays

Public holidays falling on weekends are usually lost.

Date Day Holiday Note
1 Jan 2024 Monday New Year’s Day National Holiday
6 Jan 2024 Saturday Three Kings’ Day Working holiday
12 Feb 2024 Monday Shrove Monday Working holiday
13 Feb 2024 Tuesday Shrove Tuesday Working holiday
28 Mar 2024 Thursday Tourism Week Working holiday
29 Mar 2024 Friday Maundy Thursday Working holiday
22 Apr 2024 Monday Good Friday Working holiday; moved from 19 Apr
1 May 2024 Wednesday Labor Day National Holiday
18 May 2024 Saturday Battle of Las Piedras Working holiday
19 Jun 2024 Wednesday Birth of Artigas Working holiday
18 Jul 2024 Thursday Constitution Day National Holiday
25 Aug 2024 Sunday Independence Day National Holiday
12 Oct 2024 Saturday Columbus Day Working holiday
2 Nov 2024 Saturday Day of the Dead Working holiday
25 Dec 2024 Wednesday Christmas Day National Holiday

Sick Days

An employee is entitled to up to one year of sick leave, which is compensated at 100% of the employee’s salary for the first three days of sickness covered by the employer. Following this, the employee will be compensated by Uruguay’s social security system, Banco de Previsión Social (BPS) at 70% of the employee’s average earnings.

To qualify for sick leave, all sickness is to be justified with a medical certificate.

Maternity Leave

Female employees are entitled to a maternity leave of 14 weeks, six of which are to be taken before the due date and eight weeks after the birth. The employee will be compensated by Uruguay’s social security system, Banco de Previsión Social (BPS).

Paternity Leave

Fathers/parents are entitled to 13 days of paid paternity leave.

Parental Leave

There are no provisions in the law for parental leave.

Other Leave

There are no additional statutory leave requirements in Uruguay.

Vacation Days
Public Holidays
Highest
Lowest

PAID MATERNITY LEAVE (DAYS)

Highest
Lowest

Termination

Termination Process

Employers can terminate a fix term contract for the following reasons – business, personal, or workers misconduct. It requires notice and a written explanation for the termination. If the reason for termination is misconduct, a warning needs to be given and the employee gets a chance to explain their actions.  All terminated employees must receive a notice of termination as well as a severance payment.

Notice Period

The notice period in Uruguay is typically 1.5 weeks for both the employee and employer.

Severance Pay

Severance pay must be granted to a terminated employee at the rate of one month’s salary for every year of service, up to six months.

Probation Period

The probation period in Uruguay is typically up to 3 months.

VISA

VISA

Uruguay offers a variety of visas to foreign nationals including:

  • Tourism visas, which allow multiple entries and are valid for 90 days
  • Business visas, which are valid for 90 days and multiple entries
  • Student visas, which are single entry and valid for 30 days
  • Family reunification visas, which allow a single entry and are valid for 30 days
  • Work visas, which are valid for 30 days and a single entry
  • Humanitarian and emergency visas, which are single entry and valid for 30 days
  • Foreign employees will need to obtain a work visa to enter Uruguay

To remain in the country beyond the initial 30-day period, a residency visa will be required.

To apply for residency, the foreigner enters Uruguay as a tourist and then applies in person at Uruguay’s national immigration office, Dirección Nacional de Migración (DNM). The required documentation includes:

  • a birth certificate
  • a marriage certificate
  • a police certificate for each country you’ve lived in during the last five years, and if you are a U.S. citizen, you need an FBI report instead of a police report
  • documented proof of income

The birth certificate, marriage certificate, and non-Interpol (non-U.S.) police records must be authenticated by apostille (an official pre-printed form) affixed to the document by the appropriate authority in the appropriate jurisdiction and translated into Spanish by an official public translator.

The legalized translated birth certificate must also be registered with the Registro de Extranjeros, which will issue a document required to obtain the Uruguayan resident ID card.

Besides these documents, there is also a requirement for a carné de Salud (Uruguay health card) and a medios de vida (an income certificate). The health card requires a medical exam at an authorized clinic in Uruguay and the income certification must prove a sufficient income. The source and amount of your income must be verified by an escribano, an Uruguayan legal professional authorized to prepare an income verification certificate. Any source of income from abroad is acceptable, such as a pension, social security, lease income, or business income.

Once the application has been made and documentation provided, the foreigner will become a temporary resident of Uruguay—known as a residente en trámite (a resident in the process). The next step is to go to the immigration department to get the documentation associated with getting the temporary cédula at the Dirección Nacional de Identificación Civil (DNIC). It often takes around a year for the completed residency application to be processed.

VAT

General

The standard rate of VAT in Uruguay is 22%.

Stay up to date on payroll & employment law changes

Version History

January 1, 2021
Minimum wage: rose to 17,930 UYU per month.
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Payroll and Benefits Guide in Uruguay

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Payroll and Benefits Guide
in Uruguay

What’s covered in this guide:

  • Employer/employee contributions
  • Minimum wage
  • Working hours
  • Visa requirements

And more...

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All questions are answered by our in-house compliance department working in conjunction with our local in-country partner for this specific country

Public Holidays Calendar

Uruguay
Download:
CSV
PDF
ICS
Date Day Holiday Note
1 Jan 2024 Monday New Year’s Day National Holiday
6 Jan 2024 Saturday Three Kings’ Day Working holiday
12 Feb 2024 Monday Shrove Monday Working holiday
13 Feb 2024 Tuesday Shrove Tuesday Working holiday
28 Mar 2024 Thursday Tourism Week Working holiday
29 Mar 2024 Friday Maundy Thursday Working holiday
22 Apr 2024 Monday Good Friday Working holiday; moved from 19 Apr
1 May 2024 Wednesday Labor Day National Holiday
18 May 2024 Saturday Battle of Las Piedras Working holiday
19 Jun 2024 Wednesday Birth of Artigas Working holiday
18 Jul 2024 Thursday Constitution Day National Holiday
25 Aug 2024 Sunday Independence Day National Holiday
12 Oct 2024 Saturday Columbus Day Working holiday
2 Nov 2024 Saturday Day of the Dead Working holiday
25 Dec 2024 Wednesday Christmas Day National Holiday