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Public Holidays Calendar

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Uruguay 2022
Day Date Holiday Notes
Saturday Jan-1 New Year's Day
Monday Feb-28 Shrove Monday
Tuesday Mar-1 Shrove Tuesday
Thursday Apr-14 Maundy Thursday
Friday Apr-15 Good Friday
Monday Apr-18 Landing of the 33 Patriots Day
Sunday May-1 International Workers' Day
Sunday Jun-19 Birth of Artigas and Never Again Day
Monday Jul-18 Constitution Day
Thursday Aug-25 Independence day
Monday Oct-10 Day of the Race
Wednesday Nov-2 All Souls Day
Sunday Dec-25 Christmas Day and Family Day
Countrypedia

Uruguay
Payroll and Benefits Guide

Last updated: Oct 04, 2021
Currency
Uruguayan Peso (UYU)
Payroll Frequency
Monthly
Employer Taxes
12.625%

Papaya Offers Complete Payroll, PEO and Contractor Management Services For Uruguay

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Overview

Capital
Montevideo
Currency
Uruguayan Peso (UYU)
Date Format
dd/mm/yyyy
Fiscal Year
1 January- 31 December
Public holidays calendar

Contributions

Employer

Employer Payroll Contributions

5%

Health Insurance

0.1%

Labor Re-conversion Fund

7.5%

Pension Fund

0.025%

Labour 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

The income tax rates applicable to resident employees are the following (as of 31 December 2021):
0.00%

0-409,080 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

Employee Income Tax

This tax can also be paid as a family unit. The scale of rates to be applied depends on the income of each of the family group's members. If each of the members earns more than 12 minimal salaries (one minimal salary is 17,930 UYU), taxable income before deductions must be added together and then the following scale of rates is applied according to the different income brackets (as of 31 December 2021):
0.00%

up 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

Employee Income Tax

If one of the members earns less than 12 minimal salaries, taxable income before deductions must be added together and then the following scale of rates is applied according to the different income brackets (as of 31 December 2021):
0.00%

up 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

Minimum Wage

General

In Uruguay, the monthly minimum wage is 423 USD, approximately 18,067 UYU.

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 employees’ standard earnings.

Working Week

Monday–Friday/Monday-Saturday

Leave

Paid Time Off

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.

Public Holidays

There are 12 public holidays.

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. Following this, the employee will be compensated by Uruguay’s social security system, Banco de Previsión Social (BPS) at 70% of the employees’ 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.

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. 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 legalised 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, a Uruguayan legal professional authorised 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 22.00%.

Version History

January 1, 2021
Minimum wage: rose to 17,930 UYU per month.
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