Payroll and Benefits Guide - Uruguay

Uruguay
null

Currency

Uruguayan Peso (UYU)
null

Capital

Montevideo
null

Employer Taxes

12.625%
null

Date Format

dd/mm/yyyy
null

Fiscal Year

1 Jan – 31 Dec

Fun Facts

Uruguay is the second-smallest country in South America

The country is known for its progressive social policies, including legalizing same-sex marriage and marijuana.

Uruguayans are known as “orientales” or “charrúas” in reference to the indigenous people

Malta is known for its crystal-clear waters and beautiful beaches.

The national team has won the FIFA World Cup twice, in 1930 and 1950

The official language of Uruguay is Spanish

Uruguay

Contributions

Employee Payroll Tax

Contribution TypeRate
Pension Fund15%
Health Insurance3% – 8%
Labor Re-conversion Fund0.1%

Employer Payroll Tax

Contribution TypeRate
Health Insurance5%
Labor Re-conversion Fund0%
Pension Fund7.5%
Labour Credit Guarantee Fund0.025%

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.

Work Hours and Week

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.

Monday–Friday/Monday-Saturday

Overtime

All work above the standard 44 hours a week is overtime and regulated by the employment contract/collective agreements.
Uruguay

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.

Public Holidays

There are 15 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 covered by the employer.

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.

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.

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.

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

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.

VAT

The standard rate of VAT in Uruguay is 22.00%.