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* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.
Uruguay ranks 5th out of 137 countries in the BTI Transformation Index, leading Latin America in social and economic progress.
As a Mercosur member, it enjoys strategic trade access across South America.
Establishing a company in Uruguay is efficient, with no mandatory minimum capital requirement for most sectors.
In 2021, Uruguay ranked 19th globally for political stability and 21st for transparency, reflecting its strong democratic values and low corruption levels in the region.
In Uruguay, written employment contracts aren't legally required. However, it's common to use them, with fixed-term contracts typically lasting up to one year. Though not obligatory, it's recommended to provide a written record detailing basic employment details, including:
In Uruguay, the standard probation period is generally limited to three months.
In Uruguay, the standard working hours amount to 44 per week, distributed over 8 hours each day. However, individuals in the industrial sector may be required to work 48 hours, with an 8-hour daily schedule, spread across a six-day week.
In Uruguay, employees in both agricultural and non-agricultural sectors are entitled to a minimum rest period of 36 hours per week. Overtime worked on a regular working day must be compensated at 200% of the hourly wage. For overtime on public holidays or non-working days, the compensation increases to 250% of the hourly wage.
As of 2024, the minimum monthly wage in Uruguay is 26,000 UYU translating to an approximate hourly rate of 136.42 UYU based on a standard 44-hour workweek. This wage applies to most non-agricultural workers and is subject to periodic adjustments. Agricultural workers have a lower minimum wage, around 15,670 UYU .
Employees in Uruguay receive a 13th-month salary (known as Aguinaldo) which are distributed in two halves: one in June and the other in December.
Income tax in Uruguay follows a progressive rate structure. The overall rates can be influenced by additional factors such as household status and the number of children.
Uruguay adopts a mixed pension system, consisting of the solidarity regime provided by the Social Security Bank and the individual savings regime managed by the Administrators of Social Security Savings Fund (AFAP). Eligibility for pension benefits typically starts at the age of 63-65 for employees.
The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Uruguay tailored to your needs.
In Uruguay, employers cannot terminate employment at will outside of the probation period; terminations must be based on just cause. Compliant terminations include:
In Uruguay, the standard notice period is typically 1.5 weeks for both employees and employers.
Terminated employees in Uruguay are entitled to severance pay at the rate of one month's salary for each year of service, capped at a maximum of six months.
Uruguay observes 15 holidays in a calendar year, with some (*) included in mandatory paid leave and eligible for holiday pay at double the salary.
The employer contributes to the Social Security System, maintaining the following benefits:
At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.
It's important to note, visa support can be complicated and each country has different requirements and legislation. As of August 2024, non-Singapore entities that want to employ an individual in Singapore who is not a Singapore national or permanent resident may no longer use an Employer of Record (EOR) to sponsor that individual for a work permit. Contact our experts for help on how to navigate global employment in Singapore.
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