* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City

Uruguayan Peso ($U)


UYT (GMT -3)

Employment Cost


Annual Leave

20 days

In-demand Specialties*
Agriculture, Energy, Software

The Ultimate Guide to Hiring Employees in Uruguay

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.


Key Considerations Before Hiring In Uruguay

Employing in Uruguay requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in Uruguay with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in Uruguay quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

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.


Fundamental Aspects of Employment in Uruguay

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:

  • Identification of both parties
  • Basic wage
  • Workplace and working hours
  • Probation period
  • Benefits
  • Termination terms
  • Reference to other collective agreements

Probationary Period in Uruguay

In Uruguay, the standard probation period is generally limited to three months.

Working hours in Uruguay

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.

Overtime in Uruguay

Overtime in Uruguay is work exceeding the standard 44 hours per week as per the contract or collective agreements, is limited to 8 hours weekly. Overtime is paid at 200.00% of the standard salary, while work on non-working days is compensated at 250.00% of the regular wage.

Navigating Key Aspects of Payroll in Uruguay

Uruguay has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

1 January - 31 December

Fiscal Year in Uruguay

1 January - 31 December is the 12-month accounting period that businesses in Uruguay use for financial and tax reporting purposes.

Payroll Cycle in Uruguay

The payroll cycle in Uruguay is usually monthly, with employees being paid by the 5th day of the following month.
119.926 UYU p/h

Minimum Wage in Uruguay

The minimum wage for employees in Uruguay is typically 119.926 UYU per hour, amounting to ~21,107 UYU per month for a typical 44 hour work week.

Minimum wages and salaries in Uruguay

In Uruguay, the monthly minimum wage stands at 21,107 UYU.

Bonus Payments in Uruguay

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.

Comprehensive Overview of Employment Taxes in Uruguay

Understanding the tax obligations for both employers and employees is crucial when operating in Uruguay's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Uruguay.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 12.63% on top of the employee salary in Uruguay.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In Uruguay, the typical estimation for employee payroll contributions cost is around 18.10% – 23.1%.

Tax Rate Tax Type

Individual Payroll Tax Contributions

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.

Tax Rate Income Bracket

Pension in Uruguay

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.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in Uruguay

When it comes to terminating employment in Uruguay, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

In Uruguay, employers cannot terminate employment at will outside of the probation period; terminations must be based on just cause. Compliant terminations include:

  • Voluntary employee resignation
  • Mutual agreement
  • Unilateral decision by the employer (based on probation period, objective reasons, disciplinary dismissal, unsuitability for the job)
  • Contract expiration

Notice Period

In Uruguay, the standard notice period is typically 1.5 weeks for both employees and employers.

Severance Pay

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.

Annual Leave Entitlements and Company Policies in Uruguay

The annual leave entitlement in Uruguay is 20 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in Uruguay

Uruguay observes 15 holidays in a calendar year, with some (*) included in mandatory paid leave and eligible for holiday pay at double the salary.

Holiday Date

Paid Time Off in Uruguay

Maternity Leave in Uruguay

Paternity Leave in Uruguay

Sick Leave in Uruguay

Parental Leave In Uruguay

Uruguay's Benefits Built Into Playroll

Competitive benefits package in Uruguay

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in Uruguay's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In Uruguay

Make your benefits package in Uruguay a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

Statutory benefits for employment in Uruguay

The employer contributes to the Social Security System, maintaining the following benefits:

  • Health Insurance
  • Labour Reconversion Fund
  • Labour Credit Guarantee Fund
  • Retirement

Playroll allows you to provide localized benefits for employees in Uruguay within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in Uruguay create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for Uruguay

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. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in Uruguay.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

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