Uruguayan Peso (UYU)
Onboard, pay and manage employees in Uruguay with Deel.
Usually, to hire in Uruguay, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.
Deel lets you hire employees in Uruguay quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more. For your existing direct employees, we can manage your entire payroll operation from end-to-end.
All the necessary benefits for Uruguay
built right in
Deel allows you to provide localized benefits for employees in Uruguay within minutes. All in one manageable online dashboard.
- Workers Compensation Insurance
- Private Healthcare - Unisure (optional)
- Private Healthcare - Allianz (optional)
Our quickstart guide to hiring in Uruguay
Navigate the tabs below to learn everything you need to know about hiring an employee in Uruguay
Minimum Wage Requirements
The minimum wage in Uruguay is complex. The minimum wage varies depending on the sector of the employee. For Deel software activities applies, the minimum wage is UYU 36,180 per month.
For more information please see here
Individual Income Tax
The individual income tax ranges from 0% to 36%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the household status and the number of children.
|Gross Annual Income||Tax Rate (%)|
|Up to UYU 39.620||0%|
|From UYU 39.620 up to 56.600||10%|
|From UYU 56.600 up to 84.900||15%|
|From UYU 84.900 up to 169.800||24%|
|From UYU 169.800 up to 283.000||25%|
|From UYU 283.000 up to 424.500||27%|
|From UYU 424.500 up to 650.900||31%|
|Starting from UYU 650.900||36%|
The employer cost is generally estimated at 15.85% of the employee salary:
- Social Security (BPS) - 7.5%*
- Health Insurance (FONASA) - 5%
- Additional Fund (FRL) - 0.1%
- Guarantee Fund (FGL) - 0.025%
- Accident Insurance - 3.23%
*up to a maximum salary of UYU 236,309.
- 13th Month Salary - 1 month basic salary
- 14th Month Salary (Vacation Bonus) - One day's net compensation earned in the previous year for each day of time off taken
Overtime Pay & Maximum Hours
Employees are entitled to 13 days of paid paternity leave. The employee will receive 100% of their average salary from the last 6 months. The first 3 days will be covered in full by the employer. From the 4th day until the 13th day, it will be covered by the National Health Insurance (BPS). The leave must be taken from the day the baby is born.
Employees are entitled to work 50% of the week for the first six months after birth. Either parent can take parental leave. Social security will pay 100% of the average salary during this period. Parental leave can't be extended.
Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.
Terminations in Uruguay can be complex. There is no at-will termination in Uruguay for employers outside the probation period and termination must be done for just cause.
Compliant terminations include:
- Voluntarily by the employee
- By mutual agreement
- Unilaterally by the employer based on:
- Probation period
- Objective grounds
- Disciplinary dismissal
- Performance due to unsuitability for the job
- By the expiration of the contract
Severance for Employees
In Uruguay, all employees who are not terminated due to disciplinary breach during the probation period, or a fixed-term contract ending, are entitled to severance pay. Severance pay is one month of salary per year of service up to 6 months base compensation.
To protect you from unforeseen financial risks arising from terminations, Deel applies a Severance Accrual to all employment agreements in this country. Deel has extensive expertise in managing litigation risk globally and our Severance Accrual calculation is based on the prevailing common-law or statutory entitlements and local best practices. In the event your employee resigns or is not entitled to severance, all unused amounts will be returned to you.
Paid Time Off
Public Holidays in Uruguay are complex. Uruguay celebrates both 15 national holidays. Only 5 of these holidays are mandatory paid non-working days.
National public holidays include:
- New Years Day (non-working)
- Carnival 2
- Maundy Thursday
- Good Friday
- Landing of the Patriots
- Labour Day (non-working)
- Battle of Las Piedras Holiday
- Birth of Artigas
- Constitution Day (non-working)
- Independence Day (non-working)
- Day of the Race
- All Souls' Day
- Christmas Day (non-working)
Employment Contract Details
Contracts must be in Spanish and can be bilingual. They must be in writing and signed by both parties.
A contract must include:
- Start date
- Length of the employment
- Job description
- Termination conditions
Hiring in Uruguay, hassle-free
With Deel, your business can easily hire employees in Uruguay with our EOR solution. If you have an entity, our Global Payroll solution takes care of payroll and compliance for your direct employees. Our 250+ in-house experts handle everything from managing local laws, complex tax systems, or your payroll in Uruguay and 150+ countries.
Estimate Employer Cost
*of employee salary