Uruguay
Hire Employees & Contractors

Uruguay

Compliantly hire your distributed team members in

Uruguay

Person working on laptop

Hiring in

Uruguay

isn't so simple. Borderless can help.

To hire new employees in

Uruguay

, your business must have a local legal entity or an Employer of Record like Borderless in place already. Then there’s the management of local employment compliance, taxes, benefits, payroll, and more. Hiring contractors poses similar challenges.

Borderless handles all of that for you, so you can focus on getting to work with your new team member in

Uruguay

while staying fully compliant with local laws and compliance.

Primary Language

Spanish

Currency

Uruguayan Peso ($U)

Payroll Frequency

Monthly

Public Holidays

5 days

Employer Taxes

12.50%

Cost of Living Index

$$$ (37 of 140, 2023)

Statutory Leave

15 days

Sick Leave

Employer covers the first 2 days

Maternity Leave

14 weeks

Important: Risks of misclassification

In many countries like

Uruguay

, the treatment of employees and contractors is different. If you misclassify a new team member, you could be subjected to penalties and fines. Let Borderless get this right for you, so you don’t have to worry.

Payment Information

Minimum Wage

The minimum wage in Uruguay is $U 21,107.

Overtime Pay

The standard work week is Monday to Friday, 44 to 48 hours per week. 

When working overtime, employees can choose to work fewer hours on another day. Otherwise, they must be compensated for overtime - 100% for weekdays and 150% for weekends and holidays. 

At most, employees in Uruguay can perform 8 hours of overtime per week.

Additional Pay

Uruguay mandates a thirteenth-month salary, paid in two installments over the year. 

Payroll Cycle

For all Borderless customers, employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.

Employer Costs & Taxes

  • 7.5%: Retirement Fund 
  • 5%: Health Insurance 
  • 0.1%: Labor Restructuring Fund

Employee Costs & Taxes

  • 15%: Retirement Fund
  • 3-8%: Health Insurance 
  • 0.1%: Labor Restructuring Fund

Income Tax

  • No tax on the first $U 433,776
  • 10%: 433,776 to 619,680
  • 15%: 619,680 to 929,520
  • 24%: 929,520 to 1,859,040
  • 25%: 1,859,040 to 3,098,400
  • 27%: 3,098,400 to 4,647,600
  • 31%: 4,647,600 to 7,126,320
  • 36%: Over 7,126,320

Employment Information

Termination Process

Employers can only terminate staff with just cause. Otherwise, they will be required to pay a severance package. 

Notice period

Uruguayan law does not stipulate a notice period. That said, 15 days are customary. 

Probation Period

Probation periods in Uruguay last from 45 to 90 days depending on the type and length of the contract. 

Severance Details

Severance pay in Uruguay depends on the employee’s length of service. Employers must pay one month of salary for each year of employment, up to six months of salary in total. 

Benefits of working in a country abroad

Borderless Benefits Packages in

Uruguay

When the world is your competition, it pays to incentivize new hires and existing alike. Borderless benefits packages typically include:

Medical Insurance
Dental Insurance
Vision Insurance
Life Insurance
Retirement Contributions

Learn how to hire quickly and easily in

Uruguay

Book your demo of Borderless to help you hire, pay, and take care of new employees and contractors in 170+ countries.

Book a demo