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SALARY PAYMENT IN Uruguayan Peso (UYU, $, U$)
CONTRACT LANGUAGES Spanish / English
PAYROLL TAX 12.625%
PAYROLL CYCLE Monthly
TIME TO HIRE 24 hours
Get Started
Hire and pay talents
with Horizons in
180+ countries
Horizons ensures day-to-day guidance to help your business navigate Uruguay labor laws and regulations. Horizons also ensures Uruguay payroll is processed on time, and that taxes are withheld as required. As the Uruguay Employer of Record, Horizons is responsible for employee income tax withholding, payment of payroll taxes to state authorities, and submission of tax returns to the Uruguay Tax Office. Partnering with our Uruguay PEO is the quickest and most cost-effective way to enter the Uruguay market.
PEO Platform Hire in Uruguay, and pay employees through our platform or app. | PEO Cost Our Uruguay PEO solution is the most affordable on the market. | Time-to-hire Fast onboarding in Uruguay, hire in as little as 24 hours. |
Contracts We draft labor contracts compliant with Uruguay labor law. | Local Benefits We administer all mandatory benefits and contributions in Uruguay. | 185+ Countries It doesn’t stop with Uruguay — we are an international PEO |
When hiring employees in Uruguay, we strongly recommend that you put a written employment contract in place. Contracts should include any relevant details of the employment agreement, be written in Spanish, and use the Uruguayan peso as currency.
Probationary period | 3 months, unless otherwise stated in writing |
Termination notice period | 1 week + the time until the next payday |
Severance | 1 month’s salary per year of service, maximum 6 months’ salary |
Probationary period | 3 months, unless otherwise stated in writing |
Termination notice period | 1 week + the time until the next payday |
Severance | 1 month’s salary per year of service, maximum 6 months’ salary |
The standard working week for employees in Uruguay is 48 hours spread across five days of work.
Quick, compliant hiring in 24 hours—no subsidiary required.
There are several national holidays in Uruguay, for which most employees receive the day off work:
Date | Holiday name |
---|---|
1 Jan Sunday | New Year’s Day |
1 May Monday | Labor Day / May Day |
18 Jul Tuesday | Constitution Day |
25 Aug Friday | Independence Day |
25 Dec Monday | Christmas Day |
Employees in Uruguay are entitled to at least 20 days of paid leave annually.
Employees in Uruguay can receive paid sick leave after the fourth day of absence.
In order for employees to receive the full wages due to them, workers must present a valid medical certificate from a certified doctor to their employer.
Female employees in Uruguay are entitled to 14 weeks of paid maternity leave. Male employees are entitled to 10 days of paid paternity leave.
There is no legally mandated minimum notice period for terminations in Uruguay, but it is good practice to offer one. Severance payments usually equal one month of salary for every year with an employer, up to six months of pay in total.
The income tax system in Uruguay is progressive, with rates of between 0% and 36% depending on income level.
The corporate tax rate in Uruguay is generally 25%.
There is a social healthcare system in Uruguay, but employers also regularly offer private medical insurance as a benefit of employment.
The minimum wage in Uruguay is 16,300 pesos per month for full-time employees.
Building a benefits system for your Uruguayan workforce can be difficult and complicated to navigate if you are not familiar with the country, its customs, and its employment laws. To set it up independently, it can take several weeks and potentially lead to unexpected delays.
At Horizons, we specialize in running the setup and management of Uruguayan employee benefits systems so you don’t have to. We’ll take care of everything, using our knowledge and experience to ensure you are compliant and ready to hire in Uruguay.
With Horizons, you get quick service, transparent pricing, and expert support.
An Uruguay PEO and an Uruguay EOR are two types of companies which specialize in providing human resources services to businesses in Uruguay.
The main difference between an Uruguay PEO and an Uruguay EOR is in the scope of their services.
Uruguay PEOs provide a full range of HR services, including payroll, benefits administration, and employee recruiting—all under one roof as a co-employer. Engaging an Uruguay PEO is essentially outsourcing your HR duties in Uruguay.
Uruguay EORs actually take over as the legal employer of your employees based abroad. Uruguay EORs become responsible for labor compliance for your employees in Uruguay.
At Horizons, we offer both PEO and EOR services in Uruguay. Get in touch now and let us know what service you are seeking.
A PEO in Uruguay can feasibly hire both local and foreign nationals to work in Uruguay.
However, the ability of Horizons to sponsor your foreign national employee in Uruguay may be limited due to visa quotas practiced in many countries.
Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.
In most cases, Horizons’ Uruguay PEO can hire & onboard your employee within 24 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Uruguay.
It is possible to get a work visa in Uruguay. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Uruguay are limited, however—get started today to secure your employees’ visa spot.
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