Hire and pay employees in
Uruguay, hassle-free

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

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.

The employer cost is generally estimated at 15.85% of the employee salary:

Monthly Costs 

• 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 256,821.

Annual Costs 

• 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

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

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.

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:

1. New Years Day (non-working)
2. Epiphany
3. Carnival
4. Carnival 2
5. Maundy Thursday
6. Good Friday
7. Landing of the Patriots
8. Labour Day (non-working)
9. Battle of Las Piedras Holiday
10. Birth of Artigas
11. Constitution Day (non-working)
12. Independence Day (non-working)
13. Day of the Race
14. All Souls' Day
15. Christmas Day (non-working)

Contracts must be in Spanish and can be bilingual. They must be in writing and signed by both parties.

A contract must include:

• Name
• Start date
• Length of the employment
• Job description
• Termination conditions