Hire employees in

Uruguay, hassle-free

Hire employees in Uruguay, hassle-free

With Deel, your business can easily hire employees in Uruguay. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries.

The average onboarding time frame in Uruguay is 3 days with Deel.

Download the Guide

Currency

Uruguayan Peso (UYU)

Capital

Montevideo

Official Language

Spanish

Payroll Cycle

Monthly

Hire employees in Uruguay. No entity needed.

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.

Uruguay also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in Uruguay quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.

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)

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 409,080 0%
Up to UYU 584,400 10%
Up to UYU 876,600 15%
Up to UYU 1,753,200 24%
Up to UYU 2,922,000 25%
Up to UYU 4,383,000 27%
Up to UYU 6,720,600 31%
Over UYU 6,720,600 36%

Employer Cost

The employer cost is generally estimated at 13% of the employee salary.

  • Social Security PBPS - 7.5%
  • Health Insurance (FONASA) - 5%
  • Additional Fund (FRL) - 1%
  • Guarantee Fund (FGL) 0.025%
  • Accident Insurance - 0.745%

Overtime Pay & Maximum Hours

Standard working hours are 8 hours per day, 40 hours per week. The standard workweek is from Monday to Friday.

Maternity Leave

Pregnant employees are entitled to 14 weeks of paid leave. Forty-two days must be taken before the child's birth but can be delayed until two weeks before birth if a medical certificate is presented and if there has been no absence due to medical reasons within the period of pregnancy. The employee will receive 100% of their average salary from the last six months, and Social Security will be responsible for this pay.

Paternity Leave

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.

Parental Leave

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.

Sick Leave

Employees are entitled to unlimited paid sick leave. The first 3 days are unpaid and considered as a qualifying period. After day 3, the leave is paid at 70% by social security.

Termination Requirements

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

Notice Period

Notice period is not mandatory and will depend on what is agreed by both parties in the employment agreement.

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.

Paid Time Off

Both full-time and part-time employees are entitled to 20 working days of paid time off (PTO) a year. PTO accrues monthly at 1.67 days per month.

Public Holidays

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)

Onboarding

Onboarding takes 3 business days

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:

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

Probation Period

Probation periods are not mandatory. The maximum probation period is 90 days.
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Download the complete guide to hiring in Uruguay

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Hiring in Uruguay, hassle-free

With Deel, your business can easily hire employees in Uruguay. No more worrying about local laws, complex tax systems, or managing
international payroll. Deel takes care of everything in 150+ countries.

Group (8)

599 USD

Management fee

Group (9)

13%

Estimate Employer Cost

*of employee salary

Want to learn the cost of hiring an employee in Uruguay?

View our Employee Cost Calculator

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