Back Disclaimer

Payroll and Benefits Guide Uruguay

Last updated: Mar 03, 2026

Currency
Uruguayan Peso (UYU)
Employer Taxes
12.625%
Payroll Frequency
Monthly
Employee Costs
23.1%
Capital
Montevideo
Date Format
dd/mm/yyyy
Fiscal Year
1 January- 31 December
video poster

Contribution

Employer Payroll Contributions
5%
Health Insurance, applied on income up to 14,150 UYU per month.
0.1%
Labor Re-conversion Fund
7.5%
Pension Fund, applied on income up to 256,821 UYU per month.
0.025%
Labor Credit Guarantee Fund
12.625%
Total Employment Cost

 

Employee Payroll Contributions
15%
Pension Fund
3%-8%
Health Insurance
0.1% Labor Re-conversion Fund
18.10-23.10%
Total Employee Cost
Employee Income Tax The tax brackets are based on multiples of the “Base de Prestaciones y Contribuciones” (BPC).

2025 BPC = 6,576 UYU per month

0% Income up to 7 BPC
10% Income between 7 – 10 BPC
15% Income between 10 – 15 BPC
24% Income between 15 – 30 BPC
25% Income between 30 – 50 BPC
27% Income between 50 – 75 BPC
31% Income between 75 – 115 BPC
36% Income above 115 BPC
Non-Residents Are generally subject to a withholding tax of 12% applied on Uruguayan-sourced income, except in cases where the income is obtained through operations of a permanent establishment.

 

Employer taxes

Highest
Lowest

Employee taxes

Highest
Lowest

Minimum Wage

General

In Uruguay, the monthly minimum wage is 23,604 UYU.

MINIMUM WAGE (PER MONTH)

Highest
Lowest

Payroll

Payroll Cycle

The payroll cycle is generally monthly, and employers in Uruguay must pay employees by the 5th day of the following month.

13th Salary

Employees are entitled to a 13th-month salary payment (Aguinaldo), which is distributed in two halves: one in June and one in December.

Working Hours

General

Standard working hours in Uruguay are 44 hours per week, eight hours per day. Employees in the industrial sector may be required to work 48 hours, eight hours per day over a six-day week.

Overtime

All work above the standard 44 hours a week is overtime and regulated by the employment contract/collective agreements.

In general, overtime maximum limits are set at 8 hours per week and paid 200.00% of the standard salary rate.

Overtime performed on a non-working day such as a holiday is compensated at 250.00% of the employee’s standard earnings.

Leave

Annual Leave (vacation)

The annual leave entitlement in Uruguay is generally 20 working days following the employee’s completion of at least one year of service.

The entitlement may increase by one day for every four years of service up to a maximum of 25 days.

Vacation Pay/Bonus

The amount of the benefit is 100% of the net vacation daily wage, which is the same as the annual leave and/or daily amount after deducting personal contributions.

Public Holidays

Public holidays falling on weekends are usually lost.

Date Day Holiday Name Holiday Notes
January 1, 2026 Thursday New Year’s Day
January 6, 2026 Tuesday Epiphany / Children’s Day
February 16, 2026 Monday Carnival Monday
February 17, 2026 Tuesday Carnival Tuesday
April 2, 2026 Thursday Maundy Thursday
April 3, 2026 Friday Good Friday
April 19, 2026 Sunday Landing of the 33 Patriots Day
May 1, 2026 Friday Labour Day / International Workers’ Day
May 18, 2026 Monday Battle of Las Piedras Day
June 19, 2026 Friday Birth of Artigas / Artigas’ Birthday
July 18, 2026 Saturday Constitution Day
August 25, 2026 Tuesday Independence Day
October 12, 2026 Monday Day of Cultural Diversity / Day of the Race
November 2, 2026 Monday All Souls’ Day
December 25, 2026 Friday Christmas Day / Family Day

Sick Days

An employee is entitled to up to one year of sick leave, which is compensated at 100% of the employee’s salary for the first three days of sickness covered by the employer.

Following this, the employee will be compensated by Uruguay’s social security system, Banco de Previsión Social (BPS) at 70% of the employee’s average earnings.

To qualify for sick leave, all sickness is to be justified with a medical certificate.

Maternity Leave

Female employees are entitled to a maternity leave of 14 weeks, six of which are to be taken before the due date and eight weeks after the birth.

The employee will be compensated by Uruguay’s social security system, Banco de Previsión Social (BPS).

Paternity Leave

Fathers/parents are entitled to 13 days of paid paternity leave.

Parental Leave

There are no provisions in the law for parental leave.

Other Leave

There are no additional statutory leave requirements in Uruguay.

Vacation Days
Public Holidays
Highest
Lowest

PAID MATERNITY LEAVE (DAYS)

Highest
Lowest

Termination

Termination Process

Employers can terminate a fix term contract for the following reasons – business, personal, or workers misconduct.

It requires notice and a written explanation for the termination. If the reason for termination is misconduct, a warning needs to be given and the employee gets a chance to explain their actions.

All terminated employees must receive a notice of termination as well as a severance payment.

Salary payment interval / date Final payment on termination Bank account/payment-method requirement
Wages are typically paid monthly, and many employer guides indicate payment should be made by the 5th working day of the following month after the month worked. When employment ends (dismissal without just cause) the employer must pay severance: one month’s salary for each year (or fraction) of service, capped at six months’ salary. Payment in Uruguay must be in legal tender (Uruguayan pesos).

Notice Period

There is no legal obligation for a notice period in Uruguay before dismissal.

Severance Pay

Severance pay must be granted to a terminated employee at the rate of one month’s salary for every year of service, up to six months.

Probation Period

The probation period in Uruguay is typically up to 3 months.

Immigration

Uruguay offers a variety of visas to foreign nationals including:

  • Tourism visas, which allow multiple entries and are valid for 90 days
  • Business visas, which are valid for 90 days and multiple entries
  • Student visas, which are single entry and valid for 30 days
  • Family reunification visas, which allow a single entry and are valid for 30 days
  • Work visas, which are valid for 30 days and a single entry
  • Humanitarian and emergency visas, which are single entry and valid for 30 days
  • Foreign employees will need to obtain a work visa to enter Uruguay

To remain in the country beyond the initial 30-day period, a residency visa will be required.

To apply for residency, the foreigner enters Uruguay as a tourist and then applies in person at Uruguay’s national immigration office, Dirección Nacional de Migración (DNM). The required documentation includes:

  • a birth certificate
  • a marriage certificate
  • a police certificate for each country you’ve lived in during the last five years, and if you are a U.S. citizen, you need an FBI report instead of a police report
  • documented proof of income

The birth certificate, marriage certificate, and non-Interpol (non-U.S.) police records must be authenticated by apostille (an official pre-printed form) affixed to the document by the appropriate authority in the appropriate jurisdiction and translated into Spanish by an official public translator.

The legalized translated birth certificate must also be registered with the Registro de Extranjeros, which will issue a document required to obtain the Uruguayan resident ID card.

Besides these documents, there is also a requirement for a carné de Salud (Uruguay health card) and a medios de vida (an income certificate). The health card requires a medical exam at an authorized clinic in Uruguay and the income certification must prove a sufficient income. The source and amount of your income must be verified by an escribano, an Uruguayan legal professional authorized to prepare an income verification certificate. Any source of income from abroad is acceptable, such as a pension, social security, lease income, or business income.

Once the application has been made and documentation provided, the foreigner will become a temporary resident of Uruguay—known as a residente en trámite (a resident in the process). The next step is to go to the immigration department to get the documentation associated with getting the temporary cédula at the Dirección Nacional de Identificación Civil (DNIC). It often takes around a year for the completed residency application to be processed.

VAT

General

The standard rate of VAT in Uruguay is 22%.

Stay up to date on payroll & employment law changes

Version History

January 1, 2021
Minimum wage: rose to 17,930 UYU per month.
More

Questions & Answers

Subscribe
Notify of
guest
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Download this guide to read later

Payroll and Benefits Guide in Uruguay

Download Free Guide

See how Papaya can help you automate your global payroll or EoR whilst staying 100% compliant with local labor laws

While Papaya has made efforts to ensure the accuracy and timeliness of the information provided here, Papaya does not offer any warranties or representations, whether express or implied, regarding its correctness. The information is subject to change without prior notice. Additionally, the content of this publication may be affected by changes in (tax or others) laws in various jurisdictions. None of the information in this publication should be construed as a commercial offer or solicitation, or as a recommendation or any specific transaction. It should not be considered as a substitute for engaging in a legal, tax, financial, investment, or accounting consultancy. Papaya is not responsible for any loss or damage incurred from the use of or reliance on the information provided herein.
Download this guide to read later

Payroll and Benefits Guide
in Uruguay

What’s covered in this guide:

  • Employer/employee contributions
  • Minimum wage
  • Working hours
  • Visa requirements

And more...

Download free guide
exit-popup
All questions are answered by our in-house compliance department working in conjunction with our local in-country partner for this specific country

Public Holidays Calendar

Uruguay
Download:
CSV
PDF
ICS
Date Day Holiday Name Holiday Notes
January 1, 2026 Thursday New Year’s Day
January 6, 2026 Tuesday Epiphany / Children’s Day
February 16, 2026 Monday Carnival Monday
February 17, 2026 Tuesday Carnival Tuesday
April 2, 2026 Thursday Maundy Thursday
April 3, 2026 Friday Good Friday
April 19, 2026 Sunday Landing of the 33 Patriots Day
May 1, 2026 Friday Labour Day / International Workers’ Day
May 18, 2026 Monday Battle of Las Piedras Day
June 19, 2026 Friday Birth of Artigas / Artigas’ Birthday
July 18, 2026 Saturday Constitution Day
August 25, 2026 Tuesday Independence Day
October 12, 2026 Monday Day of Cultural Diversity / Day of the Race
November 2, 2026 Monday All Souls’ Day
December 25, 2026 Friday Christmas Day / Family Day