Payroll and Benefits Guide Uruguay
Last updated: Mar 03, 2026
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
Employee taxes
Minimum Wage
General
In Uruguay, the monthly minimum wage is 23,604 UYU.
MINIMUM WAGE (PER MONTH)
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.
PAID MATERNITY LEAVE (DAYS)
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%.
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Payroll and Benefits Guide
in Uruguay
What’s covered in this guide:
- Employer/employee contributions
- Minimum wage
- Working hours
- Visa requirements
And more...
Public Holidays Calendar
| 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 |
Questions & Answers