Country Payroll Guide Uruguay
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Key Facts
- Capital
- Montevideo
- Date format
- dd/mm/yyyy
- Currency
- Uruguayan Peso (UYU)
- VAT
- the standard rate is 22%
Contributions
Employers
- Health Insurance
- Health Insurance - 5%
- Labor Re-conversion
- Labor Re-conversion - 0.1%
- Pension
- Pension - 7.5%
- Labor Credit Guarantee
- Labor Credit Guarantee - 0.02%
- Total Employment Cost
- Total Employment Cost - 12.62%
Employees
- Pension
- Pension - 15%
- Health Insurance
- Health Insurance - 3% to 8%
- Labor Re-conversion
- Labor Re-conversion - 0.1%
- Total Employee Cost
- Total Employee Cost - 18.1% to 23.1%
Minimum Wage
- Minimum Wage
- The minimum wage in Uruguay is 17930 UYU per month.
Payroll
- Payroll Cycle
- Monthly
- 13th Salary
The 13th salary is referred to as ‘Aguinaldo’ and is mandatory by law. This will be paid in two separate instalments in June and December.
Income Tax
- Employee Income Tax (1)
- 0-379,596 UYU - 0%
- Employee Income Tax (2)
- 379,596 - 542,280 UYU - 10%
- Employee Income Tax (3)
- 542,280 - 813,420 UYU - 15%
- Employee Income Tax (4)
- 813,420 - 1,626,840 UYU - 24%
- Employee Income Tax (5)
- 1,626,840 - 2,711,400 UYU - 25%
- Employee Income Tax (6)
- 2,711,400 - 4,067,100 UYU - 27%
- Employee Income Tax (7)
- 4,067,100 - 6,236,220 UYU - 31%
Working Hours
- General Working Hours
44 hours per week.
- Overtime
All overtime will be paid at 2x the normal salary of the employee.
Leave
- Paid Time Off
20 days per year. An additional day is added each year once an employee has been employed for at least five years. This will be capped at 25 days a year.
- Public Holidays
12 public holidays.
- Sick Days
The first 3 sick days taken by the employee will be paid by the employer at 100% of the normal salary. From then on, 70% will be paid by the Institute of Social Security (BPS).
- Maternity Leave
14 weeks (paid by the Institute of Social Security) consisting of 6 weeks before and 8 weeks after birth.
- Paternity Leave
10 days of paternity leave.
Termination
- Termination Process
The correct amount of notice and severance pay must be provided to any employees being dismissed.
- Notice Period
One and a half weeks of notice.
- Severance Pay
The entitlement is one month’s salary for each year the employee has been employed (up to 6 months salary).
- Probation Period
Up to 3 months of a probation period is normal, however it is not required by law.
Visa
- Employment Visa
Foreign employees will need to obtain a work visa to enter Uruguay. To remain in the country beyond the initial 30-day period the visa allows, they will need to get a residency visa as well.