Country Payroll Guide Uruguay

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Key Facts

Date format
Uruguayan Peso (UYU)
the standard rate is 22%



Health Insurance
Health Insurance - 5%
Labor Re-conversion
Labor Re-conversion - 0.1%
Pension - 7.5%
Labor Credit Guarantee
Labor Credit Guarantee - 0.02%
Total Employment Cost
Total Employment Cost - 12.62%


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 Cycle
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.


All overtime will be paid at 2x the normal salary of the employee.


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 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.


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.