Talent Wiki - Uruguay
Your quick guide on talent and labor compliance norms in Uruguay
Capital
Montevideo
Currency
Uruguayan peso
Languages
Spanish, Portuñol.
Payroll Frequency
Monthly
GDP per Capita
$20,018
Employer Tax
12.625%
Talent Overview
The Latin American country of Uruguay is a developing, high-income economy. The nation ranks at the prime spot in terms of democracy, low corruption, peace, e-governance, Human Development Index, GDP growth, innovation, and press freedom among the rest of the countries in the continent. Agriculture and textiles are the major exporting industries in Uruguay with the service sector employing more than 70% of the labor force. Due to the political, institutional and social factors, the country is considered an excellent spot for new and innovative business.
Major economic hubs:
Montevideo
Skills in demand:
Finance Manager, Financial analyst, Hardware engineer, Project manager, advisor.
Local Universities
Universidad de la República
RANKING
Local: 1
World : 1347
Universidad ORT Uruguay
RANKING
Local: 2
World : 2234
Universidad Católica del Uruguay
RANKING
Local: 3
World : 2361
Universidad de Montevideo
RANKING
Local: 4
World : 3482
Universidad de la Empresa
RANKING
Local: 5
World : 7368
Salary Data
Some of the popular jobs and their average annual salaries are listed below:
| Job Title | Average Salary (in UYU) | Average Salary (in USD) |
| Software Engineer | 1,413,699.42 | 32,838 |
| Data Scientist | 1,334,945.18 | 31,007 |
| Sales Manager | 1,251,193.54 | 29,062 |
| Project Manager | 920,076.29 | 21,371 |
| Web developer | 1,243,653.29 | 29,750 |
| Data analyst | 1,029,744.92 | 24,633 |
Talent Sourcing Tips
Top Local Job Boards:
Number of LinkedIn users:
1,061,000
Top Recruitment Agencies:
Employing in Uruguay
International labor laws and Uruguayan labor laws are the cornerstones of employment rules and regulations in Uruguay. Know more about Uruguay’s employment policies, taxation, and much more.
Employee Contract
A written agreement is not mandatory, but many follow it to formalize the employment process. No specific language is compulsorily followed for these contracts. It may be in the official language, or a language understood by both parties.
Probation Period
The probationary period for employees in Uruguay is one month.
Public and Provincial Holidays 2023
| Date | Holiday | Type |
| 1 Jan | New Year’s Day | National Holiday |
| 6 Jan | Epiphany | National Holiday |
| 20 Feb | Carnival | National Holiday |
| 21 Feb | Carnival | National Holiday |
| 6 Apr | Maundy Thursday | National Holiday |
| 7 Apr | Good Friday | National Holiday |
| 17 Apr | Landing of the Patriots | National Holiday |
| 1 May | Labour Day | National Holiday |
| 22 May | Battle of Las Piedras Holiday | National Holiday |
| 19 Jun | Birth of Artigas | National Holiday |
| 18 Jul | Constitution Day | National Holiday |
| 25 Aug | Independence Day | National Holiday |
| 16/10/2023 | Day of the Race | National Holiday |
| 2 Nov | All Souls’ Day | National Holiday |
| 25 Dec | Christmas Day | National Holiday |
Employee Leaves
| Type of Leave | Time Period | Mandatory |
| Annual Leave | 20 days | Yes |
| Sick Leave | 3 days | Yes |
| Maternity Leave | 14 weeks | Yes |
Payroll
Payroll Cycle
The payroll cycle followed in Uruguay is monthly. The employers pay the salary of their employees by the 5th of the following month.
Minimum Wage
The national minimum wage is 21,106 Uruguayan peso per month, ie. US $532.29.
Overtime Pay
Work done beyond the normal working period of 44 hours is compensated per the mutually accepted employment contract. The maximum limit of overtime per week is set at 8 hours. The usual pay for working overtime on work days is 200% of the standard salary rate and for working on holiday, the pay is 250% of the standard rate.
Bonus
13th Month Pay:
Uruguay entitles its employees a 13th-month pay, which is distributed in two parts: one in June and another in December.
Employee Benefits:
- Health Insurance
- Labor re-conversion
- Pension fund
- Labor credit guarantee
- 13th-month salary
- Maternity leave
- Paternity leave
- Annual paid leaves
Taxes
Employer Payroll Tax
Employers have to make the following contributions on the gross monthly salary of every employee they maintain.
| Contributed to | Employer payroll tax |
| Health Insurance | 5% |
| Labor Re-conversion Fund | 0.1% |
| Pension Fund | 7.5% |
| Labor Credit Guarantee Fund | 0.025% |
Employee Payroll Tax
Every employee is entitled to a salary each month, from which the following contributions are made.
| Contributed to | Employee Payroll Tax |
| Pension Fund | 15% |
| Health Insurance | 3% to 8% |
| Labor Re-conversion Fund | 0.1% |
Employee Income Tax
Uruguay levies income tax on both resident and non-resident individuals. Income tax on resident individuals is as follows:
| Annual Taxable Income (UYU) | Tax Rate | |
| 0 – 433,776 | 0% | |
| 433,776 – 619,680 | 10% | |
| 619,68 – 929,520 | 15% | |
| 929,520 – 1,859,040 | 24% | |
| 1,859,040 – 3,098,400 | 25% | |
| 3,098,400 – 4,647,600 | 27% | |
| 4,647,600 – 7,126,320 | 31% | |
| More than 7,126,320 | 36% | |
Income tax on a family unit if each member earns more than 12 minimal salaries (1 minimal salary is 22,245 UYU):
| Annual Taxable Income (UYU) | Tax Rate | |
| 0 – 867,552 | 0% | |
| 867,552 – 929,520 | 15% | |
| 929,520 – 1,859,040 | 24% | |
| 1,859,040 – 3,098,400 | 25% | |
| 3,098,400 – 4,647,600 | 27% | |
| 4,647,600 – 7,126,320 | 31% | |
| More than 7,126,320 | 36% | |
Income tax on a family unit if one member earns less than 12 minimal salaries:
| Annual Income Range | Tax Rate |
| 0 – 495,744 | 0% |
| 495,744 – 743,616 | 10% |
| 743,616 – 929,520 | 15% |
| 929,520 – 1,859,040 | 24% |
| 1,859,040 – 3,098,400 | 25% |
| 3,098,400 – 4,647,600 | 27% |
| 4,647,600 – 7,126,320 | 31% |
| More than 7,126,320 | 36% |
Income tax on non-resident individuals ranges from 7%-25% and is collected by withholding. To know in detail, click here.
VAT
The standard VAT rate in Uruguay is 22%.
Offboarding & Termination
Based on the employment agreement, the termination requires a notice and explanation in writing.
Be it for the employee or the employer, the notice period is one and a half weeks.
It depends on the length of employment. A month’s salary has to be paid as severance pay for every year worked, not exceeding six months’ pay.
Visa and Immigration
Employees from outside Uruguay need a work visa, which will be valid for 30 days.
To stay and work in Uruguay beyond the initial 30 days, employees will need a residency visa.
