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.
Montevideo
Finance Manager, Financial analyst, Hardware engineer, Project manager, advisor.
Local: 1
World : 1234
Local: 2
World : 2524
Local: 3
World : 3155
Local: 4
World : 3866
Local: 5
World : 6496
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 | 31,000 | 817 |
| Data Scientist | 54,100 | 1,427 |
| Sales Manager | 60,000 | 1,582 |
| Project Manager | 42,100 | 1,110 |
| Front end developer | 28,600 | 754 |
| Data analyst | 30,600 | 807 |
1,238,000
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.
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.
The probationary period for employees in Uruguay is one month.
| Date | Name | Type |
| 1 Jan | New Year’s Day | National holiday |
| 6 Jan | The Three Wise Men Day | Bank / working holiday |
| 12 Feb | Carnival / Shrove Monday | Bank / working holiday |
| 13 Feb | Carnival / Shrove Tuesday / Pancake Day | Bank / working holiday |
| 28 Mar | Maundy Thursday | Bank / working holiday |
| 29 Mar | Good Friday | Bank / working holiday |
| 19 Apr | Landing of the 33 orientals | Bank / working holiday |
| 22 Apr | Landing of the 33 orientals observed | Bank / working holiday |
| 1 May | Labor Day / May Day | National holiday |
| 18 May | Battle of Las Piedras | Bank / working holiday |
| 19 Jun | José Artigas’ Birthday Memorial | Bank / working holiday |
| 18 Jul | Constitution Day | National holiday |
| 25 Aug | Independence Day | National holiday |
| 12 Oct | Day of cultural diversity | Bank / working holiday |
| 2 Nov | All Souls’ Day | Bank / working holiday |
| 25 Dec | Christmas Day | National holiday, Christian |
| Type of Leave | Time Period | Mandatory |
| Annual Leave | 20 days | Yes |
| Sick Leave | 3 days | Yes |
| Maternity Leave | 14 weeks | Yes |
The payroll cycle followed in Uruguay is monthly. The employers pay the salary of their employees by the 5th of the following month.
The national minimum wage is 21,106 Uruguayan peso per month, ie. US $532.29.
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.
Uruguay entitles its employees a 13th-month pay, which is distributed in two parts: one in June and another in December.
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% |
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% |
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.
The standard VAT rate in Uruguay is 22%.
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.
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.
