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Uruguay Employment Guide

Your quick guide on talent and labor compliance norms in Uruguay




Uruguayan peso


Spanish, Portuñol.

Payroll Frequency


GDP per Capita


Employer Tax


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:


Skills in demand:

Finance Manager, Financial analyst, Hardware engineer, Project manager, advisor.

Map 6

Local Universities

The top local universities in Uruguay are as follows:

Uni1 8

Universidad de la República


Local: 1

World : 1234

Uni2 7

Universidad ORT Uruguay


Local: 2

World : 2524

Uni3 7

Universidad Católica del Uruguay


Local: 3

World : 3155

Uni4 6

Universidad de Montevideo


Local: 4

World : 3866

Uni5 4

Universidad de la Empresa


Local: 5

World : 6496

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 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
Talentsource 6

Talent Sourcing Tips

Top Local Job Boards:

Busco jobs, Gallito

Number of LinkedIn users:


Top Recruitment Agencies:

ManpowerGroup Uruguay, Consultora Anamar

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

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

Employee Leaves

Type of Leave Time Period Mandatory
Annual Leave 20 days Yes
Sick Leave 3 days Yes
Maternity Leave 14 weeks Yes


Payroll 1

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.

Payroll 2

Minimum Wage

The national minimum wage is 21,106 Uruguayan peso per month, ie. US $532.29.

Payroll 3

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.


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


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.


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.

Visa 6
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Minimum Wage

Overtime Pay

Visa & Immigration