Labor Laws in Uruguay
- Annual Leave: 20 days
- Maternity Leave: 12 weeks
- Public Holidays: 12
- Workweek: 44-48 hours per week.
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Capital:
Montevideo
Language:
Spanish
Currency:
Peso Uruguayo
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- 1 Hiring in Uruguay
- 02 Labor Laws in Uruguay
- 15 Uruguay Salary and Wages
- 05 Income Tax in Uruguay
- 06 Social Security in Uruguay
- 08 Immigration Uruguay
- 09 Value Added Tax (VAT) in Uruguay
- 11 Mandatory Benefits in Uruguay
- 11 Payments And Invoicing
- 13 Payroll Accrual in Uruguay
- 14 Accrued Benefits in Uruguay
- 15 Why use Global Expansion to hire in Uruguay
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Income Tax in Uruguay
Uruguay has progressive income tax rates of 0% to 36%.
Value Added Tax (VAT) in Uruguay
The standard VAT rate is 22%.
Social Security in Uruguay
Employer Contributions
- Total Contribution: 12.625% of the employee's salary.
- Retirement: 7.5%
- Health Insurance: 5%
- Labour Restructuring Fund: 0.1%
- Labour Credit Guarantee Fund: 0.025%
Employee Contributions
- Total Contribution: Ranges from 18.1% to 23.1% of the employee's salary, depending on various factors such as marital status and number of dependents
- Retirement: 15%
- Health Insurance:
- 3% for salaries not exceeding 2.5 BPC (Base de Prestaciones y Contribuciones)
- 4.5% for salaries exceeding 2.5 BPC with no dependents
- 5% for salaries not exceeding 2.5 BPC with dependents
- 6% for salaries exceeding 2.5 BPC with dependents
- 6.5% for salaries exceeding 2.5 BPC with a non-working spouse
- 6.5% for salaries exceeding 2.5 BPC with a non-working spouse
- 8% for salaries exceeding 2.5 BPC with a spouse and dependents
- Labour Restructuring Fund: 0.1%
- Labour Credit Guarantee Fund: 0% (no employee contribution)
Work Visas in Uruguay
Here are the main work visas available in Uruguay:
Temporary Work Visa (Visa de Trabajo Temporario)
- Purpose: For foreign nationals entering Uruguay for employment purposes.
- Duration: Typically valid for up to 12 months, with the possibility of renewal.
- Requirements: A job offer or employment contract from a company in Uruguay is required. The employer may also need to provide proof that no suitable local workers were available for the position.
Residence Permit for Employment Purposes
- Purpose: For those who wish to reside and work in Uruguay for an extended period.
- Types:
- Temporary Residence: For those planning to stay and work in Uruguay for longer than one year but do not seek permanent residence.
- Permanent Residence: For individuals intending to live and work in Uruguay indefinitely.
- Requirements: Proof of employment in Uruguay, including a work contract, along with a valid passport, medical certificate, and criminal background check.
MERCOSUR Residence Visa
- Purpose: For citizens of MERCOSUR countries (Argentina, Brazil, Paraguay, and others) and associated states.
- Duration: Up to two years, with the option for permanent residency.
- Requirements: Applicants must be nationals of a MERCOSUR member or associated country and provide basic documentation such as proof of identity and financial stability.
Business Visa
- Purpose: For foreign nationals entering Uruguay for short-term business purposes such as meetings, conferences, or negotiations.
- Duration: Usually valid for up to 90 days.
- Requirements: Proof of the business purpose and supporting documentation from the inviting company.
Hire Uruguayan Talent with Global Expansion
Setting up a company in Uruguay can be expensive and complex. Global Expansion simplifies your entry into this market.
We handle hiring, HR, and payroll while ensuring compliance with local regulations, all without establishing a local entity.
Our Uruguay Employer of Record (EOR) solution lets you focus on your business growth.
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