Powering Payroll, Compliance & Workforce Management in Uruguay

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High-angle view of the coast of Montevideo, the economic centre and capital of Uruguay

Uruguay at a Glance

Whether you're hiring your first employee or expanding an existing team, understanding the local employment landscape is essential. From visa requirements and statutory benefits to payroll taxes and regulatory oversight, this section provides a practical overview of what employers need to know to stay compliant and operate effectively in 

Uruguay
Work Permits & Visas

Foreign nationals must obtain residency and work authorisation to work in Uruguay. Employers often support the process, although the system is relatively flexible for foreign workers.

Payroll
  • Employers must register with the Dirección General Impositiva (DGI) and the social security authority (BPS).
  • Payroll is typically processed monthly. Employers must:
    • Withhold income tax
    • Deduct employee contributions
    • Pay employer social security contributions
  • Social Security Contributions (approximate):
    • Employer: ~12–15%
    • Employee: ~15%
Employment Contracts
  • Contracts may be fixed-term or indefinite. Written agreements are standard.
  • Probation Period: Commonly 3 months.
  • Working Hours: Standard workweek: 44–48 hours
  • Termination: Termination is permitted with notice or compensation.
  • Severance: Employees are entitled to severance, generally equivalent to one month’s salary per year of service (capped).
Employee Benefits
  • Annual Leave: Minimum 20 days paid leave.
  • Sick Leave: Paid sick leave covered through social security.
  • Maternity Leave: 14 weeks paid leave.
  • Paternity Leave: Typically 10–13 days.
  • Public Holidays: Approximately 12 national holidays.
  • Additional benefits include mandatory bonuses such as the 13th salary (aguinaldo).
Tax Overview
  • Tax Residency: Individuals spending more than 183 days in Uruguay are considered tax residents.
  • Tax Year: January 1 – December 31.
  • Uruguay applies a progressive income tax system with rates up to 36%.
Personal Income Tax
Annual Taxable Income (UYU) Tax Rate
Up to threshold 0%
Lower brackets 10% – 15%
Mid brackets 20% – 25%
Upper brackets 30% – 36%

Full Country Guide

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Uruguay

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Uruguay

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Uruguay
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Compliance

Stay ahead of legal changes. We ensure your payroll and employment practices remain fully compliant with

Uruguay

's laws

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Whether you need Payroll Outsourcing, Employer of Record services, or advanced Payroll Software, our experts are here to help you find the right solution. Contact us today for support with payroll, compliance, and hiring in

Uruguay