Uruguay is a constitutional republic located in South America. It is notable for its political stability, advanced social legislation, and high gross national product (GNP) per capita. More than half of the country’s workforce is employed in services and trade, one-fifth in manufacturing, and relatively few in financial institutions and agricultural enterprises.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Uruguay.
Uruguayan Peso (UYU, $, $U)
Languages spoken :
3.47 Million (2020 est.)
Minimum wage 2022 :
UYU 19,364 (Monthly)
Cost of Living index :
$$ (49 of 139 nations)
Payroll Frequency :
VAT - standard rate :
GDP - real growth rate :
-5.9% (2020 est.)
When hiring new employees in Uruguay through WorkMotion, the approximate onboarding time is only 14 business days.
Our team ensures compliance with local employment legislation, as well as a quick and efficient onboarding process. The minimum onboarding time begins from the moment that WorkMotion has received all required information from both the client and the employee.
For more complex onboardings, this time may increase depending on the selected bouquet of contract inclusions and the right-to-work status of the employee.
Employees cannot work more than eight hours a day, nor more than:
Overtime cannot exceed eight hours per week, and attracts a 100% surcharge on the value of the simple hour when performed on business days.
There is no statutory provision for probation periods
There is no statutory termination notice period.
All employees are entitled to an annual paid leave of at least 20 days, and one additional day of leave for every four years of seniority after more than five years of service.
Employees can receive sick leave pay from the fourth day of absence caused by illness or accident with a maximum period of one year that may be extended up to one more year. They can also receive sick pay from the first day of hospitalization.
Employees are entitled to 14 weeks (98 days) of maternity leave, paid by the Social Security Bank. The leave begins six weeks before the expected date of delivery (42 days prepartum) and extends up to eight weeks after delivery (56 days postpartum).
Employees are entitled to 13 days of paid paternity leave from the day of delivery. The first three days are paid by the employer and the following 10 are paid by the Social Security Bank.
Adoptive fathers are entitled to three days of adoption leave from the day of minor possession or notification of the adoptive legitimation judgment. After the initial three days, either parent can take a special leave for adoption or adoption legitimation for up to six continuous weeks or 42 days.
|Paid Leave||Leave Length|
|Study Leave||Up to 12 days|
|Marraige Leave||3 days|
|Bereavement Leave||3 days|
There is no statutory provision for unpaid leave.
Employers contribute 5% to health insurance.
The National Integrated Health System regulates the right to health protection of all the country’s inhabitants, through a National Health Insurance (Seguro Nacional de Salud, SNS), financed by the National Health Fund (Fondo Nacional de Salud, Fonasa).
Complemento de Cuota mutual (CCM) arises from the difference between the value of the mutual contribution for the number of beneficiary workers and the basic contribution of all dependent personnel.
Accident insurance to cover work accidents and occupational illnesses is compulsory for private-sector employees and public sector employees performing manual activities under risky conditions.
Employers contribute 0.1% to the Labor Reconversion Fund (FRL).
Labor Reconversion Fund (Fondo Reconversión Laboral, FRL) serves to retrain those who are unemployed, through the National Institute of Employment and Professional Training (INEFOP).
Employers contribute 7.5% to employees’ retirement.
Uruguay has a mixed pension regime, consisting of two contribution tranches that complement each other: the solidarity regime of the Social Security Bank and the individual savings regime administered by the Administrators of Social Security Savings Funds (AFAP). The retirement age for common retirement is 60 years old for employees with 30 years of service and contributions
Labor Credit Guarantee Fund
Employers contribute 0.025% to the Labor Credit Guarantee Fund.
It is a benefit that is granted to employees or former employees with unpaid work credits, verified by judicial means, due to the insolvency of the company.
The information contained in this Country Guide is provided for informational purposes only and should not be construed as legal advice on any subject matter. The contents of this Country Guide contain general information and may not reflect current legal developments or address your situation. You should not act or refrain from acting on the basis of any content included in this Country Guide without seeking the advice or representation of a licensed attorney. WorkMotion Software GmbH disclaims all liability for actions you take or fail to take based on any content included in this Country Guide.
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