Hire in Uruguay

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.

Onboard your talent in Uruguay

in 10 minutes

Power icon

Accelerated onboarding

Fast-track your talent onboarding while ensuring 100% compliance with local regulations.

Calculator icon

Net salary calculator

Calculate net salary post deductions and compare it with the salary in other countries instantly.

Reading icon

Guidance & payroll management

Receive process support by an experienced team of experts & pay your talent on time and in their local currency

People icon

Hire in Uruguay through an

EOR

Easily onboard your remote talent in Uruguay through our Employer of Record (EOR) solution. Our subsidiaries and network partners make this process fast and 100% compliant.

A quick overview of Uruguay

Calendar remove icon
Cost of living index

$$$ (49 of 139 nations)

Euro icon
Currency

Uruguayan Peso (UYU, $, $U)

Dollar bill icon
Payroll frequency

Monthly

Basic facts

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.

Capital

Montevideo

Official language/s

Spanish

People icon
Population

3.42 million (2023 est.)

US dollar icon
VAT - standard rate

22%

The national holidays mentioned below are valid for the year 2025.

 

*Mandatory paid leave and holiday pay at double the salary.

*January 1New Year’s Day
January 6Epiphany Day
March 3Carnival MondayMovable - Monday before Ash Wednesday
March 4Carnival TuesdayMovable - Tuesday before Ash Wednesday
April 17Maundy ThursdayMovable - Thursday before Easter Sunday
April 18Good FridayMovable - Tourism Week (Semana de Turismo)
April 19Landing of the PatriotsMovable
*May 1Labor Day
May 18Battle of Las PiedrasMovable
June 19Birth of Artigas
*July 18Constitution Day
*August 25Independence Day
October 12Day of the RaceMovable
November 2All Soul’s Day
*December 25Christmas Day

The approximate time for sharing the contract with an employee in Uruguay is 14 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.

NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.

  • Employers of private activity that have 25 or more permanent workers, in any new entry of personnel produced, must employ people with disabilities, who meet the conditions and suitability for the position, at four percent of all permanent workers.
  • Both the employer and employee must agree on what information technology is to be provided for by the employer in the employment contract, the disagreement of which prompts employers to provide and bear the costs for the equipment, supplies, services, and all other tools necessary for teleworking.
  • There is no statutory provision for probation periods.

In Uruguay, an employer contributes a total of 12.625% towards the social security system, as follows:

Benefits Employer Contributions
Retirement 7.5%
Health Insurance 5% + CCM* if applicable
Labor Reconversion Fund 0.1%
Labor Credit Guarantee Fund 0.025%

*Complemento de Cuota mutual (CCM)

Working Hours

Employees cannot work more than eight hours a day, nor more than:

  • 44 hours per week in the commercial sector;
  • 48 hours per week in the industrial sector.
Overtime

Overtime cannot exceed eight hours per week, and attracts a 100% surcharge on the value of the simple hour when performed on business days.

Probation Period

There is no statutory provision for probation periods

Termination Notice Period

There is no statutory termination notice period for the employee, but as a good practice, the employee can give a two weeks’ notice period.

The employer is required to give a one month notice period.

Working Hours

Employees cannot work more than eight hours a day, nor more than:

  • 44 hours per week in the commercial sector;
  • 48 hours per week in the industrial sector.
Overtime

Overtime cannot exceed eight hours per week, and attracts a 100% surcharge on the value of the simple hour when performed on business days.

Probation Period

There is no statutory provision for probation periods

Termination Notice Period

There is no statutory termination notice period for the employee, but as a good practice, the employee can give a two weeks’ notice period.

The employer is required to give a one month notice period.

Book a free demo to access this information

In Uruguay, an employer contributes a total of 12.625% towards the social security system, as follows:

Benefits Employer Contributions
Retirement 7.5%
Health Insurance 5% + CCM* if applicable
Labor Reconversion Fund 0.1%
Labor Credit Guarantee Fund 0.025%

*Complemento de Cuota mutual (CCM)