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
Currency :
Uruguayan Peso (UYU, $, $U)
Languages spoken :
Spanish
Population :
3.485 million (2021 est.)
Minimum wage 2022 :
UYU 19,364 (Monthly)
Cost of Living index :
$$$ (49 of 139 nations)
Payroll Frequency :
Monthly
VAT - standard rate :
22%
GDP - real growth rate :
4.4% (2021 est.)

Statutory Holidays

The national holidays mentioned below are valid for the year 2022.

 

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

Date
Holiday Name
Extra Information
*January 1
New Year’s Day
January 6
Epiphany Day
February 28
Carnival Monday
Movable - Monday before Ash Wednesday
March 1
Carnival Tuesday
Movable - Tuesday before Ash Wednesday
April 14
Maundy Thursday
Movable - Thursday before Easter Sunday
April 15
Good Friday
Movable - Tourism Week (Semana de Turismo)
April 18
Landing of the Patriots
Movable
*May 1
Labor Day
May 16
Battle of Las Piedras
Movable
June 19
Birth of Artigas
*July 18
Constitution Day
*August 25
Independence Day
October 10
Day of the Race
Movable
November 2
All Soul’s Day
*December 25
Christmas Day

Contract Sharing Time


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.

What You Need To Know


  • 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.

Labor Conditions


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.

Leave / Time Off

Annual Leave

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.

Sick Leave

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.

Parental Leave

Maternity Leave

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). 

 

Paternity Leave

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.

 

Adoption Leave

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.

Other Types of Paid Leave

Paid LeaveLeave Length
Study LeaveUp to 12 days
Marraige Leave3 days
Bereavement Leave3 days

Unpaid Leave

There is no statutory provision for unpaid leave.

Statutory Benefits

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

BenefitsEmployer Contributions
Retirement7.5%
Health Insurance5% + CCM* if applicable
Labor Reconversion Fund0.1%
Labor Credit Guarantee Fund0.025%

*Complemento de Cuota mutual (CCM)

Health Insurance

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.

Other Insurances

Accident Insurance

Accident insurance to cover work accidents and occupational illnesses is compulsory for private-sector and public-sector employees performing manual activities under risky conditions.

 

Unemployment Insurance

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).

Public Pension

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.

Other Statutory Benefits

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.

Disclaimer

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.

Information provided in this Country Guide is provided “as is” without warranty of any kind, either express or implied, including without limitation warranties of merchantability, fitness for a particular purpose, or non-infringement. WorkMotion Software GmbH periodically adds, changes, improves, updates, or removes information without notice, and assumes no liability or responsibility for any errors or omissions in the contents of this Country Guide. This Country Guide may contain links to other websites. WorkMotion Software GmbH disclaims all liability for the privacy practices or the content of such websites.

 

 

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