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Employer of Record Uruguay
Hire staff and expand your business in Uruguay with our fully-managed EOR Service
How we can help
Unrivalled Employer of Record Service in Uruguay designed to expand your business seamlessly
Agility EOR delivers services for business’s looking for an Employer of Record in Uruguay. We help clients hire new employees or transfer existing employees into a fully-managed EOR service.
We appreciate that each situation and business is different. That is why our personal approach to Employer of Record Services in Uruguay takes care of all HR, payroll, recruitment and compliance head aches, and allows you to do what you love best – driving your business forward.
Employer of Record in Uruguay
A Brief Guide to Uruguay
Sitting on the southeastern edge of South America, Uruguay can best be described as a hidden gem. Nestled between two giants, Brazil and Argentina, this small country is a tapestry of rich history, vibrant culture, beautiful landscapes, and a thriving economy. Its modernized cities and progressive social policies paint an inviting picture for businesses looking to expand overseas.
Category | Information |
Location | South America |
Capital City | Montevideo |
Official Languages | Spanish |
Area | 176,215 square kilometers |
Population | Approximately 3.5 million |
Currency | Uruguayan peso (UYU) |
Major Cities | Montevideo, Salto, Ciudad de la Costa |
GDP | Around $60 billion |
Major Industries | Agriculture, Services, Manufacturing, Tourism |
Business Culture
Business Culture in Uruguay
Uruguayans place a high value on personal relationships in business, with trust and respect playing key roles in establishing fruitful partnerships. Punctuality is appreciated but meetings often start a bit late and can extend past their scheduled time. Business attire is typically formal, and business cards are commonly exchanged. However, the work environment is generally relaxed with a friendly ambiance.
Uruguayan business culture tends to be hierarchical, with decisions usually made at the top. Therefore, patience and respect towards senior executives are considered paramount. Also, it’s common to engage in small talk before getting down to business matters, reinforcing the importance of interpersonal relationships.
Payroll and Taxes
Payroll and Taxes in Uruguay
In Uruguay there is a mandatory payment of a 13th month salary. The amount is equal to one months salary, with half being paid in June and the other half in December.
Employee Taxation
In Uruguay, income tax rates are progressive, with higher income levels subject to higher tax rates.
Gross Annual Salary (UYU) | Tax Rate (%) |
Up to 433,776 | 0% |
433,776 – 619,680 | 10% |
619,680 – 929,520 | 15% |
929,520 – 1,859,040 | 24% |
1,859,040 – 3,098,400 | 25% |
3,098,400 – 4,647,600 | 27% |
4,647,600 – 7,126,320 | 31% |
7,126,320 + | 36% |
Employer Taxation
Employers in Uruguay are also responsible for various employer costs, which may include:
Fund Type | Contribution on taxable salary (up to UYU 215,179 per month) |
Pension | 7.5% |
Healthcare | 5% |
Labour Restructuring | 0.1% |
Labour Credit Guarantee | 0.025% |
Pension and Healthcare
Uruguay Pensions
The Uruguayan pension system is a mix of pay-as-you-go and individual savings accounts. The system is administered by the Banco de Previsión Social (BPS) and regulated by the Ministry of Labor and Social Security. Employers and employees contribute a certain percentage of the salary to the pension fund, which is then managed by the BPS. There are also private pension fund management companies where individuals can voluntarily save for additional retirement income.
Healthcare in Uruguay
Uruguay’s healthcare system is notable for its universal access, a result of its integrated public and private sectors. The National Health Fund (FONASA) serves as the public healthcare system, funded by taxes and administered by the Ministry of Public Health. FONASA covers basic health services and procedures, providing care to all citizens and legal residents.
On the other hand, the private healthcare system, comprised of mutualistas or healthcare cooperatives, operates alongside the public system. Mutualistas provide more extensive services and shorter wait times but require additional membership fees.
The quality of healthcare in Uruguay is generally high, especially in urban areas. Modern facilities, skilled healthcare professionals, and state-of-the-art technologies are commonly found. However, access to quality healthcare in rural regions may vary. Overall, Uruguay’s commitment to healthcare access has resulted in one of the best healthcare systems in Latin America.
Employment Law
Employment Law in Uruguay
Relevant Legislation: Employment law in Uruguay is primarily governed by the Labour Constitution, the Law of Cooperatives, and various international conventions adopted by the International Labour Organization (ILO).
Employment Contracts: In Uruguay, an employment contract can be either verbal or written, but a written contract is recommended for certain types of work and to ensure clarity. It should outline the terms of employment, including salary, working hours, and job responsibilities.
Working Hours: The standard working week in Uruguay is 48 hours, typically spread over six days. The maximum daily working hours is eight, but exceptions exist for certain industries.
Leave: Employees in Uruguay are entitled to 20 days of paid annual leave after one year of service. Maternity leave is 12 weeks, fully paid, and paternity leave is 10 days. There are also provisions for paid sick leave.
Overtime: Overtime is usually paid at a rate of 50% above the regular wage. It applies to work done beyond the standard eight-hour workday and 48-hour workweek. The law restricts excessive overtime to protect workers’ health and safety.
Termination: Employers can terminate employment for various reasons such as misconduct or redundancy. They must follow the due process laid down in the labour law, which includes proper communication and adherence to notice periods.
Notice: Employers are required to give notice before terminating an employee. The notice period depends on the employee’s length of service, typically ranging from one week to one month.
Severance Pay: Severance pay is mandatory in Uruguay when an employee is dismissed without just cause. The amount depends on the length of service, with one month’s salary for each year of service being common.
IMMIGRATION
Work Permits in Uruguay
The immigration system in Uruguay is administrated by the Dirección Nacional de Migración (National Directorate of Migration). Uruguay, known for its inclusive and progressive policies, has a relatively open immigration system, striving to offer a welcoming environment for foreigners who wish to live and work in the country.
The process for applying for a visa or residency depends on your country of origin, purpose of stay, and planned length of stay. For most nationalities, a tourist visa or visa waiver is available for short stays, typically up to 90 days. However, for longer stays and for those intending to work, it is necessary to apply for a Temporary Residence Visa or Permanent Residence Visa.
The Temporary Residence Visa is suitable for those planning to stay in Uruguay for a specific period, often tied to the duration of a work contract or a specific project. It is usually valid for up to two years and can be renewed. Foreign nationals holding this visa have the right to work in Uruguay.
The Permanent Residence Visa, as the name suggests, is for those planning to stay indefinitely. The process is more complex and requires more documentation, including proof of income or financial independence, a clean criminal record, and medical checks. Once granted, it offers more benefits, such as the right to work without restriction, and access to social services.
Moreover, Uruguay has a special program called Uruguay Residency Program aimed at attracting entrepreneurs, investors, and retirees from abroad. This program offers streamlined procedures for acquiring residency and provides certain tax advantages.
Public Holidays
Uruguay Public Holidays
Holiday | Date |
New Year’s Day | January 1 |
Carnival | Variable (February/March) |
Maundy Thursday | Variable (March/April) |
Good Friday | Variable (March/April) |
Labour Day | May 1 |
Battle of Las Piedras | May 18 |
Birthday of General Artigas and Never Again Day | June 19 |
Independence Day | August 25 |
Day of the Race | October 12 |
All Souls Day | November 2 |
Christmas Day | December 25 |
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The Benefits
Uruguay Employer of Record Benefits
When you choose Agility EOR to expand in Uruguay, we guarantee an Employer of Record Service tailored to the needs of your business
Compliance
We are on top of regulatory changes in Uruguay so you can relax.
Cost reduction
Allow our economies of scale to work in your favour.
High Service Levels
You and your employees have a dedicated account manager.
Fixed Cost Pricing
We will agree our professional fees up front based on your needs - no nasty surprises!
Consolidated Invoicing & Payments
Make one monthly payment to cover all your tax, social and wages costs from one to one thousand employees.
Fast delivery
You can have 'boots on the ground' within days on our infrastructure.
Reduced Risk
All wage taxes are remitted in full to the Uruguayan authorities by professionals ensuring liabilities are met, giving you peace of mind.
Supply Chain Transparency
We only pay employees through local full employed solutions meaning Uruguay payroll tax is paid on all funds.
Save Time and Money
Our expertise is at your disposal. The need for you to have internal HR, Payroll and admin staff is eliminated.