Hire in Uruguay

Uruguay PEO &

Employer of Record

Hire & manage teams remotely in Uruguay without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.

EOR Uruguay PEO

Business Language

Spanish

Salary Currency

Uruguayan peso

Capital city

Montevideo

Time zone

UTC -3

EOR in Uruguay

EOR Uruguay PEO

Hire Employees in Uruguay

NNRoad provides professional employment organization (PEO) & employer of record (EOR) services in Uruguay to ensure that your business complies with local labor laws and regulations. We process monthly payroll and act as the Employer of Record, taking on all local employer liabilities.

Fast Hiring

Start working with your remote employees in a week.

Foreigner Visas

NNRoad assists with overseas foreign hires visa needs.

Platform

Access your payroll reports on our portal.

Employer of Record in Uruguay

Employer of Record (EOR) services are for companies who do not have a legal entity in Uruguay, but who want to hire localy. Employment and full liability are outsourced to NNRoad.

1. Candidate Selection

Select the candidates you want to hire in Uruguay.

2. Employee Onboarding

We sign a local labor contract with your employees based in Uruguay.

3. Compliance & Payroll

We manage monthly payroll, mandatory benefits & all HR compliance in Uruguay.

EOR service includes:

Hiring and termination of employees/local labor contracts (contract administration – engagement, extension termination and conversion to permanent hire).

All mandatory employer (and employee) contributions filed and paid for your EOR employees.

Payroll recording, reporting and administration.

Distribution of salaries to employees through direct deposit into their bank accounts.

Calculation, reporting, filing and processing of EOR employee’s individual income tax due.

Collecting and processing your employee’s invoices for business related expenses.

Guiding and organizing your expat employee’s work visa application too guarantee their successful onboarding.

Standalone Payroll & PEO in Uruguay

Professional Employment Organization (PEO) services are for companies who have a legal entity in Uruguay, and want to outsource their payroll. Employment liabilities are shared between your organization and NNRoad.

Employee Income Taxes:

Individual income tax rates in Uruguay are based on progressive tax brackets.

In Uruguay, the income tax system operates on the basis of declared income tax, where employees are responsible for declaring their income to the government. This means that employees must accurately report their earnings and any applicable deductions or exemptions to ensure compliance with tax laws.

Tax Brackets:

Sample Calculation

Employer Contribution

Employers in Uruguay are required to make contributions towards various social security funds on behalf of their employees. These contributions typically amount to approximately 23% of the employee’s salary. This includes contributions to retirement pensions, healthcare, and other social security benefits as mandated by law. The specific percentage contribution may vary depending on the industry and collective bargaining agreements in place.

Employee Contribution

Employers in Uruguay are required to make contributions towards various social security funds on behalf of their employees. These contributions typically amount to approximately 23% of the employee’s salary. This includes contributions to retirement pensions, healthcare, and other social security benefits as mandated by law. The specific percentage contribution may vary depending on the industry and collective bargaining agreements in place.

Social Security

Social security contributions in Uruguay cover various benefits such as retirement pensions, healthcare, disability benefits, and unemployment insurance. These contributions are deducted from the employee’s salary and paid by the employer to the government on a regular basis. The contributions help ensure that employees have access to essential social protections throughout their working lives.

Pension Fund

Employers in Uruguay are obligated to contribute to their employees’ pension funds, which serve as a crucial component of the country’s social security system. These contributions typically amount to around 10% of the employee’s salary and are designed to provide financial security for retirees in their later years.

Healthcare Insurance

While healthcare in Uruguay is primarily provided through the public healthcare system, some employers may offer private healthcare insurance as an additional benefit to their employees. The contributions towards healthcare insurance can vary depending on the specific plan chosen by the employer and may be provided as part of the overall employee benefits package.

Working Hours Per Week

In Uruguay, the standard working week consists of 44 hours, typically spread across five days. This standard working hours framework is established by law and applies to most industries and sectors. However, specific working hour arrangements may vary depending on the nature of the job, collective agreements, or individual employment contracts.

Overtime

Overtime work in Uruguay is subject to regulation to ensure that employees are fairly compensated for additional hours worked beyond the standard 44-hour week. Typically, overtime is compensated at a rate of 150% of the regular hourly wage. This means that for each hour of overtime worked, employees are entitled to receive their regular wage plus an additional 50%.

Employers in Uruguay may terminate employees’ contracts under certain legal grounds, which are typically outlined in labor laws and regulations. These grounds may include misconduct, redundancy due to organizational restructuring, poor performance, or breach of contract. It’s important for employers to follow due process and provide valid reasons for termination to avoid potential legal disputes.

Severance

In the event of termination, employees in Uruguay are entitled to receive severance payments as mandated by law. The standard severance payment typically amounts to one month’s salary for each year of service, although this may vary depending on factors such as the terms of the employment contract or collective bargaining agreements.

Notice Period

Employers are required to provide notice to employees before terminating their contracts, with the duration of the notice period depending on various factors such as the length of employment and the specific circumstances of the termination. The notice period for employers typically ranges from 15 days to 3 months, while employees who choose to resign are usually required to provide a notice period of 15 days.

Employment Contract

Probation Period

Employment contracts in Uruguay may include a probationary period during which the employer and employee can assess each other’s suitability for the role. The maximum legal probation period duration is typically set at three months, during which time either party can terminate the contract with minimal notice.

Annual Leave

Employees in Uruguay are entitled to paid annual leave as a form of rest and recreation from work. The standard allowance for annual leave is 20 days per year, although this may vary depending on factors such as the length of employment or any collective agreements in place.

Sick Leave

Uruguayan labor laws typically provide for both paid and unpaid sick leave to ensure that employees can take time off work when they are unwell without facing financial hardship. The specific entitlements for sick leave may vary, but employees typically receive around 10 paid sick days per year, with additional unpaid leave available if necessary.

Maternity Leave

Maternity leave provisions in Uruguay aim to support mothers during pregnancy and childbirth by providing them with paid time off work to care for their newborn child. The standard maternity leave entitlement is 12 weeks, during which time mothers receive full pay as mandated by law.

Paternity Leave

Fathers in Uruguay are also entitled to paternity leave to bond with their newborn child and support their partner during the early stages of parenthood. The standard paternity leave entitlement is typically around 5 working days of paid leave, although this may vary depending on the employer’s policies and any applicable laws or regulations.

Public Holidays

January 1st – New Year’s Day
March 24th – National Day of Remembrance for Truth and Justice
May 1st – International Workers’ Day
July 18th – Constitution Day
August 25th – Independence Day
October 12th – Columbus Day
November 2nd – All Souls’ Day
December 25th – Christmas Day

Resources

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