Hiring in Uruguay: Complete Guide 2027
Everything you need to know about hiring and managing employees in Uruguay
Overview
Uruguay has 3.4 million people and an outsized software sector: Montevideo's free zones host development centres and shared-service teams on US East Coast and European hours. Employer charges to the BPS are 12.6% of gross (retirement 7.5%, FONASA 5%, FRL 0.1%) plus a Banco de Seguros accident policy, below Argentina, Brazil and Colombia. The cost that surprises buyers sits elsewhere: an aguinaldo of one month paid in two halves, the salario vacacional, and dismissal pay of one month per year of service with no statutory notice. An EOR carries the BPS employer number and the DGI withholding.
Currency
Primary Language
Payroll Tax
Pay Frequency
Overview
Employer Costs
Employer Social Contributions
Mandatory Benefits
EOR Service Fee
Total Additional Cost
Employee Deductions
Income Tax
Employee Social Contributions
Mandatory Employee Benefits
PAYROLL & SETUP
Setting Up Payroll in Uruguay
Payroll in Uruguay runs monthly in pesos. The employer takes a RUT from the DGI and an employer number from the BPS, and registers staff on the MTSS planilla de trabajo and with the BPS from day one. Employer contributions in 2026 are 12.6% of gross: retirement 7.5%, FONASA 5% (with a complemento de cuota mutual on low salaries) and the FRL 0.1%, plus the Banco de Seguros work-accident policy rated by activity. Employees pay 15% retirement, FONASA at 3% under 2.5 BPC and 4.5%, 6% or 8% above it by spouse and children covered, and 0.1% FRL. IRPF is withheld monthly and paid to the DGI: 0% up to 7 BPC (the 2026 BPC is UYU 6,864), then 10%, 15%, 24%, 25%, 27%, 31% and 36% above 115 BPC. The minimum wage is UYU 24,572 from 1 January 2026 and UYU 25,383 from 1 July 2026; the consejos de salarios set higher floors by sector. An EOR files the BPS nómina, the DGI withholding, the aguinaldo in June and December and the salario vacacional.
Key Labor Laws &
Requirements
Employment Contracts
- Written contract recommended, BPS registration from day one
- No statutory probation: 90 days by written clause
- Consejos de salarios set sector pay floors
Leave & Time Off
- 20 days annual leave after a year, plus salario vacacional
- Maternity 14 weeks, then parental half-time
- Aguinaldo paid in June and December
Termination Rules
- No statutory notice period
- One month per year of service, capped at six months
- Double compensation around maternity leave
COMPLIANCE
Dismissal Pay and Wage Councils in Uruguay
Uruguay has no statutory probation and no statutory notice. A 90-day trial exists only if the contract says so in writing before the start, and the consejo de salarios for the sector may frame it. Dismissal needs no cause, but it costs one month's pay per year of service or fraction, capped at six months (Ley 10.489 and Ley 10.570), with the aguinaldo and leave pay settled on top; a dismissal during or after maternity leave is paid double. The second layer is Ley 18.251: a firm that supplies staff to your company is an intermediary, and you answer jointly or subsidiarily for its unpaid wages and BPS contributions. Ask which entity signs and for its certificado común. Hours are capped at 8 a day, 44 a week in industry and 48 in commerce.
Key Challenges
- No statutory probation: a 90-day trial exists only in writing before the start
- Dismissal pay of one month per year of service, capped at six months
- Consejos de salarios set sector floors above the UYU 25,383 minimum
- Joint liability for a staffing intermediary's unpaid wages under Ley 18.251
- Aguinaldo and salario vacacional on top of the 12.6% BPS charge
Country Highlights
Advantages
- Employer BPS charge of 12.6%, below Argentina, Brazil and Colombia
- Montevideo's software export sector, on US East Coast hours
- No statutory notice period on dismissal
- Foreign hires may work from the day the residence application is filed
- Free zones (Ley 15.921) host shared-service and development centres
Popular Industries & Roles
Technology
Avg. Salary: UYU 1.2M-UYU 2.4M
Montevideo's free zones and software exporters hire developers, QA and data engineers for US and European clients
Agribusiness & Forestry
Avg. Salary: UYU 800k-UYU 1.6M
Beef, soy, dairy and pulp drive exports; agronomists, traders and plant managers are the recurring hires
Finance & Shared Services
Avg. Salary: UYU 900k-UYU 1.8M
Shared-service centres in Zonamerica and Aguada Park staff finance, accounting and customer operations teams
Top 3 Providers in Uruguay
Based on our analysis of pricing, compliance record, service quality, and customer reviews
Biz Latin Hub
- LATAM PEO/EOR across 18 countries
- Now part of Vistra (Dec 2025)
- Deel and Multiplier B2B partner
- Back-office through to entity formation
Deel
- EOR in 130+ countries; owned entities in 120+
- Contractor and EOR in one platform
- 300+ integrations including Slack, Workday
- AI-powered compliance automation
Rivermate
- Human-first EOR from $319–$639/month by country
- G2 #1 for Ease of Use and Best Support
- 180+ countries, 38 owned entities (Hightekers)
- 24/7 real experts via Slack and WhatsApp
Frequently asked questions
Hiring in Uruguay through an EOR, in short.
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How much does an employer pay on top of salary in Uruguay?
Employer contributions in Uruguay come to ≈12.6%; the largest mandatory line is Retirement 7.5%. With the other statutory benefits and a typical EOR fee, budget ~25–40% on top of gross salary.
What does an EOR charge per employee in Uruguay?
Published EOR fees in Uruguay run $400–700/mo per employee per month, with any setup fee negotiated separately. The fee is flat, so it weighs less as the salary rises.
What does an employee in Uruguay pay in tax and contributions?
Income tax is 0–36% progressive and employee social contributions are ≈18–23% (15% retirement), both withheld by the employer on every pay run.
How long does it take to hire through an EOR in Uruguay?
3-7 Days once the employee's documents are in. The contract is issued by the EOR's local entity and payroll runs on the local cycle (Monthly).
Which EOR providers rank best in Uruguay?
Biz Latin Hub, Deel and Rivermate hold the first three places in our ranking for hiring in Uruguay. The full top 10, with the questions to put to each provider before signing, is here: Top 10 EOR providers in Uruguay.
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