Uruguay PEO & Employer of Record

New Horizons will help you expand into Uruguay more efficiently

Expand your business into Uruguay, with or without an Uruguayan entity

Uruguay has an export-heavy economy, a well-educated population, and a huge amount of potential for future growth, all of which make it an excellent destination for foreign investment. However, the country’s regulations can be difficult to navigate, and expansion into Uruguay can take longer than expected.

At New Horizons, we work to help businesses from any and all industries expand into Uruguay. Our professional employer organization (PEO), employer of record, and payroll services can offer you everything you need to start your Uruguayan expansion rapidly, efficiently, and compliantly.

Our services give you everything you need to start operating in the Uruguayan market, potentially saving you thousands of Pesos in expansion costs and getting you up and running faster.

Our Uruguay PEO simplifies your expansion

New Horizons can help you expand into Uruguay, even if you don’t have a Uruguayan subsidiary

Rapid Market Entry

New Horizons will enable you to source, hire, and onboard professionals across Uruguay in as little as 48 hours.

Cost-Effective Expansion

Our PEO solution can help you benefit from cost savings of up to 82%, without the need to establish an Uruguay entity.

Payroll Services

Simplified Uruguay salary & payroll processing, including any tax, withholdings, and any other required contributions.

Employee Onboarding

Utilize the relevant provision for all types of Uruguay labor contracts, whether a fixed-term or open-ended contract.

Onsite Legal & HR Team

Full support for Uruguay-specific contract renewals, terminations, annual leave management, HR, and strategic guidance.

Ensure Full Compliance

We ensure that employment contracts are fully compliant and adhere to Uruguay labor laws and best practices.

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Hiring in Uruguay: Employment law overview

Employment contracts in Uruguay

When hiring employees in Uruguay, we strongly recommend that you put a written employment contract in place. Contracts should include any relevant details of the employment agreement, be written in Spanish, and use the Uruguayan peso as currency.

Working hours in Uruguay

The standard working week for employees in Uruguay is 48 hours spread across five days of work.

Public holidays in Uruguay

There are several national holidays in Uruguay, for which most employees receive the day off work:
Date
Description
1 Jan
New Year’s Day
6 Jan
Children’s Day
24 Feb
Carnival Monday
25 Feb
Carnival Tuesday
01 Mar
Presidential Inauguration Day
06 – 08 Apr
Bank Holiday
09 Apr
Maundy Thursday
10 Apr
Good Friday
20 Apr
Landing of the 33 Patriots Day
01 May
Labour Day
18 May
Battle of Las Piedras
19 Jun
Artigas’ Birthday
18 Jul
Constitution Day
25 Aug
Independence Day
12 Oct
Day of the Races
02 Nov
All Souls’ Day
25 Dec
Day of the Family

Uruguay vacation leave

Employees in Uruguay are entitled to at least 20 days of paid leave annually.

Sick leave in Uruguay

Employees in Uruguay can receive paid sick leave after the fourth day of absence.

Maternity and paternity leave in Uruguay

Female employees in Uruguay are entitled to 14 weeks of paid maternity leave. Male employees are entitled to 10 days of paid paternity leave.

Employee severance and terminations in Uruguay

There is no legally mandated minimum notice period for terminations in Uruguay, but it is good practice to offer one. Severance payments usually equal one month of salary for every year with an employer, up to six months of pay in total.

Taxation in Uruguay

The income tax system in Uruguay is progressive, with rates of between 0% and 36% depending on income level.

The corporate tax rate in Uruguay is generally 25%.

Health coverage in Uruguay

There is a social healthcare system in Uruguay, but employers also regularly offer private medical insurance as a benefit of employment.

Uruguay compensations & benefits

Compensation Laws in Uruguay

The minimum wage in Uruguay is 16,300 pesos per month for full-time employees.

Benefit management in Uruguay

Building a benefits system for your Uruguayan workforce can be difficult and complicated to navigate if you are not familiar with the country, its customs, and its employment laws. To set it up independently, it can take several weeks and potentially lead to unexpected delays.

At New Horizons, we specialize in running the setup and management of Uruguayan employee benefits systems so you don’t have to. We’ll take care of everything, using our knowledge and experience to ensure you are compliant and ready to hire in Uruguay.

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