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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 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.
Horizons can help you expand into Uruguay, even if you don’t have a Uruguayan subsidiary
Horizons will enable you to source, hire, and onboard professionals across Uruguay in as little as 48 hours.
Our PEO solution can help you benefit from cost savings of up to 82%, without the need to establish an Uruguay entity.
Simplified Uruguay salary & payroll processing, including any tax, withholdings, and any other required contributions.
Utilize the relevant provision for all types of Uruguay labor contracts, whether a fixed-term or open-ended contract.
Full support for Uruguay-specific contract renewals, terminations, annual leave management, HR, and strategic guidance.
We ensure that employment contracts are fully compliant and adhere to Uruguay labor laws and best practices.
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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.
The standard working week for employees in Uruguay is 48 hours spread across five days of work.
Date | Holiday name |
---|---|
1 Jan Sunday | New Year’s Day |
1 May Monday | Labor Day / May Day |
18 Jul Tuesday | Constitution Day |
25 Aug Friday | Independence Day |
25 Dec Monday | Christmas Day |
Employees in Uruguay are entitled to at least 20 days of paid leave annually.
Employees in Uruguay can receive paid sick leave after the fourth day of absence.
Female employees in Uruguay are entitled to 14 weeks of paid maternity leave. Male employees are entitled to 10 days of paid paternity leave.
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.
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%.
There is a social healthcare system in Uruguay, but employers also regularly offer private medical insurance as a benefit of employment.
The minimum wage in Uruguay is 16,300 pesos per month for full-time employees.
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 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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