Employer of record in Uruguay

We make it easy and painless to expand your business into Uruguay. Forget about dealing with local regulations, confusing tax laws and international payroll management. We take care of all that so you don't have to.

Accelerate your growth into Uruguay compliantly and hassle-free

At Serviap Global we handle all employee onboarding, payroll, compliance, risk, mitigation and benefits, so you can focus on what matters most – your business.

How we can help you expand in Uruguay

As your EOR in Uruguay we’d help you expand by hiring employees and running their payroll without establishing a local branch office or subsidiary. 

Your candidate is hired by a PEO in Uruguay provider in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. Shortly after, your new employee will be working for you, just like any other member of your team. 

Expand to Uruguay with Serviap Global

Through our PEO and EOR services, you can hire qualified talent in your industry without the trouble of opening your own legal entity. 

In just a few days, you can easily and safely build a presence in Uruguay, being sure that your staff will be hired in compliance with labor and tax regulations

Table of contents

Quick facts

Uruguayan Peso (UYU)


Payroll cycle:


The economy

There is a high level of social spending in Uruguay. With an export-oriented agricultural sector and a strong focus on tech training for its young people, many work in information, communication and technology sectors.

Small and medium businesses

Small and medium enterprises (SMEs) play an important role in the development of a country. This is fortunate as SMEs contribute to economic development in various ways by creating employment for rural and urban growing labor force, providing desirable sustainability and innovation in the economy as a whole.

In Uruguay there are around 170,000 small and medium sized enterprises. These companies create more than 60% of jobs in the country.


A well educated workforce of 3.5 million citizens, Uruguay is an attractive location for business. In fact, they have the best-educated workforce in South America.

With each generation entering the workforce going forward, there will be a higher education in both computers and technology. At least 11% of all who go to college enroll in engineering programs.

The country’s workforce is highly skilled, highly educated, and highly capable.

Economic opportunities

Uruguay funds significant time and money toward educating future populations, and the country expects to see a rise in the information technology sector, which is currently booming.

One company, GeneXus, an artificial intelligence developer, is located in Uruguay and has seen tremendous success within the country. The co-founder of GeneXus says, “The world of technology is looking at Latin America” (Forbes), indicating a positive expectation in the country’s technological leadership.

Key sectors of the national economy

Uruguay has five major sectors that make up its annual GDP:

  • Exports / Imports: Uruguay exports goods such as wool, timber, grains, and beef. They have a unique import/export ratio that imports almost as much as they export to other countries.
  • Tourism and hospitality: Like most Latin American countries, Uruguay makes a significant amount of money through tourism. This industry employs a large portion of the population.
  • Agriculture: Uruguay is a member of the Cairns Group, the world’s leading association of countries that create a lot of agricultural exports.
  • Financial service industry: Despite a financial crisis in 2001, Uruguay remains a favorable place for banking due to its flexible financial laws.
  • Information technology: Uruguay is home to a few startup tech companies that are labeled “unicorns” by Forbes; meaning they were valued above $1 billion before traded on the stock market.

Human talent

Uruguay’s citizens are highly educated in technology, this is thanks to the amount of resources they pour into education. They achieve above the regional average in Human Capital and research.

It is expected that business professionals should have some understanding of English. With that being said, however, it appears the majority of people within Uruguay use Uruguayan Spanish as their primary language.

Prominent cities for business

Here are a few large cities within Uruguay ripe for a business looking for excellent outsourcing opportunities:

  • Montevideo: The biggest city within Uruguay, Montevideo, is known as a vibrant cultural city that serves as the chief financial and educational hub of the country.
  • Ciudad De La Costa: This is the third-largest city in the country, but is often thought of as an extension of Montevideo. This city serves as an important commercial and tourist hub for Uruguay.
  • Paysandú: This city is the center of the plantation forest industry for Uruguay and hosts many popular tourist attractions

Technological ecosystem

Uruguay has poured considerable resources into spreading technology and expanding internet access for the region. Almost 100% of the country’s public education has internet access and guaranteed free laptops to students.

The country’s workforce is highly skilled, highly educated, and highly capable. Public sector employment is roughly 80% unionized, giving the workforce a large amount of negotiating power regarding working conditions. The majority of the younger workforce works within the information, communication, and technology sectors.

Facilities for foreign investment

Uruguay has favorable banking regulations from companies investing here. Their skilled workforce is ideal and they have a variety of incentives, with this said technology companies have thrived in Uruguay.


A dinner invitation for 9:00 p.m. usually means to arrive by 10:00 p.m. When you do you may be served one of the most popular meals in Uruguay called Asado, which is basically barbecue meat. In fact, Uruguayans may rival Americans when it comes to the love of meat on the menu.

Chivito is Uruguay’s fast food. It is a sandwich with sliced steak, ham, cheese, eggs and mayonnaise. For your sweet tooth churros are popular as are Alfajors, both filled with dulce de leche.

Uruguayan cuisine is a fusion of foods from mainly western European countries.

General highlights



Num. States/Provinces

23 States

Principal cities

1. Montevideo
2. Salto
3. Paysandú
4. Las piedras, Canelones



Local currency

Uruguayan peso

Date format


Thousands separator format


Country dial code


Time zone



3,423,000 (2023)

Border countries

Argentina and Brazil

Continental surface

176.215 km²

Fiscal year

Calendar year


22% standard
10% applies to certain goods and services such as basic food

Minimum wage

UYU$21,106.00 per month

Taxpayer identification number name in the country


What you need to know about employing personnel in Uruguay:

Laws and agencies that regulate labor relationships

LawsBrief Description
Constitution of UruguayConstitución de la República Oriental del Uruguay is the supreme law of Uruguay
Labor codeUruguayan Labor Law
Tax codeUruguay Ministry of Labor and Social Security
Social SecurityUruguay Ministry of Labor and Social Security

Key tax and labor authorities

Uruguay Ministry of Labor and Social SecurityThey overlook security in workplaces

Labor contracts

Executive decree (No. 42522-MTSS) 
ContractsThere is no legal obligation to put things into a contract in this country.
Ministry of Labor and Social SecurityThis sector overlooks employment laws in this country
Work hours

8 hours per day

48 hours per week except for retail workers who are capped at 44 hours

Basic requirements

Indefinite employment contracts are what is most commonly used in this country. There are also fixed term contracts which allow for a specific period of time and specific task contracts which allow the employer to outline a task that must be completed with no timeline attached.


Legal benefits in Uruguay

  • Your employees must receive supplementary and guaranteed benefits the moment they begin working.
  • 20 vacation days are required per year, and for every 5 years this increases by one day.
  • There are a total of 5 public holidays that Uruguans can take off, but not all require pay.
  • Once you meet minimums you can add market norm benefits to ensure your job offer is more appealing. These can be private healthcare, or more paid time off especially during holidays.

Minimum wage

UYU$21,106.00 per month


Double the normal pay rate on a normally scheduled workday.
Two and a half times when it’s scheduled as a non-working day.

Christmas Salary

Bonus is equal to one month’s salary

It is payable in two installments, in June then December.

Vacations or PTO

All workers hired by individuals or a business are entitled to 20 days of annual paid leave

Leaves of absence

Employees have the right to paid absences for the following things:

Maternity leave:
12 weeks

Paternity leave:
3 days

Marriage Leave:
3 days

Study leave for university students:
6, 9 or 12 days per year based on the number of work hours during the year

Bereavement Leave:
3 days

Leave for union activities
Based on the union’s collective agreement

Employers contribution or labor cost

Annual taxable income

Over this amountNot over this amountTax % on Excess
6,720,600+ 36%

Corporate tax rates

Taxable gross incomeTax Rate
All corporations operating within Uruguay, regardless of residency, are subject to taxes on Uruguayan sourced income.25%.


There are two types of disability Benefits – total and temporary allowance. Furthermore, the National Care System (NCS) offers services for those who are disabled.

Public holidays

DateHoliday name
1 JanuaryNew Year’s Day
6 JanuaryThree Kings Day
15 & 16 FebruaryCarnival
Thursday before Easter SundayMaundy Thursday
Friday before Easter SundayGood Friday
19 AprilDisembarkation of the 33 Orientals
1 MayWorkers’ Day
17 MayBattle of Las Piedras
19 JuneBirth of Artigas
18 JulyConstitution Day
25 AugustIndependence Day
11 OctoberColumbus Day
2 NovemberAll Souls Day
25 DecemberChristmas Day


The Labor Code outlines rules for termination of an employment contract:

Type of terminationBrief description
Justified dismissal or for a cause

In general dismissal is allowed without providing any cause, provided that severance indemnity is paid

Inclusively there is no obligation of a notice prior to dismissal

Unjustified dismissal or without cause

In Uruguay there is no legal definition of unfair or unjustified dismissal

Doctrine and jurisprudence (although not a source of law in Uruguay) have created the category: abusive dismissal

Abusive dismissal is for those cases of notorious abuse by the employer when dismissing a worker
Such as:
offending worker´s dignity
shouting or insults
dismissal as a consequence of testifying against the employer at a labor court

In these cases, apart from the regular severance indemnity, if the employee proves the case at Court, the employer is obliged to pay pain and damages.

Those damages will be one to three times the usual severance amount plus regular severance indemnity

Voluntary resignation

Resignation is always free and voluntary

If there is any breach by the employer or  conduct that forces the employee to resign it is not a resignation but an indirect dismissal

Other forms of compensation upon termination:

Severance pay grades are based on the following table:

Length of employmentSeverance amount
0-30+Three (3) months’ salary for each year

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