Don’t risk non-compliance with local employment, social insurance, and tax regulations.
Omnipresent provides global employment solutions and professional employment organisation (PEO) services for companies looking to grow and build out a global team in Uruguay. Traditional methods of establishing global employment and subsidiaries in Uruguay typically take months and can incur heavy costs. Omnipresent’s global employment solutions and PEO services is helping hundreds of organisations onboard new employees in Uruguay in a matter of days with full compliance of local labour laws. We use a tech-forward approach to streamline the process.
Employer costs include Pension Fund, National Health Fund (Fonasa), and Industrial Accidents and Occupational Diseases Insurance. Use the OmniCalculator to estimate costs, or contact us for further information.
The rate of personal taxation varies depending on the income tax bracket the individual belongs to. This ranges between 0% - 36%.
Employees cannot work more than 44 (regarding trading sector)/48 (regarding industry sector) hours per week, 8 hours per day (6 days a week with 1 break day, Sunday). Overtime is capped and compensated.
Please note that the below information covers national holidays and should be used for informative purposes only and not as a guarantee for payroll purposes. While we strive to offer you accurate information, public holidays are subject to frequent changes and can be dependent on regional differences. Should you need more detailed information on public holidays, please consult the government pages of the state and/or the local municipality of your employee.
Employees in Uruguay are entitled to 12 months sick leave. In special circumstances this can further be extended to 24 months.
The first 3 days of sick leave are paid in full by the employer. From the 4th day onward the employee is paid 70% of their wages by the institute of Social Security (BPS).
Maternity Leave: Maternity leave in Uruguay consists of 6 weeks leave before birth and 8 weeks leave after birth paid by the BPS .
Paternity Leave:Paternity leave consists of 13 days of leave from the day of childbirth. The employer pays the first three days, and the next ten days are paid by the BPS.
After 1 year service: 20 days paid annual leave per year.
During first year of employment, employees accumulate the right to take holiday in the following year.
For every 4 years of work with the same employer employees are entitled to 1 additional holiday day (capped at 25 days). The company has to give this benefit when the employee has been working at the company for 5 years.
All employees are entitled to paid holidays i.e. in addition to their right to 20 days of paid holiday leave, they must be given an additional payment, equivalent to 100% of their take home pay for those 20 days.
Severance is typically required in Uruguay, unless in case of redundancy. However, other payments may be required in certain specific circumstances.
Termination is simple in Uruguay but requires severance payment for termination without cause. There are additional procedural requirements for termination with cause.
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The benefits of growing a global team and finding the best talent anywhere in the world are endless. It’s important to note that labour laws and regulations in Uruguay are strict with penalties for non-compliance. Let our team take care of the global employment solutions such as payroll, benefits, compliance, taxes, and admin so you can focus on growing your business. We are here to help you every step of the way.
Omnipresent makes it easy to hire, pay, and support your international team with our top-notch services including our global EOR & PEO services. Book a call with us to start building your global team today. Book a call with us to start building your global team today.
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