In this guide
Benefits in Uruguay,
with the context that matters.
Uruguay combines a strong statutory baseline with sector-level bargaining. Every employee is covered through payroll by the Social Security Bank, Banco de Previsión Social (BPS), which funds pensions, National Health Insurance through the National Health Fund, Fondo Nacional de Salud (FONASA), and sickness, maternity, paternity and unemployment benefits. Employers pay 12.625% of salary in social security contributions plus a work-accident premium; employees contribute 18.1% to 23.1%.
Employees also receive a 13th-month bonus (aguinaldo) paid in June and December, 20 days of annual leave with a vacation-pay supplement, five paid public holidays, and a dismissal indemnity of one month's pay per year of service up to six months, with no statutory notice period. Minimum pay and annual raises are set sector by sector by tripartite wage councils (Consejos de Salarios), including a dedicated council for software companies. Employer enhancements centre on hybrid work, recognition, meal and transport support, and premium medical cover. Independent contractors register and pay their own tax and social security.
This guide covers private-sector employees under Uruguay’s national employment and social-insurance rules. Health contributions depend on pay and family coverage; collective agreements and regulated wage councils can add sector-specific terms.
Statutory vs employer benefits in Uruguay
Start with the baseline. See where employers add more.
Statutory rules can be conditional. “Common” describes employer practice for the stated audience, not a guaranteed entitlement. Follow each topic for eligibility and qualifications. This guide is general information, not legal or tax advice.
Try a broader phrase or change your filters. No match does not mean a benefit is unavailable.
Clear search and filtersHealth insurance and healthcare in Uruguay
Public healthcare, insurance and everyday wellbeing. Fill local gaps with international health insurance.
StatutoryCountrywideNational Health Insurance through the National Health Fund
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National Health Insurance through the National Health Fund
Employees are covered by Uruguay's National Health Insurance (Seguro Nacional de Salud), financed by the National Health Fund, Fondo Nacional de Salud (FONASA), within the National Integrated Health System. Registration through payroll gives the employee membership of a health provider of their choice, either a private non-profit mutual provider or the public provider, with access to medical care, hospital treatment and medicines on the provider's terms.
Cover extends automatically to the employee's children under 18 (and older children with a disability), including a spouse's or partner's children when no parent already covers them, and to a spouse or partner who has no cover of their own.
Funding is shared. The employer contributes 5% of salary, plus a mutual-quota complement where contributions fall short of the cost of the members covered. The employee contributes 3% to 8% of salary depending on earnings and family: 3% when monthly earnings are up to 2.5 times the benefits and contributions base, Base de Prestaciones y Contribuciones (BPC), a social security index worth UYU 6,864 in 2026; and 4.5% (single, no children), 6% (with children), 6.5% (with spouse) or 8% (with spouse and children) above that level. Coverage continues while an employee receives sickness, maternity or unemployment benefits.
Some employersCountrywideEmployer-paid private or premium medical cover
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Employer-paid private or premium medical cover
Every employee already has National Health Insurance through a health provider funded by payroll contributions, so employer medical benefits in Uruguay top up that cover. Employers pay for a premium plan or private insurer, international cover for globally mobile staff, or extras such as mobile emergency services, with employer and employee shares of the premium set by company policy.
Provision differs widely by employer type. In Mercer's 2023 survey of 55 companies, 61.8% offered private medical cover through private insurers. In a 2026 survey of 100 Uruguayan companies across sectors and sizes, 11% listed prepaid medicine among the benefits they offer.
Some employersCountrywideEmployer dental insurance
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Employer dental insurance
Some employers add dental insurance, either within a premium medical plan or as separate cover, since basic National Health Insurance offers limited dental care. In a 2026 survey of 100 Uruguayan companies, 8% listed dental insurance among their benefits.
Some employersCountrywideMental health support and employee assistance
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Mental health support and employee assistance
A growing number of employers fund mental health support: psychological counselling, workshops, employee assistance programmes (confidential counselling lines) and days off for burnout. In a 2025 Uruguayan survey, 27% of companies addressed mental health with concrete actions such as counselling, workshops or recovery days, and 14% had digital disconnection policies.
Some employersCountrywideWellbeing activities and allowances
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Wellbeing activities and allowances
Some employers run wellbeing programmes such as fitness activities, health days or wellness platforms, and some fund a monthly wellbeing allowance. In a 2025 Uruguayan survey, 47% of companies offered wellbeing activities and 41% offered retail discounts.
Pensions and retirement in Uruguay
Saving for the future and protecting income. Offer one retirement plan across countries with an international pension plan.
StatutoryCountrywideCompulsory work-accident and occupational-disease insurance
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Compulsory work-accident and occupational-disease insurance
Every employer, whatever its size, must insure employees against work accidents and occupational diseases with the State Insurance Bank, Banco de Seguros del Estado (BSE), which holds a legal monopoly on this cover under Laws 16.074 and 16.426. The employer pays the premium, which the insurer sets according to the activity's risk. Coverage applies equally to teleworkers.
An injured employee receives medical care from the insurer and, from the fourth day of absence, a daily indemnity of two-thirds of the wage earned at the time of the accident until recovery. The Social Security Bank, Banco de Previsión Social (BPS), tops this up by 3.33% so the employee receives 70%. Permanent incapacity of 10% to 20% can be compensated with a lump sum of 36 times the monthly earnings loss; above 20% the insurer pays a lifelong monthly pension, adjusted at least once a year. Survivors receive pensions: 50% of annual salary to a spouse or partner (two-thirds if they are the only beneficiary) and 20% to 55% for dependent children.
The insurer pays even if the employer failed to insure, then pursues the employer, and an uninsured employer loses the liability protection insurance provides. Accidents must be reported within 72 hours in Montevideo and five days elsewhere. Dismissing an employee while on work-accident cover, or not reinstating them, costs three times the standard dismissal indemnity; dismissal within 180 days of return costs the standard indemnity plus wages for the rest of that period.
StatutoryCountrywideUnemployment benefit after dismissal
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Unemployment benefit after dismissal
An employee who loses their job involuntarily, through dismissal or the end of a contract, can claim an unemployment benefit from the Social Security Bank, Banco de Previsión Social (BPS), for up to six months, or 12 months if aged 50 or over. Monthly-paid employees qualify after at least 180 days on the payroll in the previous 12 months; daily-paid employees also need 150 days worked. Dismissal for disciplinary reasons disqualifies.
The benefit is a falling percentage of average nominal monthly earnings over the previous six months: 66% in month one, 57% in month two, 50% in month three, 45% in month four, 42% in month five and 40% in month six. Each month has a cap, from UYU 93,155 in month one to UYU 50,802 in month six in 2026. A 20% supplement applies when the claimant supports a spouse, partner, children or other dependants with little income of their own. Recipients keep National Health Insurance cover and can train through the National Institute of Employment and Vocational Training. The claim must be filed within 30 days of leaving the job. The scheme is funded through general social security contributions; there is no separate unemployment contribution.
StatutoryCountrywideStatutory dismissal indemnity
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Statutory dismissal indemnity
An employer can dismiss an employee without giving a reason, but must pay a statutory dismissal indemnity (indemnización por despido) unless it proves serious misconduct (notoria mala conducta). A monthly-paid employee receives one month's total pay for each year or part-year of service, capped at six months' pay. Total pay includes all salary-type earnings such as regular bonuses and commissions. There is no minimum service requirement for monthly-paid staff.
Daily-paid employees receive 25 days' wages for each year in which they worked 240 days (two days' wages for every 25 days worked in shorter years), capped at 150 days' wages, and only after working at least 100 days. Amounts above the legal indemnity are subject to personal income tax. The indemnity and other final payments are due within 10 days of termination.
Special protections raise the cost: dismissal while on sickness benefit or within 30 days of return costs double; while on work-accident cover, triple; during pregnancy or up to six months after maternity leave, the standard indemnity plus six months' salary; and within 30 days of returning from paternity or adoption leave, the standard indemnity plus three months' salary, unless the employer proves serious misconduct or that the dismissal is unrelated. No indemnity is owed when a genuine fixed-term contract expires or during an agreed probation period.
Some employersCountrywideGroup life insurance
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Group life insurance
Some employers provide group life insurance paying a lump sum to beneficiaries if an employee dies, typically a multiple of annual salary. In Mercer's 2023 survey of 55 companies, 54.5% offered collective life insurance; in a broader 2026 survey of 100 Uruguayan companies, 12% listed additional life insurance.
Uncommon employer additionCountrywideEmployer supplementary pension or savings plan
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Employer supplementary pension or savings plan
Employer-sponsored retirement savings beyond the compulsory system are rare in Uruguay, where employees already save through individual accounts with private pension fund managers as part of the statutory system. In Mercer's 2023 survey of 55 companies, 81.8% offered no savings benefit at all; 5.5% offered a pension plan or trust in Uruguay or abroad and 7.3% life and retirement insurance.
Uncommon employer additionCountrywideEmployee loans and financial wellbeing
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Employee loans and financial wellbeing
A small share of employers offer loans to employees or financial wellbeing programmes. In a 2026 survey of 100 Uruguayan companies, 7% offered loans and 2% financial wellbeing programmes; in Mercer's 2023 survey, 63.6% of companies had no strategy for employees' financial wellbeing.
Paid leave and sick pay in Uruguay
The legal baseline and additional time away.
StatutoryCountrywideStatutory annual leave
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Statutory annual leave
Private-sector employees earn at least 20 days of paid annual leave for each year of work, taken in the following year. Saturdays count as leave days; Sundays and public holidays do not, and leave cannot start on a weekly rest day. Employees with less than a full year earn leave in proportion to time worked up to 31 December.
Seniority adds days: one extra day on completing five years with the employer and one more every four years after that (two days in year eight, three in year 12), with no upper limit. Leave is taken in one continuous period, though a collective agreement can split it into two periods with the shorter at least 10 days.
A monthly-paid employee receives 1/30 of monthly salary per leave day; daily-paid employees receive their daily wage before leave begins, and variable earners an updated average of the previous year. Leave cannot be waived or exchanged for cash during employment; untaken leave is paid in the final settlement. Proven illness of up to 30 days a year does not reduce the entitlement.
Source: Régimen de licencia
StatutoryCountrywideSickness benefit and sick leave
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Sickness benefit and sick leave
An employee certified unfit to work by their health provider receives a sickness benefit from the Social Security Bank, Banco de Previsión Social (BPS), from the fourth day of certification, or from the first day if hospitalised at a clinic or at home. The first three days are not covered by the benefit and are unpaid unless a collective agreement, wage-council decision or the employment contract provides pay.
The benefit is 70% of average taxable earnings over the 180 days before the month of illness, excluding the 13th-month bonus, capped at UYU 67,754 a month in 2026, plus the proportional 13th-month share. It can last up to one year, with a further year of extension for the same condition. Monthly-paid employees need three months of work in the previous year to qualify; daily-paid employees need 75 days. The employee must tell the employer they are certified; the provider files the claim.
An employee who falls ill during annual leave suspends the leave. Dismissal while on sickness benefit, or within 30 days of returning, costs double the dismissal indemnity unless it is unrelated to the illness or for serious misconduct.
StatutoryCountrywideHalf-day moving leave in the software sector
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Half-day moving leave in the software sector
Employees of software companies covered by the wage council for the information technology subgroup (Group 19, subgroup 22) can take half a paid day off to move home. Wage councils (Consejos de Salarios) are the tripartite bodies that set binding sector pay and conditions. The employee gives seven days' notice and proves the change of address within seven days, for example with a utility or internet bill. A company policy that is equal or better applies instead and is not added on top.
StatutoryCountrywideMarriage, bereavement and other special paid leave
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Marriage, bereavement and other special paid leave
Private-sector employees have several short paid leaves set by law. Marriage leave is three days, one of them the wedding day, with at least 30 days' notice and proof within 30 days afterwards. Bereavement leave is three working days on the death of a parent, child, spouse, partner, adoptive parent or child, or sibling, with proof within 30 days.
Employees also receive one paid day to donate blood, and female employees one paid day a year for a smear test, mammogram or other screening recommended by the Ministry of Public Health. Parents of a child with a disability receive up to 10 paid days a year for the child's medical check-ups, with 48 hours' notice. Employees caring for a family member with a disability or terminal illness receive a special annual leave of 96 hours, of which the employer pays 64. Wage-council decisions and collective agreements can add leave; for example, the general commerce agreement for 2025 to 2027 grants two paid days a year to care for a hospitalised or sick child under 18.
StatutoryCountrywideStudy leave
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Study leave
Employees with more than six months' service who are studying receive paid study leave each year under Law 18.458: at least six days for those working up to 36 hours a week, nine days for more than 36 and under 48 hours, and 12 days for 48 hours. Leave is taken in blocks of up to three days that include the exam day. Training courses set by collective agreements or wage councils also qualify.
Source: Régimen de licencia
Some employersCountrywideExtra annual leave beyond the legal minimum
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Extra annual leave beyond the legal minimum
Some employers add paid vacation days beyond the statutory 20 days and seniority days, and some offer summer working hours. In Mercer's 2023 survey of 55 companies, 47.3% gave extra vacation days and 38.2% offered summer hours. Wage-council decisions can also add leave in particular sectors.
Maternity, paternity, and parental leave in Uruguay
Leave, pay and support through life’s changes.
StatutoryCountrywideMaternity leave and benefit
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Maternity leave and benefit
A pregnant employee takes 14 weeks (98 days) of maternity leave: six weeks before the expected birth and eight weeks after it. The leave is compulsory and cannot be waived. With medical authorisation the start can be postponed, but the employee always keeps at least eight weeks after birth and 14 weeks in total. If the baby arrives late, the post-birth period still runs in full. Leave extends to up to 18 weeks for multiple births, babies weighing 1.5 kg or less, births at 33 weeks or earlier, or complex cases.
Instead of salary, the Social Security Bank, Banco de Previsión Social (BPS), pays a maternity benefit of 100% of average pay over the previous six months, plus the proportional share of leave pay, 13th-month bonus and vacation pay earned during the leave. There is no ceiling and the employer pays nothing. The health provider files the claim from week 32 of pregnancy. The benefit is unaffected if employment ends during the leave.
Dismissal during pregnancy or up to six months after maternity leave entitles the employee to the normal dismissal indemnity plus a special indemnity of six months' salary. After the leave, either parent can move to half-time work until the child is six months old with a social security subsidy.
StatutoryCountrywidePaternity leave and benefit
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Paternity leave and benefit
For births from 1 January 2026, a father or non-birth parent who is an employee takes 20 consecutive days of paternity leave starting on the day of birth. The employer pays the first three days at normal pay; the Social Security Bank, Banco de Previsión Social (BPS), pays the next 17 days as a paternity benefit of 100% of average pay over the previous six months, plus proportional leave pay, 13th-month bonus and vacation pay. The leave is compulsory and cannot be waived or exchanged for money.
In multiple births, low birth weight (1.5 kg or less), premature or medically complex births, the benefit can extend to 30 consecutive days. The employee must give the employer written notice of the expected birth date at least two weeks in advance and provide a medical or birth certificate. A parent registered as a defaulting child-support debtor cannot claim the benefit.
An employee cannot be dismissed until 30 days after returning; dismissal in that period costs the normal dismissal indemnity plus three months' salary, unless the employer proves serious misconduct or that the dismissal is unrelated to the leave. Self-employed parents receive 20 days paid by the Social Security Bank.
StatutoryCountrywideHalf-time childcare subsidy and adoption leave
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Half-time childcare subsidy and adoption leave
After maternity leave ends and until the child is six months old (nine months after complex births), either parent can reduce their working time to half their usual hours, and no more than four hours a day, with a childcare subsidy from the Social Security Bank, Banco de Previsión Social (BPS). Parents may alternate but not both use it at the same time; the father qualifies when the mother received maternity benefit and is working or on sickness benefit. The employer pays for hours worked; the subsidy equals 50% of the daily rate used for the maternity or paternity benefit. A breastfeeding mother is also entitled to two half-hour breaks a day on an eight-hour shift, which can be combined into one hour.
An employee who receives a child for adoption takes 42 days (six weeks) of adoption leave from the day the child arrives, paid by the Social Security Bank at 100% of average pay over the previous six months plus proportional leave pay, 13th-month bonus and vacation pay. Two adoptive parents can be off together for the first 10 working days and share the remainder. Leave must be claimed within 30 days. One parent can then work half-time for six months, paid at half the adoption-leave rate.
StatutoryCountrywideSchool-supplies voucher in the software sector
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School-supplies voucher in the software sector
Software companies covered by the wage council for the information technology subgroup (Group 19, subgroup 22) must give a school-supplies voucher once a year to employees paid the minimum for their category who have children aged 4 to 12 enrolled at school. Wage councils (Consejos de Salarios) are the tripartite bodies that set binding minimum pay and conditions by sector. The voucher is worth 0.75 times the benefits and contributions base, Base de Prestaciones y Contribuciones (BPC), about UYU 5,148 in 2026, is paid with February salary and requires proof of enrolment.
Some employersCountrywideEmployer-paid extra maternity leave
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Employer-paid extra maternity leave
Some employers extend maternity leave beyond the statutory 14 weeks with additional paid days. In Mercer's 2023 survey of 55 companies, 54.5% offered additional maternity leave days.
Some employersCountrywideEmployer-paid extra paternity leave
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Employer-paid extra paternity leave
Some employers add paid days to the statutory 20-day paternity leave. In Mercer's 2023 survey of 55 companies, 58.2% offered additional paternity leave days; the survey predates the 2026 extension of statutory leave from 13 to 20 days for employees.
Public holidays in Uruguay
Plan around the right calendar for the right location. Track benefits, eligibility, and renewals by country in Benefits Administration.
Uruguay’s 2026 national calendar identifies five paid public holidays. These days are paid under special rules and are distinct from statutory annual leave.
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Uruguay has five paid public holidays under Law 12.590: New Year's Day, Workers' Day, Constitution Day, the Declaration of Independence and Christmas. On these days employees receive normal pay without working; anyone who works is paid double (a monthly-paid employee receives an extra 1/30 of monthly salary). They are not moved when they fall on a weekend.
The other national holidays, including Carnival and Tourism Week (Holy Week), are working holidays: businesses may open, monthly-paid employees keep their salary whether or not they work, and daily-paid employees are paid only for days worked, at the normal rate. Under the holiday-moving law (Laws 16.805 and 17.414), the Landing of the Thirty-Three Patriots, the Battle of Las Piedras and the Day of Cultural Diversity move to the previous Monday when they fall on a Tuesday or Wednesday and to the following Monday when they fall on a Thursday or Friday; all other holidays are observed on their date. Some wage-council decisions add sector holidays, such as the construction industry's day on the third Monday of October. Public holidays do not count against annual leave.
Uruguay has five paid public holidays under Law 12.590: New Year's Day, Workers' Day, Constitution Day, the Declaration of Independence and Christmas. On these days employees receive normal pay without working; anyone who works is paid double (a monthly-paid employee receives an extra 1/30 of monthly salary). They are not moved when they fall on a weekend.
The other national holidays, including Carnival and Tourism Week (Holy Week), are working holidays: businesses may open, monthly-paid employees keep their salary whether or not they work, and daily-paid employees are paid only for days worked, at the normal rate. Under the holiday-moving law (Laws 16.805 and 17.414), the Landing of the Thirty-Three Patriots, the Battle of Las Piedras and the Day of Cultural Diversity move to the previous Monday when they fall on a Tuesday or Wednesday and to the following Monday when they fall on a Thursday or Friday; all other holidays are observed on their date. Some wage-council decisions add sector holidays, such as the construction industry's day on the third Monday of October. Public holidays do not count against annual leave.
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Ask with a free account ↗Pay, bonuses, and rewards in Uruguay
Required payments and employer-designed incentives. Add flexible perks with Flex Rewards.
StatutoryCountrywide13th-month bonus (aguinaldo)
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13th-month bonus (aguinaldo)
Every private-sector employee, including part-time and fixed-term staff, receives an annual supplementary salary (aguinaldo) under Law 12.840. It equals one-twelfth of all cash remuneration earned in the 12 months from 1 December to 30 November: salary, overtime, commissions, bonuses, paid holidays and incentives count; meal vouchers and payments in kind do not.
Under the instalment decrees issued each year, it is paid in two halves. The first covers earnings from 1 December to 31 May and is paid during June (by 30 June). The second covers 1 June to 30 November and is due before 20 December. For a steady monthly salary of UYU 60,000, each half is UYU 30,000 gross. Employee social security contributions apply; personal income tax is collected through a 6% uplift to the monthly tax base during the year rather than at payment. Any unpaid proportional amount is paid in the final settlement.
StatutoryCountrywideVacation pay (salario vacacional)
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Vacation pay (salario vacacional)
Before starting annual leave, every private-sector employee receives vacation pay (salario vacacional) under Law 16.101, in addition to normal pay for the leave days. It equals 100% of the employee's net leave pay: the leave wage for the days taken after deducting the employee's social security contributions and income tax. It is paid in proportion to the leave days to be taken, so an employee taking 10 of 20 days receives half. Wage-council decisions or collective agreements can set a more generous formula. It is a holiday supplement, not a 14th-month salary.
Source: Salario vacacional, Régimen de licencia
Common employer additionCountrywideRecognition gifts for special dates
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Recognition gifts for special dates
Recognising employees on special dates is the most widespread benefit practice among Uruguayan companies. In a 2026 survey of 100 companies across sectors and sizes, 63.9% included recognition for occasions such as birthdays, work anniversaries and year-end celebrations. Companies typically spend between UYU 600 and UYU 3,000 per gift or experience on occasions such as birthdays, the return to school and family celebrations, according to the 2025 edition of the same survey.
Employer additionCountrywidePerformance bonuses and variable pay
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Performance bonuses and variable pay
Beyond the compulsory 13th-month bonus, employers can pay discretionary performance bonuses or commissions. Bonuses that are paid regularly form part of total pay for the 13th-month bonus, vacation pay and the dismissal indemnity, and are subject to social security contributions and income tax. Wage-council increases do not apply to variable components such as commissions in the commerce agreement. Variable pay is used in technology and sales roles, but its prevalence and size in Uruguay are not measured.
Flexible work and everyday life in Uruguay
Flexibility, learning and day-to-day support.
StatutoryCountrywideTelework law rights
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Telework law rights
Law 19.978 governs telework, meaning work done wholly or partly away from the employer's premises using information technology. Telework must be voluntary and agreed in writing in the contract or an annex. Moving permanently between office and remote work needs written agreement; when telework started after a period on site, either party can reverse it within 90 days with seven days' notice.
The parties agree the workplace, which can be the employee's home or several places. Total hours cannot exceed the sector's legal weekly maximum; teleworkers can organise their own schedule, and extra hours on one day are offset within the week rather than paid as overtime, but hours beyond the weekly limit carry a 100% premium. Teleworkers have a right to disconnect and to at least eight consecutive hours without contact between working days.
The parties agree who provides equipment; if they do not, the employer must provide and maintain the equipment, supplies and services needed. Equipment provided is not salary or taxable income. Health and safety duties and work-accident insurance apply as for on-site staff.
Common employer additionCountrywideHybrid and remote working arrangements
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Hybrid and remote working arrangements
Hybrid work is the predominant model among Uruguayan companies. In a 2026 survey of 100 companies across sectors and sizes, 59% worked hybrid, 31% fully on site and 10% fully remote; among hybrid companies, 70% let employees choose their office days, and 40% of all companies offered flexible hours. Only 14% had a digital disconnection policy in 2025, although teleworkers have a legal right to disconnect. Telework must be agreed in writing, and absent agreement the employer provides the equipment; home-office allowances are set by company policy.
Some employersCountrywideMeal support and food vouchers
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Meal support and food vouchers
Employers help with meals through food vouchers or cards, lunch allowances or on-site canteens. These benefits attract only the employer's 7.5% pension contribution rather than full payroll contributions, which makes them tax-efficient. In a 2025 Uruguayan survey, 38% of companies helped with lunch; in a 2026 survey of 100 companies, 20% offered an on-site canteen.
Some employersCountrywideTransport support
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Transport support
Employers contribute to commuting costs through transport allowances, bus fare support or company transport. Like meal benefits, transport benefits attract only the employer's 7.5% pension contribution. In a 2025 Uruguayan survey, 45% of companies helped with transport; in a 2026 survey of 100 companies, 10% listed transport support among their main benefits.
Some employersCountrywideEducation and training support
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Education and training support
Employers support learning through tuition assistance, courses and language training, sometimes extended to employees' children. In Mercer's 2023 survey of 55 companies, 52.7% offered educational assistance; in a 2026 survey of 100 Uruguayan companies, 16% listed education support for employees or their children. Statutory study leave of six to 12 days a year applies separately.
Some employersCountrywideFlexible benefit budgets
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Flexible benefit budgets
Some employers give staff a budget to choose benefits that suit them. In a 2026 survey of 100 Uruguayan companies, 29% had implemented a flexible benefits model, against 71% with a fixed package; in Mercer's 2023 survey, 21.8% had a flexible model with an allowance and menu of options.
Hiring employees in Uruguay: what affects benefits
Employment context that affects the benefit package.
StatutoryCountrywideNational minimum wage
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National minimum wage
The national minimum wage is UYU 25,383 a month from 1 July 2026, up from UYU 24,572 set on 1 January 2026 by Decree 319/025 (a 7.54% rise over the year). The daily equivalent is the monthly amount divided by 25 (about UYU 1,015) and the hourly equivalent divided by 200 (about UYU 127).
The national figure is only a floor. Most employees are covered by sector minimums set by wage councils (Consejos de Salarios), the tripartite bodies of government, employers and unions that fix minimum pay by job category for each industry group and adjust wages every six months. Sector minimums are usually well above the national minimum; in software, for example, a junior analyst's minimum was UYU 57,177 a month for 44 weekly hours from July 2025. The national minimum is revised each January.
StatutoryCountrywideSoftware-sector minimum wages
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Software-sector minimum wages
Companies that develop software for sale and provide related services are covered nationally by the wage council for Group 19, subgroup 22 (Informática). Wage councils (Consejos de Salarios) are the tripartite bodies that set binding minimum pay by job category. The agreement for 1 July 2025 to 30 June 2027 set these monthly minimums for 44 hours a week from 1 July 2025: technical apprentice UYU 35,811, junior technician UYU 52,424, help desk UYU 52,424, junior analyst UYU 57,177, senior analyst UYU 62,270, administrative trainee UYU 32,923 and administrative employee UYU 42,547.
Minimums and salaries rise every six months by band: in January 2026 by 3.6% (up to UYU 35,704, updated for core inflation) or 3.66% (up to UYU 109,000), in July 2026 by 2.8% or 2.26%, and in January 2027 by 3.5% or 3.56%. Salaries above UYU 109,000 receive the top-band rate (2.9%, 1.7% and 2.7%) only on the first UYU 109,000; the excess is outside the agreement. Inflation correctives may apply in July 2026 and July 2027. Apprentices may stay in that category for up to 24 months, junior technicians up to three years.
StatutoryCountrywideWorking hours and overtime
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Working hours and overtime
The legal working day is eight hours. The weekly maximum is 48 hours over six days in industry and 44 hours in commerce and most services; wage councils and contracts often set fewer, and software-sector minimum wages are set for 44 hours. Hours beyond the legal or agreed limit are overtime, which is voluntary and capped at eight hours a week unless the labour ministry authorises more.
Overtime on a working day carries a 100% premium (double pay); overtime on a weekly rest day or public holiday carries a 150% premium (two and a half times pay). Overtime must be recorded in the official work register, and the annual average of overtime counts toward leave pay. Shift teams can exceed eight hours a day if the average over three weeks stays within the limits. Teleworkers organise their own hours within the weekly maximum.
StatutoryCountrywideProbation period
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Probation period
Uruguayan statute does not regulate probation. Employers and employees can agree a trial period in the written contract, accepted by labour courts for up to 90 days (three months, the usual practice; some wage-council decisions set their own rules). During an agreed probation the employer can end the relationship without paying the dismissal indemnity. If no probation was agreed in writing, the employment is permanent from the first day and the indemnity applies to any dismissal.
StatutoryCountrywideTermination, notice and final pay
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Termination, notice and final pay
Uruguay has no statutory notice period: unless the contract requires it, an employer can dismiss immediately and an employee can resign without notice. Dismissal needs no stated reason or formal procedure, though written communication is advisable. The cost of dismissal is the statutory dismissal indemnity (one month's total pay per year or part-year of service, capped at six months), which is not owed if the employer proves serious misconduct.
Final pay is due within 10 days and includes salary to the leaving date, untaken annual leave, vacation pay, and the proportional 13th-month bonus. The employer must deregister the employee with the Social Security Bank, Banco de Previsión Social (BPS), which determines access to unemployment benefit. Dismissals linked to union activity are void, and special indemnities apply after illness, work accidents, pregnancy and family leave.
StatutoryCountrywideEmployee income tax on salaries
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Employee income tax on salaries
Employers withhold personal income tax (IRPF) from salaries monthly. Bands are set in multiples of the benefits and contributions base, Base de Prestaciones y Contribuciones (BPC), worth UYU 6,864 in 2026. Monthly income up to 7 BPC (UYU 48,048) is tax-free; then 10% to 10 BPC (UYU 68,640), 15% to 15 BPC (UYU 102,960), 24% to 30 BPC (UYU 205,920), 25% to 50 BPC (UYU 343,200), 27% to 75 BPC (UYU 514,800), 31% to 115 BPC (UYU 789,360) and 36% above.
Tax is reduced by a credit on deductible items: employee social security contributions, an allowance for each dependent child and other items. The credit rate is 14% of deductions when nominal income is up to 15 BPC a month and 8% above. The 13th-month bonus and vacation pay are taxed through an annual adjustment. Couples can opt for joint family-unit taxation.
StatutoryCountrywideEmployer payroll cost components
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Employer payroll cost components
On top of gross salary, an employer pays social security contributions of 12.625%: 7.5% for pensions, 5% to the National Health Fund (FONASA), 0.1% to the Labour Retraining Fund and 0.025% to the Labour Credit Guarantee Fund, collected monthly by the Social Security Bank, Banco de Previsión Social (BPS). The pension contribution stops at a monthly salary of UYU 288,836 in 2026 for employees in the mixed or common pension system. The employer also pays the work-accident premium to the State Insurance Bank, which depends on the activity's risk.
Annual statutory costs add to this: the 13th-month bonus (one-twelfth of yearly earnings), vacation pay before leave, and paid holidays. Employers commonly reserve for the dismissal indemnity. Personal income tax and employee contributions are withheld by the employer and remitted monthly.
StatutoryCountrywideTax treatment of employee benefits
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Tax treatment of employee benefits
Meal, medical, insurance and transport benefits paid by an employer are subject only to the employer's 7.5% pension contribution under Article 167 of Law 16.713; they do not attract the employee's contributions or health and labour-fund contributions. Equipment, supplies and services an employer provides for telework are not salary or taxable income. The 13th-month bonus and vacation pay are subject to employee social security contributions and income tax, collected through the monthly withholding and annual adjustment.
StatutoryCountrywideWage councils and collective bargaining
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Wage councils and collective bargaining
Pay and conditions in most of Uruguay's private sector are set by wage councils (Consejos de Salarios): tripartite bodies of government, employer and union delegates for each industry group and subgroup. Their decisions fix minimum wages by job category, wage increases and other conditions, and bind every employer in the subgroup, whether or not it belongs to an employer association. Unions are strong; the single national trade union confederation is the Plenario Intersindical de Trabajadores–Convención Nacional de Trabajadores.
The 11th bargaining round, opened in July 2025, covers about 250 bargaining tables and some 990,000 workers. Agreements generally run two years with increases every six months by salary band, inflation correctives for lower bands and a peace clause. In the software subgroup, the 2025 to 2027 agreement between the Uruguayan Chamber of Information Technologies and the commerce and services union federation adjusts salaries up to UYU 109,000 in full but leaves pay above that level outside the agreement, gives a school-supplies voucher and half-day moving leave, and commits the parties to discuss the impact of artificial intelligence. The general commerce agreement adds two paid days a year to care for a sick child.
Contractor benefits in Uruguay
Independent contractors manage their own tax, contribution and commercial arrangements. Employee payroll contributions, paid leave and the statutory annual supplementary salary do not automatically apply to a client contract.
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