Overview

Capital
Monetvideo
Currency
Uruguayan Peso (UYU)
Date Format
dd/mm/yyyy

Taxes

Employer

Employer Payroll Tax

5%
Health Insurance
0.1%
Labor Re-conversion Fund
7.5%
Pension Fund
0.025%
Labour Credit Guarantee Fund
12.625% Total Employment Cost
Employee

Employee Payroll Taxes

15%
Pension Fund
3%-8%
Health Insurance
0.1%
Labor Re-conversion Fund
18.1-23.1%

Employee Income Tax

0%
0-379,596
10.0%
379,596 - 542,280
15%
542,280 - 813,420
24%
813,420 - 1,626,840
25%
1,626,840 - 2,711,400
27%
2,711,400 - 4,067,100
31%
4,067,100 - 6,236,220
36%
6,236,220 +
Employer Taxes
3 HIGHEST
3 LOWEST
Brazil
China
Slovakia
Uruguay
South Africa
Georgia
Macedonia
82.39%
41.12%
37.2%
12.625%
2%
2%
0%
Employee taxes
3 HIGHEST
3 LOWEST
Romania
Macedonia
Netherlands
Uruguay
Georgia
Belarus
Ukraine
45%
28%
27.65%
23.1%
2%
1%
0%

Minimum Wage

General

Minimum wage is 17,930 Uruguan Pesos (Approx. $420 USD) monthly.

Minimum wage (per month)
$4000
$2663
$2491
$420
$47
$36.80
$2.33
Geneva
Luxembourg
Australia
Uruguay
Malawi
Angola
Venezuela
3 HIGHEST
3 LOWEST

Payroll

Payroll Cycle

Salaries are paid monthly by the 5th day of the following month.

13th Salary

Aguinaldo (13th salary) is mandatory by law and paid in two instalments (June and December).

Working Hours

General

A normal workweek is 44 hours.

Overtime

Employees who exceed 44 hours in a week are entitled to overtime pay at 200% of the regular salary.

Leave

Paid Time Off

All workers have the right to 20 days’ annual leave. From the fifth year of work, an extra leave day is added, and then every four years another day is added, up to a maximum of 25 days.

The annual leave should be used in the year after which it was accrued. It may be divided into two periods, the shorter of which may not be less than 10 days.

In addition to the worker’s regular remuneration during leave, the worker is entitled to receive an additional amount called “vacation salary” (technically “amount for the better enjoyment of the annual leave”), equal to 100% of the net vacation daily wage.

Vacation days
Public holidays
3 HIGHEST
3 LOWEST
Brazil
Peru
Albania
Uruguay
Michigan
China
Federal
30
13
43
30
12
42
28
14
42
20
12
32
2
11
13
5
7
12
10
10
Public Holidays

There are 12 public holidays.

Sick Days

The first 3 days are paid in full by the employer and the fourth day onward is paid 70% by the institute of social security (BPS).

Maternity Leave

Female employees get six weeks before and eight weeks after the birth as maternity leave, paid by the Institute of Social Security.

PAID MATERNITY LEAVE (DAYS)
410
365
365
98
45
30
0
Bulgaria
Serbia
Albania
Uruguay
United Arab Emirates
Tunisia
Federal
3 HIGHEST
3 LOWEST
Paternity Leave

Fathers receive 10 days of leave.  

Termination

Termination Process

Employees have the right to terminate employees, but must provide a notice period as well as severance pay.

Notice Period

A notice of 1.5 weeks should be given.

Severance Pay

Employees are entitled to severance payments which includes one months salary for every year employed up to 6 months of salary.

Probation Period

Common practice to have a probation period of up to 3 months.

VAT

General

VAT is 22% standard rate.

Version History

January 1, 2021
Minimum wage: rose to 17,930 UYU per month.

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