Employer Payroll Tax
Employee Payroll Taxes
Employee Income Tax
Minimum wage is 17,930 Uruguan Pesos (Approx. $420 USD) monthly.
Salaries are paid monthly by the 5th day of the following month.
Aguinaldo (13th salary) is mandatory by law and paid in two instalments (June and December).
A normal workweek is 44 hours.
Employees who exceed 44 hours in a week are entitled to overtime pay at 200% of the regular salary.
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.
There are 12 public holidays.
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).
Female employees get six weeks before and eight weeks after the birth as maternity leave, paid by the Institute of Social Security.
Fathers receive 10 days of leave.
Employees have the right to terminate employees, but must provide a notice period as well as severance pay.
A notice of 1.5 weeks should be given.
Employees are entitled to severance payments which includes one months salary for every year employed up to 6 months of salary.
Common practice to have a probation period of up to 3 months.
VAT is 22% standard rate.