Uruguayan Peso (UYU)
Spanish, Portunol, and Brazilero
Cost of Living
59.05 (US 69.92)
(US 69.92)
Time (UTC)
UTC - 3
Presidential Republic

Hire in Uruguay without an entity and fully compliant with local labor laws

Uruguay is known for its vibrant culture, abundant natural resources, and kind people. Latin America's most educated workforce enjoys stunning beaches, first-rate infrastructure, and a high standard of living.

Uruguay's land area is approximately 85% the size of Minnesota, making it the world's 91st-largest country.

Get to know Uruguay

Uruguay, located in the southern temperate zone, has a pleasant and consistent climate. The mixed terrain includes gently sloping plains to the south and an extension of Argentina's flat pampas in the west. The northern territory is a continuation of southern Brazil's lowlands and broad valleys.

The eclectic culture comes from a diverse population with a long history of creative and literary traditions. Uruguay ranks third on the continent in terms of the Human Development Index, GDP growth, innovation, and infrastructure. Foreign investments are increasing due to recent regulatory environment reform changes.

The World Bank classifies Uruguay as a high-income economy with the following trade agreements and alliances: 

  • CAN - Andean Community of Nations
  • Mercosur - Mercado Común del Sur
  • CELAC - Community of Latin American and Caribbean States
  • G20 - Developing Nations
  • Latin Union
  • OAS - Organization of American States
  • UN - United Nations
  • USAN - Union of South American Nations
  • WTO - World Trade Organization

“Must know” if you’re hiring in Uruguay without an employer of record

Entity requirements
Mandatory hiring contracts & clauses
Different compliance risks for full-time vs. contractor employees
Mandatory probationary periods
Allowable working hours & overtime wage laws
Timecard and attendance records
Required employer payroll, labor insurance, and tax payments
Discrimination protection
Notices & termination regulations

Budgeting for Uruguay employees

Employee Classification–Full-time vs Contractor


  • Fixed salary
  • Standard work hours
  • Benefits and paid leave


  • Flexible working hours
  • Salary depends on task or project
  • No benefits or paid leave

Employment Contracts

Employment contracts are governed by national laws, collective bargaining agreements, and international standards such as the International Labor Organization's Conventions. Written contracts are not required but should include the following:

  • Job title/position
  • Start date
  • Probation period
  • Duration
  • Hours of work
  • Compensation

Probation Period

Three months

Standard Working Hours & Overtime
  • Eight hours per day
  • 44 - 48 hours per week
  • Workday overtime = paid 200% of regular rate
  • Weekend or holiday overtime = paid 250% of regular rate

Payroll Frequency
  • Daily
  • Weekly
  • Monthly

Wages & Bonuses
  • Minimum monthly pay = $255
  • 13th month salary

USD equivalent median salaries based on Role:

  • Data Scientist: $31,007
  • Electrical Engineer: $14,204
  • Hardware Engineer: $21,406
  • IT Manager: $12,925
  • Mobile Developer: $19,995
  • Product Manager: $12,841
  • Project Manager: $21,371
  • QA Engineer: $19,122
  • Software Engineer: $32,838
  • System Administrator: $28,909
  • UX Designer: $32,855
  • Web Developer: $29,750

Payroll Taxes & Employer Contributions
  • 7.5% Public Pension
  • 0.025% Labor Credit Guarantee Fund
  • 0.1% Labor Reconversion Fund
  • 0.025% Labor Credit Guarantee Fund


Health Insurance 

  • 5% Employer Contribution
  • The National Integrated Health System governs every citizen's right to health protection through National Health Insurance

Paid leave


  • 12 weeks


  • Three days

Vacation/PTO days

  • Six months = 3 days
  • One year = seven days
  • Two years = ten days
  • Three years = 14 days
  • Five years = 15 days 
  • After 10 years = one additional day

Sick Days

  • First three days = 100% paid by employer
  • Four days onward = 70% paid by social security

Additional Leave

  • Marriage Leave = three days
  • Study Leave = six to 12 days
  • Bereavement Leave

Additional Benefits

  • Accident Insurance
  • Unemployment Insurance


Uruguay celebrates 12 national (public) holidays and multiple observances a year. 

The most important fixed date holidays are:

  • New Year Day (January 1)
  • Landing of the 33 patriots Day (April 19)
  • Labor Day (May 1)
  • Day of the Races (October 12)
  • Christmas Day (December 25)

Termination & Severance

Notice Period

  • One and a half weeks

Severance Pay

  • One month’s salary for every year

And a few fun facts about Uruguay…

  • The five-minute national anthem of Uruguay is the world's longest.
  • All of Uruguay's electricity comes from renewable sources.
  • There are more sheep than people in Uruguay.
  • Every house in the country has a unique name.
  • Uruguay is the smallest Spanish-speaking country in Latin America.

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