
Uruguay is a stable South American economy known for its high standard of living and progressive labor policies. Its labor market is governed by comprehensive employment laws that protect workers’ rights while promoting fair working conditions across a diverse range of industries.
Types: Employment contracts in Uruguay can be either indefinite (permanent) or fixed-term.
Conversion: Fixed-term contracts may convert to indefinite contracts if extended beyond the agreed period.
Duration: Probation periods are typically set for up to 3 months.
Notice: During probation, either party can terminate the contract with a notice period of about 7 days.
Standard Hours: The normal workweek usually consists of 44 hours.
Daily Hours: Daily working hours generally range between 8 and 9 hours.
Overtime: Overtime is allowed and must be paid at a premium rate, often 150% of the regular hourly wage.
Entitlement: Employees are entitled to at least 20 working days of paid vacation per year.
Accrual: Vacation is accrued on a pro-rata basis and may increase with seniority or as specified by collective agreements.
Benefits: Employees who are ill or injured are entitled to sick leave.
Compensation: Typically, full pay is provided for the first 3 days of sick leave, with a reduced rate (approximately 70–80% of the regular salary) for subsequent days, subject to the terms of the employment contract.
Certification: A medical certificate is required after the initial few days.
Payment Frequency: Salaries are usually paid monthly via bank transfer on the agreed date.
Minimum Wage: As of 2025, the national minimum wage was approximately UYU 22,751.22 per month.
Holidays: Uruguay observes around 13 national public holidays.
Paid Days Off: Public holidays are paid days off and are not counted as part of the annual leave entitlement.
Social Security: Employers contribute to social security, covering pensions, health, and unemployment insurance, at an approximate rate of 20–25% of the gross salary (actual rate may vary by sector).
Income Tax: Employees are subject to progressive income tax rates ranging from 0% to 36%, depending on income levels.
Social Contributions: Employees also contribute to social security at a rate of roughly 10–12% of their gross earnings.
Statutory Period: The notice period varies by length of service—for instance, shorter service (less than one year) may require 15 days’ notice, while longer service could require up to 30 days or more, as specified in the employment contract or collective agreement.
Termination: Termination procedures must follow statutory guidelines.
Severance: In cases of unfair dismissal or redundancy, employees are typically entitled to severance pay calculated at around one month’s salary per year of service, subject to legal limits.
Additional Benefits: Employees should also receive payment for any accrued but unused vacation and other statutory benefits upon termination.
International EOR (Employer of Record) and PEO (Professional Employer Organization) are services that enable businesses to compliantly hire, manage, and pay employees in foreign countries without the need for establishing a legal entity. EOR acts as the legal employer while PEO co-employs workers, handling administrative tasks such as payroll, taxes, and benefits.
Acvian does not handle time record submissions directly. It is the client’s responsibility to track and submit employee work hours. However, Acvian can offer guidance and best practices to ensure efficient time tracking and compliance with local labor laws.
Employees can view their payroll details through the monthly payslips they receive and also via our Acvian platform. These payslips contain information on earnings, deductions, taxes, and net pay, giving employees a clear overview of their monthly payroll. Please note that in some countries, employers are restricted from viewing payslips due to data protection regulations, and only employees can share their payslips. For more details on these regulations, please contact our specialists.
Acvian addresses payroll disputes promptly, working closely with both the client and the employee to investigate and resolve any issues.
Yes, Acvian requires advanced monthly payments for salaries and service to ensure timely and accurate payroll processing.
Yes, Acvian can provide consultations regarding labor and tax legislation. Our team of experts is well-versed in local regulations and can offer guidance to help your business maintain compliance, reduce risk, and navigate the complexities of international employment and taxation laws.
Acvian provides a diverse range of benefits, including but not limited to:
We can customize and offer many kinds of benefits requested by the client, ensuring that your employees receive the support and perks that align with your company culture and local regulations.
Acvian can provide private health insurance options as part of its comprehensive employee benefits package.
The monthly/yearly costs for an ‘average’ package vary depending on the specific plan and location. See our estimated price packages here. Acvian’s team can provide detailed cost breakdowns based on your requirements.
While Acvian doesn’t directly provide entity set-up services, we can introduce you to local lawyers who specialize in this area to assist you with your needs. See also, when it's better to set the entity or use the EOR.
Offboarding is managed by Acvian in a structured and compliant manner. We coordinate with your business to ensure all necessary documentation, exit interviews, and final payments are completed. Acvian also ensures adherence to local labor laws and regulations, including providing any required notice periods and managing the termination process.
Businesses typically need EOR and PEO services when they:
Yes, Acvian is fully compliant with GDPR regulations. We collect and process personal data in accordance with the law, ensuring that data is used only for general, allowed purposes such as marketing and other legitimate business activities.
Acvian can supply EOR services in over 180 countries, encompassing almost all European nations, the United States, and Canada, providing extensive coverage to support your business’s global expansion and workforce management needs. See our coverage here.
Under EOR, Acvian manages the payroll process by:
Explore the details here.
Yes, Acvian provides comprehensive support for expatriate EOR workers, including:
Explore in details here.
Expats support from Acvian encompasses a range of services designed to facilitate a smooth transition for employees working abroad. Key aspects include:
After onboarding, Acvian maintains an ongoing relationship with your business and employees, ensuring smooth payroll processing, managing tax and regulatory compliance, handling benefits administration, and providing support for any changes or issues that may arise in the employment lifecycle. This allows you to focus on your core business operations while Acvian manages your international workforce.
The onboarding process typically takes between 2 to 4 weeks, depending on the country and complexity of the employee’s situation. However, Acvian strives to expedite this process, ensuring a smooth and efficient transition for your personnel. See our story of the urgent employment project.
Yes, Acvian provides in-country or regional support for employee inquiries and assistance requests. We have dedicated managers in the countries where we support your employees, ensuring prompt and knowledgeable assistance tailored to local regulations and practices.
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