HR Software for Uruguay

Leave Policy

Maternity Leave

Pregnant employees are entitled to 14 weeks of paid vacation. Forty-two days must be taken before the birth of the child, but can be postponed until two weeks before the birth if a medical certificate is presented and there has been no absence for medical reasons during the pregnancy. The employee receives 100% of her average salary for the last six months and social security is responsible for this salary.

You can use the leave module in IceHrm to manage maternity leave in Uruguay.

Paternity Leave

Employees are entitled to 13 days of paid paternity leave. The employee receives 100% of his average salary for the last 6 months. The first 3 days are fully covered by the employer. From the 4th to the 13th day, the holiday is covered by the state health insurance (BPS). The vacation must be taken from the day the child is born.

Parental Leave

Employees have the right to work 50% of the week in the first six months after birth. Both parents can take parental leave. Social Security pays 100% of the average salary during this period. Parental leave cannot be extended.

Sick Leave

Employees are entitled to unlimited paid sick leave. The first 3 days are unpaid and are considered a waiting period. After the 3rd day, 70% of the vacation is paid for by social security.

Pay & Tax

Minimum Wage Requirements

The minimum wage in Uruguay is complex. The minimum wage varies depending on the worker’s sector. For IceHrm software activities, the minimum wage is UYU 36,180 per month.

Individual Income Tax

Personal income tax ranges from 0% to 36%. Income tax is calculated according to a progressive rate. Several additional factors can affect overall rates, such as: the household status and the number of children.

Gross Annual IncomeTax Rate (%)
Up to UYU 39.6200%
From UYU 39.620 up to 56.60010%
From UYU 56.600 up to 84.90015%
From UYU 84.900 up to 169.80024%
From UYU 169.800 up to 283.00025%
From UYU 283.000 up to 424.50027%
From UYU 424.500 up to 650.90031%
Starting from UYU 650.90036%

Payroll Cost

The cost to the employer is generally estimated at 15.85% of the employee’s salary:

Monthly charges

  • Social Security (BPS) – 7.5%*
  • Health insurance (FONASA) – 5%
  • Additional Fund (FRL) – 0.1%
  • Guarantee Fund (FGL) – 0.025%
  • Accident insurance – 3.23%

*up to a maximum salary of UYU 256,821.

Annual costs

  • 13th month salary – 1 month basic salary
  • 14th Monthly salary (holiday bonus) – a net daily rate from the previous year for each day of vacation taken

These costs are estimates and are for general information purposes only. To fully understand all associated costs and fees associated with the terms of an employment contract for this country, please contact our sales team for a quote.

Overtime Pay & Maximum Hours

The standard working hours are 8 hours per day and 40 hours per week. The normal working week lasts from Monday to Friday.

Termination

Termination Requirements

Dismissals must take into account complex rules and the regulations of the country in which an employee is employed. Off-boarding is always carried out by the employer with the main participants. It may include ad hoc fees as well as required or recommended steps for specific termination cases.

Terminations in Uruguay can be complex. In Uruguay, employers cannot terminate at their own discretion outside of the probationary period and the termination must be for just cause.

Proper terminations are:

  • Voluntary by the employee
  • By mutual agreement
  • Unilaterally by the employer due to:
    • Probation period
    • Objective reasons
    • Dismissal for disciplinary reasons
    • Performance due to unsuitability for the position
  • When the contract expires

Notice Period

The notice period is not mandatory and depends on what the two parties have agreed in the employment contract.

Severance for Employees

In Uruguay, all employees who are not dismissed for disciplinary violations during the probationary period or because of the termination of a fixed-term contract are entitled to severance pay. The severance payment amounts to one month’s salary per year of service up to 6 months’ basic salary.

In order to protect you from unforeseen financial risks arising from the termination of an employment relationship, IceHrm applies a severance pay provision in all employment contracts in this country. IceHrm has extensive expertise in managing litigation risk around the world and our severance provision calculation is based on prevailing common law or statutory requirements and best local practices. If your employee resigns or is not entitled to severance pay, you will receive a refund of any unused amounts.

Statutory Time Off

Paid Time Off

Both full-time and part-time employees are entitled to 20 days of paid time off (PTO) per year. PTO is credited monthly at 1.67 days per month.

Public Holidays

Public holidays in Uruguay are complex. There are a total of 15 national holidays in Uruguay. Only 5 of these holidays are mandatory paid days off.

National holidays include:

  • New Years Day (non-working)
  • Epiphany
  • Carnival
  • Carnival 2
  • Maundy Thursday
  • Good Friday
  • Landing of the Patriots
  • Labour Day (non-working)
  • Battle of Las Piedras Holiday
  • Birth of Artigas
  • Constitution Day (non-working)
  • Independence Day (non-working)
  • Day of the Race
  • All Souls’ Day
  • Christmas Day (non-working)

Onboarding

Onboarding

Onboarding takes 3 business days

Additional Info

Employment Contract Details

The contracts must be written in Spanish and can be bilingual. They must be in writing and signed by both parties.

A contract must contain:

  • Surname
  • Start date
  • Length of employment
  • Job descrption
  • Conditions for Termination

Probation Period

Probationary periods are not mandatory. The maximum duration of the probationary period is 90 days.