EOR Service in Uruguay

Hire, Onboard and Pay Employees in Uruguay Quickly and Efficiently

Hiring in Uruguay at a glance

CURRENCY
Uruguayan Peso (UYU)
working hours
8 hours/ day
public/bank holidays
12 Days
capital
Montevideo
language
Spanish
date format
dd/mm/yyyy
remote workers
1.2M
tax year
1 January- 31 December
minimum hourly salary
No minimum wage
CURRENCY
Uruguayan Peso (UYU)
working hours
8 hours/ day
public/bank holidays
12 Days
capital
Montevideo
language
Spanish
date format
dd/mm/yyyy
tax year
1 January- 31 December
payroll frequency
Monthly
GDP
$71.18B (2022)

Employer of Record in Uruguay

Uruguay is a thriving country in Latin America, known for its strong democratic values, low corruption, peaceful environment, advanced e-governance, high Human Development Index, impressive GDP growth, innovation, and press freedom – leading in these aspects among neighboring nations. The primary industries driving exports are agriculture and textiles, while over 70% of the workforce is engaged in the service sector. Given its favorable political, institutional, and social conditions, Uruguay is recognized as an excellent choice for establishing new and innovative businesses. When it comes to managing a workforce, especially for international companies, considering an Employer of Record in Uruguay can provide a reliable solution for navigating the country's business landscape.

Why use Uruguay EOR?

Uruguay stands out in Latin America for being an egalitarian society and for its high income per capita, low level of inequality and poverty and the almost complete absence of extreme poverty. Uruguay generally welcomes foreign workers, while there may be quotas or restrictions on the number of foreign workers in specific industries. Using an Employer of Record (EOR) service in Uruguay can offer several advantages for companies looking to expand their operations there. An Employer of Record can handle various aspects of employment, compliance, and administrative tasks. EOR services can facilitate a faster market entry, allowing companies to start operations and hire employees without establishing a legal entity in Uruguay. Simplified employment compliance and risk mitigation are at the core of EOR services, allowing you to focus on your business’s core activities. EORs handle payroll processing, including salary disbursement, tax withholdings, and other payroll-related tasks. EORs can bridge language and cultural gaps, helping companies communicate effectively with local employees and navigate cultural nuances in business operations.

EOR Costs in Uruguay

Uruguay EOR services typically offer two pricing models: fixed and variable. Gloroots' Uruguay EOR adopts a transparent fixed fee, eliminating hidden charges and simplifying budget planning for employers. This contrasts with variable fee structures, which can complicate salary budgeting as costs increase with higher employee salaries. Choosing Gloroots ensures a straightforward and predictable approach to managing workforce expenses.

Key Metrics For Foreign Employers 

Exports are the main focus of Uruguay's economy. Exporting agricultural goods such as cattle, soybeans, or wood pulp is important to the nation's economy. Uruguay ranks No. 57 overall in the U.S. News Best Countries rankings, making it a great spot for businesses to enter.

Factors Global Ranking Interpretation
Rule of law 36 Indicates effectiveness of law enforcement
Labour-employer cooperation 87 Indicates positive labor-employee relationships
Reading Maths, and Science 51 Indicates average scores in OECD's survey of 15-year old students
University Ranking 47 Indicates average QS rankings
Labour productivity per employee 59 Indicates total output by the total labor input used to produce that output
Ease of finding skilled employees 45 Indicates findability of skilled talent
Workforce with tertiary education 52 Indicates % of workforce with PG degrees
Digital Skills n/a Indicates prevalence of advanced digital skills in the population

Source: The Global Talent Competitiveness Index 2023

Through the Gloroots’ Recrew platform, you can discover amazing talent in Uruguay.


Why work in Uruguay ?

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Grow your team in Uruguay

Grow your team in Uruguay seamlessly with Gloroots, your trusted ally in overcoming local employment complexities. Our customized solutions are designed to harmonize with your business goals, simplifying the hiring process. Leveraging our comprehensive Employer of Record (EOR) service, we expertly handle compliance, payroll, tax obligations, and benefits administration. With Gloroots at your side, you can focus on fostering your team and spearheading company growth in the vibrant Uruguayan market, ensuring that your operations align with local regulations.


Risks of misclassification

In Uruguay, misclassifying employees carries significant legal risks, jeopardizing essential protections. To proactively address this, businesses should consider a Professional Employer Organization (PEO) or Employer of Record (EOR) for precise classification, compliance, and benefits administration. Partnering with experts allows companies to concentrate on core operations while ensuring legal compliance and prioritizing the well-being of the workforce.

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Employing in Uruguay

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Tax

Tax and Social Security contribution:

Employer

Category Contribution Rate
Health Insurance 5%
Labor Re-conversion Fund 0%
Pension Fund 7.5%
Labour Credit Guarantee Fund 0.025%
Total Employment Cost 12.625%

Employee

Category Contribution Rate
Pension Fund 15%
Health Insurance 3%-8%
Labor Re-conversion Fund 0.1%
Total Employee Cost 18.10% – 23.10%

Employee Income tax

Rate Contribution
0% 0-475,440 UYU
10% 475,441 UYU to 679,200 UYU
15% 679,201 UYU to 1,018,800 UYU
24% 1,018,801 UYU to 2,037,600 UYU
25% 2,037,601 UYU to 3,396,000 UYU
27% 3,396,001 UYU to 5,094,000 UYU
31% 5,094,001 UYU to 7,810,800 UYU
36% 7,810,801 UYU and above

Separation

Termination 

Employers can end a fixed-term contract due to business needs, personal reasons, or worker misconduct. Termination mandates both notice and a written explanation. In cases of misconduct, a prior warning is necessary, allowing the employee an opportunity to clarify their actions. Every terminated employee is entitled to receive both a notice of termination and severance payment.

Severance Pay

Terminated employees are eligible for severance pay, calculated at the rate of one month's salary for each year of service, with a maximum limit of six months.

Notice Period

In Uruguay, the standard notice period for both the employee and employer is usually 1.5 weeks.

Probation period

In Uruguay, the standard probationary period typically spans up to three months.

Start Hiring in Uruguay today

When expanding globally, ensuring compliance poses unique challenges. Employers must navigate employment laws, adhere to payroll protocols, uphold DE&I standards, comply with GDPR and data protection regulations, and more. While establishing local entities and commencing hiring can be daunting, staying abreast of a dynamic compliance landscape is even more demanding.

Gloroots streamlines this process, offering a centralized platform to manage these tasks effortlessly. Our in-house experts provide comprehensive protection against cross-border employment and payroll compliance risks. We assist in crafting employment contracts, ensuring timely payments, and delivering compliant benefits, allowing you to concentrate solely on talent screening.

Our commitment is to provide a seamless global employment experience, alleviating stress for both you and your employees.

Connect with our experts today to launch your global recruitment initiative.

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Experience Seamless Hiring in Uruguay ?

Let us take care of all your employment needs. We guarantee easy onboarding & compliant workforce management in Uruguay .

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