What date does the law specify salary must be paid in Uruguay?

Uruguayan law requires salaries to be paid in the following manner:

• Salaries paid on a monthly basis must be paid within the first 5 business days and never later than the 10th day of the following month.
• Salaries paid on a biweekly basis must be paid within 5 days of the end of the pay period.
• Salaries paid on a weekly basis must be paid at the end of the week.

How is salary calculated and what components does it consist of in Uruguay?

In Uruguay, salaries are calculated on a monthly basis. For labor purposes, all months are considered to have 30 days.

Is there a legal obligation to pay salaries in the same month in Uruguay?

No, there is no legal obligation to pay salaries in the same month in Uruguay. The law establishes that salaries must be paid within the first 5 working days and never after the first 10 calendar days of the following month.

How many salary payments are made per year in Uruguay?

In Uruguay, there are 13 salary payments made per year.

Is salary payment monthly and is payment standard at the end of the month in Uruguay?

In Uruguay, salary payment schedules can vary as follows:

• Monthly: Payment must be made by the fifth business day of the following month.
• Biweekly: Payment must be made by the fifth business day of the following fortnight.
• Weekly: Payment is made at the end of the week.

Should the employment agreement in Uruguay specify salary in monthly or annual amounts?

Our employment agreement template in Uruguay specifies salary in a monthly amount.

What tax and social security obligations do employees have in Uruguay?

In Uruguay, employers and employees have specific tax and social security obligations.

For Employers:

• Taxed income includes:
• Remuneration
• Travel expenses given as compensation
• Vacation pay
• Severance payments
• Profit-sharing payments
• Cash value of employer-provided benefits

For Employees:

• For Nonresidents: Employment income is taxed at a flat rate of 12%.
• For Residents: The income tax rate is progressive, ranging from 0% to 36%, depending on the annual income. Additionally, residents are subject to contributions for the following:
• Banco de Previsión Social (BPS)
• Fondo Nacional de Salud (FONASA)
• Fondo de Reconversión Laboral (FRL)

What are the details of the statutory bonuses and 13th/14th-month salary, including the local name and payment schedule?

In Uruguay, supported employees are entitled to a statutory annual bonus, locally referred to as the Aguinaldo. It is calculated as one-twelfth of the total compensation paid during the 12-month period ending December 1. The payment schedule for this bonus is divided into two installments:

• The first installment covers the period from December to May and must be paid before June 30.
• The second installment covers the period from June to November and must be paid within 10 days prior to December 24.

What are the details of the customary bonuses, including the 13th or 14th-month salary, and when are these payments typically made in Uruguay?

In Uruguay, employers may provide bonuses to employees as a way to address exchange rate fluctuations and the impact of inflation. These bonuses are generally disbursed on a monthly or quarterly basis. There is no mention of a customary 13th or 14th-month salary in the context provided.

What is the minimum wage information in Uruguay?

Effective January 1, 2025, the standard national minimum wage in Uruguay is UYU 23,604.