How to hire remote employees in

Uruguay

Found someone great in Uruguay and want to bring them onto the team? It’s a good thing you’re here. On this page, you’ll learn exactly what you need to know before making hires in Uruguay: Legal obligations, risks, and the easiest path to hiring great talent overseas.

Country snapshot

CURRENCY
Uruguayan Peso (UYU)
EMPLOYER TAXES
12.625%
PAYROLL FREQUENCY
Monthly
OFFICIAL LANGUAGE
Spanish

What to know before you hire in 

Uruguay

So you want to hire in Uruguay. That’s good news! But you should know, from the start, that hiring in Uruguay is different than hiring in your home country. There are different labor laws, different regulations, and different systems for hiring people. If you don’t do things right, you’ll be putting your company at the risk of fines—and risk losing the talent you brought onboard.

If you want to successfully hire in 

Uruguay

, you have two options:

Hire talent as contractors

Laws about hiring contractors are significantly more simple in 

Uruguay

. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Panther for.

Hire talent as employees

This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in 

Uruguay

 is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.

Why hire independent contractors in 

Uruguay

Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in 

Uruguay

.

It’s the fastest way to hire globally

Hiring employees takes months, at the minimum. When you hire with Panther’s locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.

It’s a lot cheaper

It costs just $0 to sign up for Panther, then $49 per month to hire your contractors with Panther. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.

It’s more flexible for you & your team

Hiring contractors in 

Uruguay

 means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.

It’s less risky than hiring employees

Hiring employees is a bigger commitment, and generally puts you at a bigger risk for legal fees. When you hire contractors overseas, your biggest risk is misclassification—but even then, misclassification penalties are often minimal and just require you to pay off any compensation that the person would have been owed as an employee.

Some people want to be employees

The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.

You might not have as much control over your talent

Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.

How can I pay people in 

Uruguay

?

If you’re hiring contractors in 

Uruguay

, you can pay them with Panther in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.

Hiring and paying your team in 

Uruguay

Hire and pay with Panther

Pay everyone with a single click
Get great currency conversion rates
Pay $0 in platform fees
Run payroll in seconds
Let Panther automatically create & store invoices
Let Panther automatically write locally-compliant contracts
Let Panther automatically file local tax documents

Hire and pay without Panther

Pay all your contractors individually
Do all currency conversions yourself
Shoulder the burden of platform fees
Spend hours each month making payments
Manually track & store invoices
Manually write & sign contracts
Manually file relevant tax documents

Let Panther save you from hiring headaches.

Sign up today for $0

If you want to hire employees in 

Uruguay

If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Uruguay than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Uruguay.

Taxes in 

Uruguay

Employer tax

Employer Contributions

  • 12.625%

Individual tax

Leave

Paid Time Off (PTO)

All workers have the right to 20 days’ annual leave. From the fifth year of work, an extra leave day is added, and then every four years another day is added, up to a maximum of 25 days.

The annual leave should be used in the year after which it was accrued. It  may be divided into two periods, the shorter of which may not be less than 10 days.

In addition to the worker’s regular remuneration during leave, the worker is entitled to receive an additional amount called “vacation salary” (technically “amount for the better enjoyment of the annual leave”), equal to 100% of the net vacation daily wage.

Public Holidays

There are 12 public holidays.

Sick Days

The first 3 days are paid in full by the employer and the fourth day onward is paid 70% by the institute of social security (BPS).

Maternity Leave

Female employees get six weeks before and eight weeks after the  birth as maternity leave, paid by the Institute of Social Security.

Paternity Leave

Fathers receive 10 days of leave.  

Marriage Leave

None.

Bereavement Leave

None.

Termination

Termination Process

Employees have the right to terminate employees, but must provide a notice period as well as severance pay.

Notice Period

A notice of 1.5 weeks should be given.

Severance Pay

Employees are entitled to severance payments which includes one months salary for every year employed up to 6 months of salary.

Probation Period

Common practice to have a probation period of up to 3 months.

Employee requirements in 

Uruguay

Working Hours

A normal work week is 44 hours.

Overtime

Employees who exceed 44 hours in a week are entitled to overtime pay at 200% of the regular salary.

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