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Uruguay — Hiring Employees

Hiring in Uruguay involves probation commonly up to three months, a mandatory aguinaldo bonus, 20 days of annual leave and employer contributions of around 12.6% to the BPS.

VerifiedProfessional tax guide — not a government sourcePlayroll, Uruguay employment cost guide (commercial source)Last reviewed: 2026-10-26

Key facts

  • Probation periods are commonly up to three months, set in individual contracts or collective agreements.
  • The aguinaldo is a mandatory 13th-month bonus of one-twelfth of annual earnings, paid in June and December.
  • Employer contributions go mainly to the Banco de Prevision Social at typically around 12.6% of payroll, plus labour accident insurance.
  • Employees get 20 days of paid annual leave after one year of service, rising with seniority, and about 10 to 11 public holidays.
  • Working hours, minimum wage, severance and notice periods are not given; check official sources.

Steps

  1. Step 1 — Register the employee with BPS (social security) before their start date
  2. Step 2 — Confirm the applicable Consejo de Salarios sector agreement for minimum wage/conditions
  3. Step 3 — Set up payroll withholding for IRPF and BPS contributions

Related topics

payrollsocial-securityannual-compliance

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