Uruguay — Payroll

Key facts

• Employer social charges are 12.625%: retirement 7.5%, health insurance 5% and labour reconversion fund 0.125%, applied to salary plus 13th-month pay.
• The 13th-month bonus adds 8.33% and holiday pay (20 days) adds 4.47%.
• Occupational accident insurance adds 0.98%; outside free zones it also carries a 2% public health tax and recoverable 22% VAT.
• Free-trade-zone users are exempt from income tax, VAT and wealth tax but must still pay social security for Uruguayan staff; 75% of staff should be Uruguayan.
• Wages are set by individual contract, union agreements or tripartite Wage Boards readjusted twice a year; employee-side rates were not stated.

Steps

1. Step 1 — Withhold IRPF and employee BPS contributions monthly
2. Step 2 — Remit employer BPS contributions monthly
3. Step 3 — Pay aguinaldo installments on the statutory schedule

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