Uruguay Compensation & BenefitsReading Time: 2 minutes
Your employees expect and deserve the best. While providing the minimum Uruguay compensation laws will ensure that you stay compliant, going above and beyond will encourage your employees to stay with your company. The same is true about your Uruguay benefits management plan, but many companies do not have the time or knowledge to focus on hiring while dealing with so many other tasks.
Globalization Partners offers Uruguay compensation and benefits outsourcing to all companies looking to expand to the country. Instead of worrying about meeting the applicable laws, we’ll act as the Employer of Record to shoulder compliance. By adding your employees to our payroll and benefits plan, you can work fast and start benefitting from your new location right away.
Uruguay Compensation Laws
Uruguay’s minimum wage is 15,000 Uruguayan pesos per month. Employees typically work 44 hours a week in the commerce sector and 48 hours a week in the industrial sector. Any overtime work should get paid at two and a half times the employee’s regular compensation. All employees are also entitled to Aguinaldo, which is an annual bonus payment also known as a 13th salary. This bonus should equal one month’s salary and be paid in two installments — one in June and the other in December.
Guaranteed and Supplemental Benefits
Your employees must receive guaranteed and supplemental benefits as soon as they start working for your company. For example, paid time off has to include 20 vacation days after the employee’s first year and one additional vacation day for every five years of service. Uruguay also has five public holidays that employees should get paid time off for.
Employers do not have to provide sick leave, so instead, employees can get paid sick time through the Institute of Social Security (BPS). Maternity leave is also provided through BPS. New mothers get 12 weeks of paid leave — six before the due date and six after. Male employees should get three days of paid time off after the birth of a baby.
How to Disperse Your Uruguay Benefits Management Plan
Once you meet Uruguay’s compensation laws and provide the statutory minimums as part of your Uruguay benefits management plan, you can choose to provide market norm benefits to show employees you care. For example, Uruguay has more than five annual holidays. However, not all of those days warrant paid time off. You can provide time off for those holidays and give employees more supplemental benefits, such as performance-based bonuses and private health insurance.
Compensation and Benefits Restrictions
Your company cannot give any employee compensation or benefits until you incorporate in Uruguay. The other option is Uruguay compensation and benefits outsourcing with Globalization Partners. Instead of spending weeks or months of your time setting up a subsidiary, you can use our existing infrastructure to work fast. You can trust our team to handle compensation and benefits while you spend your time working on your business.
Contact Us to Learn More
Globalization Partners wants to see your company succeed in Uruguay and beyond. Contact us today to learn more about benefits and compensation outsourcing.