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Cost of hiring · South America

Cost of hiring in Uruguay in 2026

Estimated employer cost uplift in Uruguay typically falls in the 28-35% range above gross salary, driven by BPS social security contributions (~17.77%), FONASA health insurance (5%), mandatory aguinaldo (13th salary), and paid leave obligations.

Example annual salary

$30,000

Example employer costs

$9,600

Total employer cost / year

$39,600

Cost breakdown

Gross annual salary$30,000
Employer costs$9,600
Total employer cost per year$39,600

What is included in employer costs

13th month salary$2,496
Social security & pensions$5,472
Other employer contributions$1,632

Key things to know

  • Estimated employer cost uplift: 28-35% above gross salary (illustrative; varies by sector, labor risk insurance class, and voluntary benefits).
  • Key statutory BPS employer contributions: retirement/jubilacion (7.5%), FONASA health insurance (5%), family allowances (5%), labor reconversion fund FRL (0.125%), and unemployment insurance (0.15%) - totaling approximately 17.77% plus variable labor risk insurance (BSE, ~1-3% by sector).
  • Mandatory aguinaldo (13th salary, ~8.33% amortized) is paid in two installments - half in June, half in December. Minimum 20 working days paid vacation per year is also required.
  • Always validate with local experts before signing contracts.

These numbers are directional estimates only. They do not constitute legal, tax, or payroll advice. Always confirm exact employer costs with a local advisor or payroll provider before making hiring decisions.

Compare Uruguay with other markets

See how employer contributions, 13th salary, and total hiring costs differ across other countries.

Frequently Asked Questions

Directionally, employer cost uplift in Uruguay is modeled at 28-35% above gross salary. At the illustrative $30,000 gross annual salary baseline used on this calculator, employer-side contributions round to about $9,600 and total employer cash cost to about $39,600. Uruguay's statutory employer cost stack includes BPS contributions (retirement 7.5%, FONASA health insurance 5%, family allowances 5%, labor reconversion fund 0.125%, and unemployment 0.15%, totaling ~17.77%), variable BSE labor risk insurance (approximately 1-3% depending on sector), mandatory aguinaldo/13th salary (~8.33% annually, paid semi-annually), and minimum 20 working days paid vacation per year (~7.7%). Together these put the estimated employer cost uplift in the 28-35% range above gross salary.

No. These are illustrative estimates only (directionally 28-35% uplift above gross salary for Uruguay in this model). For compliance and tax filings you must rely on licensed advisors or payroll providers.

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