Hiring staff through an employer of record (EOR) in Uruguay is popular among investors who only need a limited number of local staff, or who are planning a short-term operation. When you hire through an EOR in Uruguay, your staff are officially employed by the service provider, while you retain full control over their duties and workloads.

That means you can avoid having to go through entity formation and liquidation, and can become productive in only the time it takes to find the employees you need. Generally that will be a matter of weeks, however it could be just a few days, depending on the roles being filled.
While Uruguay is one of the smallest economies in Latin America by gross domestic product (GDP), many investors find that fact to be advantageous, as it is easier to build a high profile locally.
SEE ALSO: Find the Right Corporate Lawyer in Uruguay
It also has an outsized profile as a trade hub, with capital city and principal port Montevideo emerging in recent years as one of the main exit and entry points for goods produced and imported by the Southern Common Market (Mercosur) — a 30-year-old economic association that also includes Argentina, Brazil, and Paraguay.
Moreover, Uruguay is one of the most politically stable and highly-developed economies in the region, boasting the highest gross national income (GNI) of all nations in Latin America as well as some of the lowest violent crime statistics.
With a well-established middle class and low rates of extreme poverty, Uruguay is home to a sizable professional services sector, as well as a growing pool of tech talent — with the country rapidly emerging as a financial technology (fintech) hub in the region.
Those conditions inspire considerable confidence among investors, especially those from English-speaking countries or who do a lot of their business in the language, given that Uruguay has one of the highest rates of English proficiency in the region.
Read on to understand more about what an EOR in Uruguay will do for you and the legal requirements it will take care of. Or go ahead and contact us now to find out more about how we can support you doing business in Uruguay.
What will an EOR in Uruguay do for you?
An EOR in Uruguay will seek out and hire staff on your behalf through its locally registered entity, giving you local workers without the need for forming a company yourself.

While those workers will officially be employed by the EOR firm, you will retain total control over their schedules and duties, and be responsible for meeting all financial responsibilities related to salary and benefits, although the EOR will calculate them for you.
While hiring via an EOR in Uruguay will obviously come with a fee — usually levied on a per employee basis — that cost is often considerably lower than costs associated with establishing, running, and closing down an entity.
Hiring through an EOR in Uruguay is also much more time efficient, as you can count on having local staff in just the time it takes to recruit and onboard them — two things that the provider will also take a leading role in.
Your EOR in Uruguay will also provide you with the peace of mind that comes with knowing that your compliance with local norms and regulations is guaranteed, meaning you will not need to worry about financial penalties or legal inconveniences.
Moreover, by working with an EOR in Uruguay, you will have the chance to get to know the market better, giving you the opportunity to assess its potential for a deeper investment via entity formation later down the road.
With that final point in mind, many investors choose to seek EOR services from a provider that offers a broader portfolio of back-office services, including the likes of company formation and accounting, because that same provider will be able to support you in the event you decide to increase your engagement with the market.
Note that an EOR can also be known as a professional employer organization (PEO).
What will an EOR in Uruguay take care of?
Your EOR in Uruguay will take responsibility for a range of tasks, including but not limited to:
- Preparing legal documents, including employment contracts
- Organizing visas and work permits for employees as needed
- Responding to requests and correspondences from local authorities
- Onboarding and offboarding employees hired on your behalf
Your EOR in Uruguay will also oversee the proper implementation of all legal requirements related to your employees, including:
- A maximum work week of between 44 and 48 hours, depending on the role they are performing
- Timely payment of salaries, including enforcement of the minimum wage, which in 2021 was set at 17,930 Uruguayan pesos (approximately USD 408 as of November 2021)
- Honoring annual vacation allowances, with employees entitled to 15 paid time off days after one year of service.
Employee Deductions:
- Pension Fund contributions paid to the pension fund named by the employee, with deductions totalling 15% of the salary
- National Health Fund contributions totalling between 3% and 8% of the salary.
- Labor Retraining Fund contributions, totalling 0.125% of the salary
Employer Contributions:
- Pension fund contributions totalling the equivalent of 7.5% of the employee’s salary
- National Health Fund contributions equal to those deducted from the employee’s salary
- Accident insurance, calculated at a rate based on the level of risk associated with the job role
Biz Latin Hub can support you doing business in Uruguay
At Biz Latin Hub, our multilingual team of hiring and EOR specialists has the experience and know-how to support you with finding the right staff and doing business in Uruguay.
Our comprehensive portfolio of services includes accounting & taxation, company formation, corporate legal services, and visa processing, among others, meaning that we are able to offer tailored packages of integrated back-office services to meet every need.
That also means that we can facilitate a deeper investment in the market if you decide to go further than contracting via an EOR in Uruguay.
Contact us today to find out how we can support you doing business in Uruguay, or any of the other 15 markets in Latin America and the Caribbean where we have a presence.
Or read about our team and expert authors.

The information provided here within should not be construed as formal guidance or advice. Please consult a professional for your specific situation. Information provided is for informative purposes only and may not capture all pertinent laws, standards, and best practices. The regulatory landscape is continually evolving; information mentioned may be outdated and/or could undergo changes. The interpretations presented are not official. Some sections are based on the interpretations or views of relevant authorities, but we cannot ensure that these perspectives will be supported in all professional settings.