Employer of Record in Uruguay (2026): Costs & Rules

An employer of record (EOR) lets a foreign company hire staff in Uruguay without its own Uruguayan entity. The EOR is the legal employer: it signs the contract, registers the employee with the BPS and runs payroll, while you direct the work. Here is what the law allows and what it costs in 2026.

Is EOR legal in Uruguay?

Yes. Uruguay regulates outsourcing rather than banning it. Law 18,251 defines subcontractors, intermediaries and labor suppliers (empresas suministradoras de mano de obra), which employ workers to place them with a client company that directs their tasks. Under Law 18,099, the client is jointly liable for the workers’ wages, BPS contributions and BSE work-accident insurance during the assignment. If the client uses its right to be informed (BPS and BSE certificates, payroll records, pay slips), its liability becomes subsidiary instead (Law 18,251, arts. 4 and 6). Ask your EOR for these documents every month.

Minimum wage in 2026

The national minimum wage is UYU 24,572 a month from 1 January 2026 and UYU 25,383 from 1 July 2026 (Decree 319/025, MTSS). Sector wage councils (Consejos de Salarios) set higher minimums for most job categories.

Social security and employer costs

• BPS pension: 7.5% paid by the employer and 15% withheld from the employee.
• FONASA health: 5% paid by the employer, and an employee contribution that depends on income and family situation.
• Work-accident insurance: a BSE policy is compulsory for every employee.
• Aguinaldo: one twelfth of the year’s earnings, paid in June and December.
• Vacation: at least 20 days of paid annual leave, plus vacation pay (salario vacacional).

Termination and severance

A monthly-paid employee dismissed without serious misconduct (notoria mala conducta) receives severance of one month’s total pay for each year or fraction of a year worked, up to six months (MTSS).

EOR or your own company?

An EOR suits a first hire or a test of the market. For a permanent team, you can set up your own company and employ people directly. Compare the options on our employer of record page, and see our payroll outsourcing in Uruguay guide.

Get help from Easyco

Easyco helps foreign founders set up their businesses in Uruguay and supports them afterwards with tax, accounting and payroll. Request a quote to discuss your hiring plans.