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An EOR in Uruguay Makes Hiring & Market Entry Easy


An employer of record in Uruguay (EOR), is a popular way to hire staff. This option is ideal for investors looking to have limited staff locally or to plan a temporary operation. You retain complete control over your staff’s duties and work load when you employ them through Uruguayan EORs. 

A photo of Montevideo, the capital of Uruguay, where an EOR can hire staff on your behalf
Montevideo is the capital city of Uruguay

This means that you don’t have to go through the process of entity formation or liquidation and you can be productive within the time you take to hire the right employees. It will usually take a couple of weeks to complete, but it may be as short as a few days depending on what roles you are filling.

Even though Uruguay ranks among the least developed countries in Latin America (in terms of gross domestic products), investors see this as a benefit, since it’s easier to get a good reputation locally.

SEE ALSO Find the Right Corporate Lawyer in Uruguay

Also, it is a prominent trade hub. It has a capital city and the principal port Montevideo. emerging in recent years as one of the main exit and entry pointsImport and production of goods the Southern Common Market (Mercosur) — a 30-year-old economic association that also includes Argentina, Brazil, and Paraguay.

Uruguay also has the highest level of political stability and development in the region. boasting the highest gross national income (GNI) of all nationsLatin America, as well 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) hubIn the area 

These conditions instill confidence in investors from English-speaking countries, particularly those doing a lot of business or trading in English. Uruguay is a great example. has one of the highest rates of English proficiencyIn the area

Learn more about the Uruguayan EOR process and all of its legal obligations. You can also go here contact us nowFind out how we can help you do business in Uruguay.

What does an EOR Uruguay mean for you?

EOR Uruguay can help you find and hire employees through its local entity. This will allow you to work with workers in your area without having to form a business. 

A stock image of a handshake representing someone being hired by an EOR in Uruguay
Uruguay’s EOR can help you to find and hire workers

Although these workers are officially employed by EOR, they will still be under your control. You will also be responsible for all aspects of their financial affairs, including salary and benefit calculations.

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.

You will have peace of mind knowing your Uruguay EOR will be in compliance, so you won’t need to worry about any legal penalties.

Furthermore, you can work with Uruguayan EORs to gain a better understanding of the market and be able to evaluate its potential to invest via entity formation.

This is why many investors prefer to use EOR services provided by a provider with a wider range of services. They can help you if you want to expand your market engagement.

Notably, an EOR could also be known by the name of a professional employer organisation (PEO).

What is an EOR Uruguay responsible for?

The EOR for Uruguay is responsible for many tasks including, but not limited:

  • Prepare legal documents including employment contracts
  • Employers: Assist with arranging visas or work permits
  • Response to correspondences and requests from the local authorities
  • Employers hired for onboarding or offboarding

In Uruguay, your EOR will ensure that all laws pertaining to employees are properly implemented.

  • Each role will determine the maximum hours they can work in a week.
  • Payment of wages on time and enforcement of minimum wage (in 2021 it was 17,930 Uruguayan Pesos or USD 408 in November 2021).
  • Annual vacation allowances will be honored. Employees can get 15 paid days off for every year they serve.

Employer Deductions

  • Pension Fund contributions to the retirement fund named by an employee with deductions totalling 15%
  • Contributions to the National Health Fund are between 3% and 88% of your 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
  • Insurance for accident, which is calculated based upon the risk involved in the job.

Biz Latin Hub will help you to do business in Uruguay

Biz Latin Hub is home to a multilingual team. hiring and EOR specialistsOur team has the expertise and knowledge to assist you in finding the best employees and running your business in Uruguay. 

Our comprehensive portfolio of services includes accounting & taxation, company formationCorporate legal servicesWe are capable of offering customized back-office packages that meet all your needs, such as visa processing and passport renewals. 

If you are interested in investing in Uruguay beyond contracting through an EOR, we will be able to help.

Contact us todayFind out more about how we can help you do business in Uruguay or in any other market in Latin America or the Caribbean.

You can also read more our team and expert authors.

Key services offered by BLH including legal services, accounting & taxation, hiring & PEO, due diligence, tax advisory, and visa processing
Biz Latin Hub provides key services

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