Global Deployments is a payroll outsourcing provider that manages compliant payroll for companies with employees in Uruguay, whether those employees are hired through a local entity, an Employer of Record, or a PEO arrangement. As a payroll Uruguay partner, Global Deployments handles BPS social security registration, FONASA health insurance contributions, IRPF income tax withholding, Aguinaldo calculation, and all statutory payroll reporting, so international companies can operate compliantly in this South American market.
Quick facts: Payroll Uruguay at a glance
- BPS pension: 7.5% employer, 15% employee of gross salary (employee contribution split between BPS and AFAP fund)
- FONASA (health insurance): 5% employer, variable employee rate (3%, 4.5%, or 6% depending on salary and dependants)
- IRPF income tax: progressive 0% to 36% on employment income
- Minimum wage: UYU 22,268 per month (2024, reviewed annually)
- Aguinaldo: 1 month salary per year, paid in two instalments (half in June, half in December)
- Annual leave: 20 working days after the first year, with additional days per year of service
What Is Payroll Outsourcing in Uruguay?
Payroll outsourcing in Uruguay means engaging a local specialist to manage the calculation, filing, and remittance of all statutory payroll obligations on behalf of the employer. Global Deployments’payroll Uruguay service covers BPS and AFAP registration, monthly contribution management, FONASA health contributions, IRPF income tax withholding, Aguinaldo preparation, and payslip generation in UYU, for both local entity employers and companies using an EOR or PEO structure.
Beyond payroll outsourcing, Global Deployments also supports companies that want a full Employer of Record Uruguay arrangement, enabling hiring without a local entity, or a PEO co-employment structure for those already registered in Uruguay but seeking to outsource the HR employer function.
Uruguay Employment Law at a Glance
| Requirement | Detail |
|---|---|
| Governing law | General Labour Law framework (multiple laws including Ley 16.244 and subsequent) |
| Minimum wage | UYU 22,268 per month (2024) |
| Social security body | BPS (Banco de Prevision Social) |
| Pension savings | AFAP private fund (mandatory for employees under 40 at affiliation) |
| Tax authority | DGI (Direccion General Impositiva) |
| Aguinaldo | 1 full month salary per year, paid in June (50%) and December (50%) |
BPS, FONASA, and IRPF Compliance in Uruguay
Uruguayan payroll runs on three parallel obligations: IRPF income tax withheld and remitted to the DGI (Direccion General Impositiva), BPS pension contributions remitted to the Banco de Prevision Social, and FONASA health insurance contributions. Employer BPS contributions are 7.5% of gross salary. Employee contributions are 15% of gross salary, of which a portion is directed to the employee’s individual AFAP (private pension fund) for employees who were affiliated under 40 years of age. FONASA employer contributions are 5% of gross salary; employee health contributions vary from 3% to 6% depending on salary level and whether the employee has dependant children. IRPF income tax on employment income is progressive, running from 0% on the lowest income bands to 36% on the highest. The Aguinaldo (thirteenth month bonus) must be paid in two instalments: 50% in June and 50% in December.
Because Uruguay’s employee FONASA rate is income-dependent and changes when salary crosses prescribed thresholds, and because the Aguinaldo instalments must be calculated on the exact wages paid in the preceding six-month period, manual payroll errors in Uruguay are common for companies without specialist local support. This is the compliance gap Global Deployments’ payroll Uruguay services are built to close.
Why Companies Choose Global Deployments for Payroll Services in Uruguay
Global Deployments manages payroll across 160+ countries through its vetted in-country partner network, giving companies a single provider for South American and global payroll. For Uruguay specifically, Global Deployments handles:
- BPS employer and employee contribution remittance and AFAP fund routing
- FONASA employer and income-tiered employee health contribution management
- IRPF income tax withholding and DGI monthly return filing
- Aguinaldo calculation and June and December instalment payment
Frequently Asked Questions
What does payroll outsourcing in Uruguay actually cover?
Global Deployments manages BPS social security contributions, FONASA health insurance, IRPF income tax withholding, Aguinaldo preparation, and payslip generation in UYU, for both local entity employers and EOR or PEO arrangements.
How much do employers contribute to BPS in Uruguay?
Employers contribute 7.5% of gross salary to BPS for pension, plus 5% to FONASA for health insurance. Total employer statutory contributions are approximately 12.5% of gross salary, before work injury (BSE) insurance which varies by industry.
What is Uruguay’s minimum wage in 2026?
The national minimum wage is UYU 22,268 per month as set in 2024. It is reviewed annually by the government.
Can Global Deployments handle payroll if we already have a Uruguayan entity?
Yes. Global Deployments provides payroll outsourcing for companies that already hold a local entity in Uruguay but want BPS, FONASA, and IRPF compliance managed by a specialist provider.
About Global Deployments
Registered Company Name: Global Deployments | Part of Africa Deployments Ltd.
Address: The Strand, Beau Plan Business Park, Mauritius
BRN: C19167158 | VAT: 27738392
Phone: +230 5713 8629
Website: global-deployments.com
Uruguay’s income-tiered FONASA contributions, bi-annual Aguinaldo instalments, and dual BPS and AFAP pension routing require specialist payroll management from the first pay run. Global Deployments’ payroll Uruguay service provides the BPS registration, DGI compliance, and statutory benefit management needed to run compliant payroll in Uruguay whether or not you hold a local entity.
Reviewed by: Global Deployments Compliance Team
