Employment Cost Calculator for Uruguay
Calculate the total cost of employing someone in Uruguay, including taxes, benefits, and our management fee.
Employer Tax Contributions
| Tax Type | Rate | Base |
|---|---|---|
| Retirement (BPS) | 7.5% - 12.625% | Gross Salary |
| Health Insurance (FONASA) | 5% | Gross Salary |
| Labor Risk Insurance | Varies by industry risk | Gross Salary |
| Family Allowances | 5% | Gross Salary |
Filing & Compliance
- Monthly BPS Contributions: Due by the 10th business day of the following month.
- Monthly IRPF Withholding: Due by the 20th day of the following month.
- Annual Information Returns: Summarizing employee income, withholdings, and contributions for the previous calendar year, typically due in the first few months (e.g., February or March).
In Uruguay, employee tax deductions primarily center around social security contributions and a notional amount for dependent children.
Income Tax (IRPF)
- Progressive Tax Rates: Uruguay's income tax system uses progressive rates. These rates range from 0% to 36% based on the employee's annual gross income. As of 2023, there were proposals to reduce these rates; however, it remains uncertain if and how these changes have been implemented as of February 2025.
- Deductions:
- Social Security Contributions: Mandatory contributions to the social security system are deductible.
- Dependent Children: A notional amount for the education, food, healthcare, and housing of dependent under-age children is deductible. This deduction was proposed to be increased to 20 BPC (US $2,900) per year, per child as of 2023. However, confirm the current amount for 2025. The deductible amount is calculated by applying a proportional rate to allowed deductions based on the employee's nominal annual income. If this income is less than or equal to 180 BPC (US $26,000), the rate was proposed to increase from 10% to 14% as of 2023. Confirm the current rate for 2025. For higher incomes, a lower rate applies. As of 2024 information, those with monthly incomes below 15 BPC (USD 2,300) could deduct 14% of the total deductions, while those earning more could only deduct 8%.
- Rental Payments: A tax credit is available for rental payments for permanent housing. This was proposed to be raised to 8% as of 2023. Confirm the current details for 2025.
- Mortgage Interest: A deduction is available for mortgage interest payments on permanent housing up to a specific limit. This limit was proposed to be raised as of 2023. Check current stipulations for 2025.
Social Security Tax (IASS)
- The Social Security Assistant Tax (IASS) is levied on certain income sources, including pensions and other benefits.
- Minimum Non-Taxable Amount: There's an annual minimum non-taxable amount for the IASS. Verify the current amount for 2025, as changes were proposed as of 2023.
Employer Withholding
Employers in Uruguay are responsible for withholding income tax and social security contributions from employee salaries each month and remitting them to the Dirección General Impositiva (DGI), Uruguay's tax authority. Ensure compliance with current DGI regulations regarding deadlines and procedures for withholdings and payments.
Other Considerations
- Benefits in Kind: Most benefits provided to employees, whether cash or in-kind, are subject to income tax.
- Updated Information: Tax laws and regulations can change frequently. Always verify the latest information with official sources or a tax advisor for the most up-to-date details regarding employee tax deductions in Uruguay for 2025.
