Hire your remote team in Uruguay

Only 499 EUR per employee per month

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Hiring a remote team in a country as Uruguay comes with a lot of overhead, such as compliance, local laws, taxes, etc. As a company, you don't want to worry about knowing all the local laws. Instead you want to focus on your remote team and the business. Rivermate's Employer of Record (EOR) solution helps companies hire remote employees in Uruguay. We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business.

A remote team

1. Hire a remote team in Uruguay with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in Uruguay, particularly if you don't have established local relationships. You can hire employees in Uruguay effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

2. Introduction

Rivermate is a global employment solutions company that provides Employer of Record services in Uruguay.

As an employer of record, we help you hire employees and run payroll services in Uruguay, allowing you to avoid the necessity of first establishing a branch office or subsidiary in Uruguay.

It is not necessary to establish an entity in order to hire an employee. We can hire your employee in any country with a few mouse clicks. Using our Employer of Record solution, you can have full compliance, benefits, and automated payments.

If you wish to hire a remote team in Uruguay or individually hire remote employees in Uruguay, Rivermate’s global employer of record services will make sure that the process will be as seamless as possible for you.

Send us a message so we can talk about how Rivermate’s Employer of Record Uruguay services can best help your company!

3. Hire a remote team in Uruguay

Hiring remote employees in Uruguay is a decision that requires a lot of analysis and scrutiny. Recruiting the right employees is another important task. To prevent penalties and delays, employers must learn how to recruit personnel and understand the country's employment compliance rules.

4. Cost of living in Uruguay

Uruguay's cost of living is $1090, which is 1.17 times higher than the global average. Uruguay ranked 50th out of 197 countries in terms of cost of living and 52nd in terms of quality of life.

In Uruguay, the average after-tax salary is $670, which is enough to cover living expenses for 0.6 months.

5. Cost of renting in Uruguay

The cost of living in Uruguay is $846, which is 1.15 times higher than the global average. Uruguay is the 47th best country to live in, with the 86th lowest cost of living among 197 countries. The average post-tax salary in Uruguay is $567, which is enough to cover living expenses for 0.7 months.

If you want to rent a place in Uruguay, the exact cost will depend on several factors, including the location, amenities, and facilities required. Locations in the city are significantly more expensive to rent than locations in the suburbs. Rent in Uruguay is much lower than in other South American countries when compared to the United States. Similarly, the cost of living in tier 1 cities is much higher than in tier 2 cities.

Tier one cities include Montevideo, Salto, Ciudad de la Costa, Paysand, and others.

Tier 2 cities include Las Piedras, Rivera, Maldonado, Tacuarembó, and others.

6. Major industries in Uruguay

Agriculture, textiles, and leather: Throughout its history, beef and wool have been Uruguay's most important exports. Since Uruguay joined the Mercosur agreement in 1991, beef exports have increased, allowing the country to reach out to more distant markets such as Japan. Wool exports have suffered in recent years as a result of market competition from other countries, such as New Zealand, and changes in demand during the developed world's 2008/09 recession. Despite the fact that timber processing is prohibited, forestry has become a thriving business in recent years.

Uruguay imports crude and refined oil from other countries to meet its energy needs. It produces a wide range of petroleum products. Uruguay has an abundance of renewable energy resources, accounting for 95 percent of the country's electricity.

Mining: Although this sector does not contribute significantly to the country's economy, there has been some activity in recent years in gold and cement production, as well as granite extraction.

Plastics have become one of Uruguay's most important manufactured exports, thanks to two massive investments in 1991 and 1997. These investments paved the way for the majority of Uruguay's significant plastic-based exports, which have become critical to the country's economy.

Telecommunications: Despite low fixed-line investment, Uruguay's small population has allowed the country to achieve one of the highest teledensities in South America, as well as complete digitalization of major lines. Despite the fact that the telecommunications sector has long been a governmental monopoly, efforts have been made to liberalize it and allow more businesses to enter the cellular sector.

Tourism and travel accounted for 9.4% of the country's GDP in 2013.

1. The majority of their tourism industry is geared toward attracting visitors from neighboring countries. The interior of Uruguay, particularly the region around Punta del Este, is currently the most popular tourist destination in the country.

7. Hiring cost in Uruguay

The hiring cost is an essential aspect to consider when you plan to hire remote workers in Uruguay. Screening checks, legal aid, translator, staffing agency, hiring committee, the establishment of a legal organization, and ads are all considerations. Other variables that influence recruiting expenses include the cost of living in a place, training, onboarding, and opportunity costs.

8. Employment laws Uruguay

1. Salary Payment: Under a new law that went into effect recently, all payments must now be made using a financial instrument such as a check or a bank transfer. With a few exceptions, cash payments are no longer accepted. The Ministry of Labor sets a national minimum wage. Furthermore, each type of business activity has its own set of employee minimum wages. Collective agreements are negotiated by Wage Panels ("Consejos de Salarios"), which are made up of employers, employees, and government officials. Salaries are paid monthly, weekly, or daily.

2. Working Hours: The average working day is 8 hours long and 48 hours per week, with retail workers working 44 hours. The parties can agree to work fewer hours, but not more.

3. When it is a working day, overtime should be paid at twice the regular rate. When it is a non-working day, the rate is multiplied by multiples.

4. Aguinaldo: This is a legally required reward instalment equal to one month's pay, known as a thirteenth compensation. It is payable in two installments, one in June and one in December.

5. Paid vacation: Each representative is entitled to 20 days of paid vacation per year. They are qualified for one extra day per year if they work with a similar boss on a regular basis. The worker is not qualified for any occasion during the primary year of work - during that first year, they collect the option to take an occasion the following year.

6. Representatives are eligible for paid additional leave as follows:

- Maternity leave (12 weeks)

- Paternity leave (3 days)

- Marriage Leave (3 days)

- Study leave for college understudies (6, 9, or 12 days of the year relying upon the number of hours worked)

- Leave for family passing (3 days)

- Leave for association exercises – relies upon the aggregate arrangement)

Payment of Holidays: All representatives are eligible for paid occasions; for example, in addition to their right to 20 days of paid occasion leave, they should be paid an additional instalment equal to 100% of their salary for those 20 days. The idea is that they need their regular pay to cover their basic needs, and this extra cash will allow them to attend an event.

9. Top skills Uruguay

When staffing and recruiting in Uruguay— or any other unfamiliar country — cultural nuances must be considered. A miscommunication could be all that stands between your company and a talented new employee who will help it grow. Before traveling abroad, invest some time in learning about Uruguay business etiquette and workplace culture. Consider the following factors as you begin scheduling interviews and meetings with potential hires in Uruguay.

Learning about Uruguay culture and business etiquette will help you navigate meetings and interviews, but you should also research the logistics of staffing and recruiting in Uruguay. When sourcing talent, you must consider a number of factors, including the best recruitment channels in Uruguay and the laws your company must follow to remain compliant abroad.

When you start recruiting in Uruguay you must decide whether you want to handle the process in-house or outsource it. Finding the right balance and making the most of your company's time and money can be difficult. It can take months to find talent on your own, and you'll need to find the best newspapers and job boards to advertise your open positions. If you're new to the Uruguay market, professional networking can be difficult.

However, if you choose to hire employees through a traditional recruiting firm in another country, the costs can quickly add up. As a result, many companies that want to outsource the process choose to work with an Employer of Record, such as Rivermate, whose platform includes recruitment.

10. Economic landscape in Uruguay

Uruguay's economy has remained in the moderately free category this year, as it has since the Index's inception in 1995. To transition from basically free to mostly free, the government would need to improve the judicial system, reduce government spending, relax labor market rules, and reduce state meddling and control in the banking sector. The COVID-19 pandemic was expected to reduce the country's GDP by 4.5 percent in 2020.

11. Market size in Uruguay

Uruguay's agricultural industry is the country's economic backbone, exporting beef, dairy, wine, grains, and forestry products. More than half of Uruguay's total exports are agricultural products. Almost half of all industrial output is accounted for by food processing and agricultural product refinement. Uruguay's most popular export product in 2019 was beef, and China was the country's top export destination. Uruguay is also a popular destination for foreign investors. It is one of the region's most politically and economically stable countries, and its Free Trade Zones can serve as a regional distribution hub.

From 2003 to 2019, Uruguay's economy expanded for the longest period in its history. While economic growth in Uruguay remained strong in 2014, it began to slow in 2014 and is expected to fall to 0.5 percent in 2019. Commodity price drops, as well as recessions in Argentina and Brazil, two of Uruguay's key trading partners, all contributed to the drop. Experts predict that the economy will contract in 2020 due to the economic consequences of the coronavirus pandemic, but it will grow in 2021.

12. Minimum wage in Uruguay

Uruguay's minimum wage is 10,000 Uruguayan pesos per month.

13.Why choose Rivermate to hire your remote team in Uruguay?

Establishing an entity in Uruguay to hire a team takes time, money, and effort. The labor law in Uruguay has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into Uruguay simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record (EOR) solutions in Uruguay give you peace of mind so you can focus on running your business. Please contact us if you'd like to learn more about how Rivermate can help you hire employees in Uruguay via our Employer of Record (EOR) / PEO solution.

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