Employer of Record in Uruguay

For companies building teams of 10 or more across business, technical, and operational functions — not for individual hires.
Talk to us about Uruguay

Why companies build teams in Uruguay

Lundi supports compliant employment in Uruguay — Montevideo concentrates the senior tech talent (dLocal, Globant alumni). Strong fit for high-quality Spanish-language engineering and customer success at lower cost than Argentina without the currency volatility. For broader Latin American scaling we also recommend Colombia or Argentina.

Languages

Spanish

Payroll Frequency

Monthly

Currency

UYU

Capital City

Montevideo

Employer Tax Rate

12.60%

Uruguay has built a notable senior tech sector concentrated in Montevideo — dLocal, Globant alumni, plus growing software engineering serving US and European clients. Political and currency stability is meaningfully better than Argentina, with comparable senior tech quality. Uruguayan peso (UYU) is the local currency. Employer social contributions run ~12.625% above gross. Strong fit for senior Spanish-language engineering, customer success, and product talent serving US East Coast customers. Smaller talent pool than Argentina or Colombia. For broader Latin American scaling Lundi typically also considers Colombia (deeper everything) or Argentina (lower cost with currency risk).

Cost of Employment in Uruguay

What it costs to employ someone through Lundi.

Lundi's cost is the all-in cost of the employee — gross salary plus statutory employer contributions plus customary benefits — and a Lundi management fee on top. The management fee depends on team size and scope: smaller teams pay a higher per-head rate, teams of 20+ get materially better unit economics, and Build–Operate–Transfer engagements are structured separately.

The alternative paths look like: setting up your own local entity (meaningful months of legal and accounting work, plus ongoing in-country HR, payroll, and compliance infrastructure), engaging a local recruitment agency on contingency (typically a percentage of first-year compensation, paid once, with no ongoing employment relationship), or hiring as a contractor (lower upfront cost, real misclassification risk in most jurisdictions). Lundi is faster than entity setup, structurally different from contingency recruitment, and lower-risk than contractor arrangements.

Talk to us for specific pricing.

Talk to us about Uruguay

Employer Tax Costs in Uruguay

Employers in Uruguay are required to pay 12.625% on top of an employee’s salary in social contributions. This includes:

Employee Income Taxes in Uruguay

In Uruguay, employees pay between 0% and 36% in taxes depending on their income bracket. They also pay between 18.1% and 23.1% in social security.

Employee Probation in Uruguay

In Uruguay, the probationary period is three months.

Employee Overtime in Uruguay

Employees in Uruguay work eight hours a day, 48 hours per week.Overtime work on a working day is paid at the rate of two times of regular salary. Work on public holidays or non-working days is paid at two and a half times of an employee’s regular compensation.

Employee Notice in Uruguay

The notice period must be agreed upon in the employment contract.

Termination in Uruguay

Employers in Uruguay have the right to terminate employees, but must provide a notice period as well as severance pay.Terminated employees (except those dismissed for serious misconduct) are entitled to severance payments, the amount of which is equivalent to one month's salary for every year worked, up to a maximum of six months' salary. This includes holiday pay, other benefits, commissions, and aguinaldo.

How Lundi works in Uruguay

Build

We scope your team and recruit the right people in-country — finance, accounting, HR/payroll, BD, ops, or IT.
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Operate

We employ the team via our local entity and run the day-to-day — payroll, compliance, HR, and performance management.
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Transfer

When you're ready, we transition the team to your own legal entity. Or stay on Lundi's infrastructure indefinitely — your choice.
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Why Companies Choose Lundi

If you need help with anything, we're here for you

Who is Lundi for?

Lundi works with companies building teams of 10 or more across business, technical, and operational functions . Not for one-off hires or individual placements.

How is this different from an EOR?

EOR platforms employ individuals for you. Lundi recruits, employs, and operates concentrated teams — including day-to-day management, HR, and an optional path to your own entity. It's the operating model for companies that have outgrown the EOR ceiling.

Still have any questions? Talk to us.