Your employees expect and deserve the best. While providing the minimum Uruguay compensation laws will ensure that you stay compliant, going above and beyond will encourage your employees to stay with your...
Read MoreYour employees expect and deserve the best. While providing the minimum Uruguay compensation laws will ensure that you stay compliant, going above and beyond will encourage your employees to stay with your company. The same is true about your Uruguay benefits management plan, but many companies do not have the time or knowledge to focus on hiring while dealing with so many other tasks.
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Your employees expect and deserve the best. While providing the minimum Uruguay compensation laws will ensure that you stay compliant, going above and beyond will encourage your employees to stay with your company. The same is true about your Uruguay benefits management plan, but many companies do not have the time or knowledge to focus on hiring while dealing with so many other tasks.
Globalization Partners offers Uruguay compensation and benefits outsourcing to all companies looking to expand to the country. Instead of worrying about meeting the applicable laws, we’ll act as the Employer of Record to shoulder compliance. By adding your employees to our payroll and benefits plan, you can work fast and start benefitting from your new location right away.
Uruguay’s minimum wage is 17,930 Uruguayan pesos per month as of January 1, 2021. Employees typically work 40 hours a week. Any overtime work should get paid at two and a half times the employee’s regular compensation. All employees are also entitled to Aguinaldo, which is an annual bonus payment also known as a 13th salary. This bonus should equal one month’s salary and be paid in two installments — one in June and the other in December.
Your employees must receive guaranteed and supplemental benefits as soon as they start working for your company. For example, paid time off has to include 20 vacation days after the employee’s first year and one additional vacation day for every five years of service, and after that 1 day every 4 years. Uruguay also has five public holidays that employees should get paid time off.
Employers do not have to provide sick leave, so instead, employees can get paid sick time through the Institute of Social Security (BPS). Maternity leave is also provided through BPS. New mothers get 12 weeks of paid leave — six before the due date and six after. Male employees should get ten days of paid time off after the birth of a baby which is paid by BPS; in addition to the 3 days paid by the employer.
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Once you meet Uruguay’s compensation laws and provide the statutory minimums as part of your Uruguay benefits management plan, you can choose to provide market norm benefits to show employees you care. For example, Uruguay has more than five annual holidays. However, not all of those days warrant paid time off. You can provide time off for those holidays and give employees more supplemental benefits, such as performance-based bonuses and private health insurance.
Your company cannot give any employee compensation or benefits until you incorporate in Uruguay. The other option is Uruguay compensation and benefits outsourcing with Globalization Partners. Instead of spending weeks or months of your time setting up a subsidiary, you can use our existing infrastructure to work fast. You can trust our team to handle compensation and benefits while you spend your time working on your business.
Creating an effective benefits program offers several advantages for your company. Along with strengthening your recruiting and hiring, your benefits scheme can help improve retention.
When you demonstrate your appreciation for your employees with thoughtful provisions that help meet their needs, you support their long-term success in your company. Your employees will be equipped to contribute more to the team, navigate challenges, and pursue professional and personal goals. With a well-developed team, your company as a whole can achieve more.
You might offer provisions like these to help support your employees:
Before providing any fringe benefits, ensure you’ve met the minimum provisions required by the country’s labor laws. These include:
While you can expect each country to have unique requirements for benefits, having a consistent strategy will help you navigate the planning process anywhere you go.
Assess your available resources and set a sustainable budget for your benefits plans. Discuss top program goals, such as employee recruitment or retention, to help you prioritize spending as you begin planning.
To compete in the market, you need to understand local economic conditions. Research current trends and see what other businesses in the area offer employees in their benefits programs. See if you can match or exceed those provisions.
You might also want to interview local employees about the top benefits they want from employers.
With your budget in mind, you can create a plan. Build the mandatory benefits into your program first and use the remaining funds to support highly desired fringe benefits. Remember that administration costs, outsourcing expenses, and employee contributions may affect your final program costs.
Every company’s program costs will vary depending on factors like operating scale and budget. An average cost may not be a useful metric in your planning, but you can estimate your expenses based on your own budget and program objectives.
One way to sustainably build your program is to fund it with a set percentage of yearly revenue. As your income grows, you can increase your program spending accordingly.
For mandatory benefits, ensure that you meet or exceed the required pay rates for each employee. Pay for annual leave may increase depending on an employee’s length of service with your company.
When you plan supplemental benefits, you can make your calculations based on competitive rates.
Essentially all benefits with monetary value are taxable under local laws. The mandated and supplemental provisions you give employees will be classified as part of their yearly income.
The country’s National Integrated Health System includes state-sponsored public healthcare and private-sector care. As an employer, you are not responsible for providing health insurance coverage options for employees.
Globalization Partners’ Global Employment Platform™ helps you build and scale an international team quickly and easily, ensuring all benefits offered to candidates are compliant and in line with local regulations. Learn more about our platform and request a proposal today.
If you’re ready to grow your business, or you have questions about a specific country, complete the form. One of our experts will be in touch shortly.
