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Social Security is financed by contributions from workers, employers and the State, and immigrants have the same rights as Uruguayans.


The exercise of a remunerated activity implies mandatory registration with the Social Security Authority (BPS), both by dependent workers and employers as well as self-employed workers, who must also register and make contributions.


Social security offers different benefits according to needs and circumstances: maternity, paternity, unemployment, disability, industrial accidents, and death risks:

  • In cash: unemployment benefit, maternity benefit, family allowance, retirement, old age pension.

  • In kind: eyeglasses, prostheses, orthotics. 

  • In services: membership in a health insurance mutual fund, maternal and child care.

The system is currently made up of several public agencies. The main ones are the Ministry of Labor and Social Security, the Social Security Administration, and the Pension Savings Fund Administrators (AFAPs).

The Social Security Authority (BPS) is responsible for collecting virtually all contributions made by companies and employees, and for keeping each member’s work record up to date. Specifically, the BPS is an autonomous agency whose basic task is to coordinate social welfare services and organize social security.

Registration with such agency is mandatory, with the exception of foreign workers holding positions in Free Trade Zones. In addition, some foreign workers may opt out of the social security system, under the protection of international treaties signed by Uruguay.

As of 2023, Uruguay has agreements in force with:  Argentina, Austria, Belgium, Bolivia, Brazil, Canada, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, United States,  France, Germany, Greece, Israel, Italy, Luxembourg, Netherlands, Paraguay, PeruPortugal, Quebec, Romania, Russia, South Korea, Spain, Switzerland and Venezuela. More information here. 

What obligations do I have as an employee?

As an employee you must comply with certain obligations necessary to ensure your access, and that of your family, to the benefits to which you are entitled. You have the obligation to contribute a portion of your salary each month, which must be withheld by your employer at the time of payment and paid to the BPS. The personal contribution rates withheld from your salary are as follows:


  • Retirement contribution: 15%.

  • National Health Insurance: 3% and in case your spouse does not have health coverage, it will be increased to 5%, providing coverage to your spouse as well.

  • Additional contribution to the National Integrated Health System in those cases in which the salary exceeds 2.5 Benefits and Contributions Bases (BPC).

  • Labor Reconversion Fund: 0.125%.


Other obligations:


  • Check the pay stub.

  • Become affiliated to a health institution authorized by the National Integrated Health System within 30 days after starting work. If you fail to do so, you will be automatically affiliated to the State Health Services Administration (ASSE) and you will get your medical care at public hospitals. See Health System here.


What obligations do I have as a self-employed worker / employer?


It is important for you to know that if you carry out an activity independently, you have the obligation to register with three organizations before starting the activity:



Other obligations:


  • Report to BPS the income, expenses, and any other changes in the activity of the workers you hire, within the established deadlines.

  • Make the payroll declaration with the information of the labor activity of workers from which the contributions are calculated and the payment invoice is issued.

  • Make contributions in accordance with the applicable date according to the schedule established by BPS. Contributions are mandatory in all cases, whether you have employees or not.

  • Make contributions for yourself as the business owner.

  • Calculate, withhold, and pay in due time and form to BPS the personal contributions withheld on the salary of the workers and the employer contributions you have to make on the nominal wage of each worker.

Pension Savings Fund Administrator (AFAP)


The AFAPs are corporations that manage part of the contributions of workers to the BPS, contributions intended to cover the risks of disability, old age, and survival. These companies operate within the market, under a free competition regime, controlled by the Central Bank of Uruguay and pursuant to the provisions of Law 16,713.


The available AFAPs that can be chosen in Uruguay are:


When you receive income exceeding the amounts established by law, part of your contributions is administered by BPS and another part is transferred to an AFAP.


More information here:

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Know the rights and obligations that workers and employers have in Uruguay.

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Learn about the personal income and tax system.

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