WORK

SOCIAL SECURITY

 

Social Security is funded with worker, employer and State contributions, and immigrants have the same rights to its access as Uruguayans.

 

The exercise of a remunerated activity implies the obligatory inscription in the Social Security Bank (BPS, for its Spanish acronym), when the corresponding contributions are made, both by the dependent workers and the employers. Independent workers must also register and contribute.

 

Social security offers different benefits depending on the needs that may arise when going through certain situations such as maternity, paternity, unemployment, disability, industrial accidents and death risks.

 

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

  • In-kind: lenses, prosthesis, orthosis.

  • In services: mutual affiliation, maternal and child care.

 

The system is currently made up of several public agencies. The main ones being the Ministry of Labor and Social Security, Social Security Administration and Social Security Savings Fund (AFAP, for its Spanish acronym). The BPS is responsible for collecting practically all the contributions made by companies and employees and for keeping the work record of every member up to date. Specifically, the BPS is an autonomous body whose basic task is to coordinate social welfare services and organize social security.

 

Registration with such entity is mandatory, with the exception of foreign workers who hold positions in Free Trade Zone. Furthermore, some foreign workers may waive their inclusion in the social security system, under the protection of international treaties executed by Uruguay.

 

What obligations do I have as an employee?


If you are a worker you must comply with certain obligations necessary to ensure your access and that of your family to the benefits that correspond to them. You have an obligation to contribute a percentage of your salary monthly. The amount corresponding to the contribution must be withheld by your employer at the time of payment and must be paid to the BPS. The percentages of personal contribution, withheld from your salary are:

 

  • Retirement Contribution: 15%

  • National Health Insurance: 3% and in case your spouse or cohabiter does not have health coverage it is 5%

  • Additional from the National Integrated Health System for those who earn more than 2.5 Bases of Benefits and Contributions (BPC)

  • Labor Reconversion Fund: 0.125%

 

Other obligations:

 

  • Check the salary receipt

  • Affiliate yourself to a health institution authorized by the National Integrated Health System within 30 days after you start working. If you do not, you are automatically affiliated with the State Health Services Administration (ASSE) and your healthcare provider will be the public hospitals.

 

What obligations do I have as an independent worker/employer?

 

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

 

 

Other obligations:

 

  • Inform BPS of the income, expenses and any other change in the activity of the workers you hire, within the established deadlines.

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

  • Make contributions according to the date that corresponds to you according to the schedule set by BPS. The contribution is mandatory in all cases, whether you have employees or not.

  • Make contributions for yourself as the owner of the activity.

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


Social Security Savings Fund (AFAP)

 

The AFAPs are public limited companies that administer part of the contribution of contributing workers to BPS, contributions destined to cover the risks of disability, old age and survival. These companies operate within the market, under a regime of free competition, controlled by the Central Bank of Uruguay and under the regulations of Law 16,713. The available AFAPs you can choose are República AFAP, Integración AFAP, Unión Capital AFAP and AFAP Sura.


When you receive income greater than the amounts established in the law, part of your contributions are administered by BPS and another part is discharged to an AFAP. The AFAP manages the percentage of contributions in the individual savings mode and provides disability, old-age and survivorship benefits, as appropriate.

 

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