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Social security in Uruguay: BPS contributions, FONASA health rates and the 2023 pension reform

Last verified: 2026-10-27 · Status: Changing

On covered pay the employer contributes 7.5 percent for pensions, 5 percent to the National Health Fund (FONASA) and 0.025 percent to the wage guarantee fund, and withholds 15 percent for pensions and 3, 4.5 or 6 percent for health from the worker, all through the BPS. The health rate depends on whether pay exceeds 2.5 BPC (UYU 17,160 a month in 2026) and whether the worker has dependent children. The 2023 pension reform (Ley 20.130) moves the normal retirement age to 65 with 30 years of service for people born from 1977, with a phase in from 61 for those born in 1973, and an accrual rate of 1.5 percent of the base salary per year at normal age.

USD figures use UYU 40.214 per US dollar, the BCU quotation for DLS. USA BILLETE on 26 October 2026, retrieved from the BCU quotations service on 27 October 2026; conversions are for orientation only.

Key facts

Employee pension contribution	15 %Ley Nº 16.713 art. 181, as of 2026-10-27 · in force
Employer pension contribution	7.5 %Ley Nº 18.083 art. 87, as of 2026-10-27 · in force
Employer FONASA contribution	5 %Ley Nº 18.211 art. 61, as of 2026-10-27 · in force
Employee FONASA contribution, pay above 2.5 BPC with dependent children	6 %Ley Nº 18.211 art. 61, as of 2026-10-27 · in force
Employee FONASA contribution, pay above 2.5 BPC without dependent children	4.5 %Ley Nº 18.211 art. 61, as of 2026-10-27 · in force
Employee FONASA contribution, pay up to 2.5 BPC	3 %Ley Nº 18.211 art. 61, as of 2026-10-27 · in force
FONASA threshold (2.5 BPC) in 2026	17160.0 UYULey Nº 18.211 art. 61; Decreto Nº 11/026, as of 2026-10-27 · in force
Employer contribution to the Labor Credit Guarantee Fund	0.025 %Ley Nº 19.690 art. 10, as of 2026-10-27 · in force
BPC 2026	6864 UYUDecreto Nº 11/026 art. 1, as of 2026-10-27 · in force
Normal retirement age for people born in 1977 or later (30 years of service)	65 yearsLey Nº 20.130 art. 35, as of 2026-10-27 · in force
Years of service for the normal pension at the normal age	30 yearsLey Nº 20.130 art. 35, as of 2026-10-27 · in force
First pillar accrual rate per year of service at normal age	1.5 %Ley Nº 20.130 art. 46, as of 2026-10-27 · in force

The rule

1. The employee pension contribution (montepío) to the BPS is 15 percent of all pay subject to social security contributions, including rural activities.
Example: On UYU 100,000 a month the worker contributes UYU 15,000. / About US$373.Ley Nº 16.713 (Social Security), Art. 181, 1995-09-03 official text · verified 2026-10-27

2. The employer pension contribution to the BPS is 7.5 percent of all pay subject to social security contributions.
Example: On UYU 100,000 the employer pays UYU 7,500. / About US$187.Ley Nº 18.083 (Tax Reform), Art. 87, 2006-12-27 official text · verified 2026-10-27

3. Private employers pay 5 percent of pay subject to pension contributions to the National Health Fund (FONASA), plus quota complements where they apply. Workers pay 6 percent if their pay exceeds 2.5 BPC a month and they have dependent children under 18 (or older with a disability), 4.5 percent if their pay exceeds 2.5 BPC and they have no such children, and 3 percent if their pay does not exceed 2.5 BPC.
Example: With the BPC at UYU 6,864, the 2.5 BPC threshold is UYU 17,160 a month: a worker on UYU 17,000 pays 3 percent (UYU 510); a worker on UYU 50,000 with a child pays 6 percent (UYU 3,000). / UYU 17,160 is about US$427; UYU 3,000 is about US$74.60.Ley Nº 18.211 (National Integrated Health System), Art. 61, 2007-12-05 official text · verified 2026-10-27

4. Employers pay a special contribution of 0.025 percent of pay subject to contributions to finance the Labor Credit Guarantee Fund, which pays workers' credits when the employer is insolvent; the Executive may reduce or suspend it when the fund is sufficient.Ley Nº 19.690 (Labor Credit Guarantee Fund), Art. 10, 2018-10-29 official text · verified 2026-10-27

5. The Base of Benefits and Contributions (BPC), used for thresholds such as the FONASA 2.5 BPC limit and the maternity subsidy floor, is UYU 6,864 from 1 January 2026.Decreto Nº 11/026, Art. 1, 2026-01-20 official text · verified 2026-10-27 · changed: Set for 2026 by Decreto Nº 11/026.

6. Under the common pension system created in 2023, people with 30 or more years of service reach the normal retirement age at 61 if born in 1973, 62 if born in 1974, 63 if born in 1975, 64 if born in 1976 and 65 if born in 1977. People born in 1977 or later can also retire at 66 with 27 years, 67 with 24, 68 with 21, 69 with 18 or 70 with 15. Early retirement for long careers applies to people born in 1976 or later at 63 with 38 years or 64 with 35 years of effective contributions.Ley Nº 20.130 (Social Security Reform), Art. 35 and 36, 2023-05-02 official text · verified 2026-10-27

7. The first pillar pension equals the basic retirement salary times an accrual rate of 1.5 percent per year of service at the normal retirement age, rising to 1.57 percent at 66 and 1.96 percent at 70 and falling to 1.20 percent at 60, according to the age at retirement.
Example: A worker retiring at 65 with 35 years of service receives 52.5 percent of the basic retirement salary from the first pillar.Ley Nº 20.130, Art. 46, 2023-05-02 official text · verified 2026-10-27

Monthly pay (UYU)	Employer 7.5% + 5% + 0.025%	Employee 15% + FONASA	Employee FONASA rate	Total employer cost (UYU / USD)
17,000	2,129.25	3,060	3%	19,129.25 / 476
50,000	6,262.50	9,750	4.5%	56,262.50 / 1,399
100,000	12,525	21,000	6%	112,525 / 2,798

Monthly contributions on three salaries in 2026 (employee FONASA rate as stated; excludes income tax, the Labor Reconversion Fund and accident insurance premiums)

Worked example

A company hires an analyst on UYU 50,000 a month (about US$1,243) without dependent children. The employer pays UYU 6,262.50 in contributions and withholds UYU 9,750 (15 percent pension and 4.5 percent FONASA); employer cost before the year end bonus and leave is UYU 56,262.50.
A worker born in 1975 with 30 years of service reaches the normal retirement age at 63; one born in 1980 with 30 years reaches it at 65.

Step by step

1. Register the company and each worker with the BPS before work starts.
2. Determine each worker's FONASA rate from pay and family data and update it when circumstances change.
3. File the monthly BPS declaration and pay employer and employee contributions together.
4. Include the year end bonus, leave pay and other salary items in the contribution base.
5. For staff coming from countries with social security agreements, keep the certificate of coverage and check totalization rules.

Common traps

FONASA rates depend on family data: a worker who gains a child must move from 4.5 to 6 percent.
Pay items in kind or labelled as allowances can still be salary for contribution purposes; mislabelling creates back contributions.
The reform's age table depends on birth year; workers born before 1973 remain under transition rules not covered here.
The employer's 5 percent FONASA contribution is not capped by the worker's family situation.

Sources

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