Severance pay in Uruguay 2026: notice, severance and unemployment benefit
When a job ends in Uruguay, the calculator above estimates the statutory severance pay, the notice period, the payment for unused leave and the unemployment benefit, with the tax on each part. Below you will find the rules in brief and examples for different lengths of service.
The rules in brief
- Dismissal and unemployment: A dismissed monthly-paid employee receives one month’s pay for each year or part year of service, up to 6 months, tax-free; there is no notice period. Unemployment insurance pays monthly-paid workers 66% of their average pay in the first month, falling to 40% in the sixth, after at least 6 months of contributions in the last 12.
Example: UYU 70,000 gross a month
| Years of service | Severance, net (UYU) | Notice period |
|---|---|---|
| 1 | 70,000 | No legal notice period |
| 2 | 140,000 | No legal notice period |
| 3 | 210,000 | No legal notice period |
| 5 | 350,000 | No legal notice period |
| 10 | 420,000 | No legal notice period |
| 15 | 420,000 | No legal notice period |
| 20 | 420,000 | No legal notice period |
| 25 | 420,000 | No legal notice period |
Case: “Dismissed”, leaving on 31 December 2026, without unused leave. These are legal minimums; a contract or collective agreement may give more.
What you receive: an example
With 9.8 years of service and 10 days of unused leave, ending on 31 December 2026:
| Item | Gross (UYU) | Net (UYU) |
|---|---|---|
| Dismissal compensation (one month’s pay per year or part year, at most 6; not taxed) | 420,000.00 | 420,000.00 |
| Unused leave (5 days) | 17,500.00 | 11,944.80 |
| Total | 437,500.00 | 431,944.80 |
Unemployment benefit
In this example the unemployment benefit comes to about UYU 210,000 in total (Unemployment insurance for 6 months: 66% of your average pay in the first month, falling to 40% in the sixth, if you contributed for at least 6 months in the last 12). The conditions, such as the contributions you need, are listed in the rules above.
Frequently asked questions
How much severance do I get after 10 years in Uruguay?
About UYU 420,000 net with UYU 70,000 gross a month, for “Dismissed”. The notice period is No legal notice period.
How long is the notice period?
In the example: No legal notice period, whatever the length of service. A contract can require more.
Do I get unemployment benefit?
In the example, about UYU 210,000 (Unemployment insurance for 6 months: 66% of your average pay in the first month, falling to 40% in the sixth, if you contributed for at least 6 months in the last 12). The conditions are listed in the rules above.
Are these amounts exact?
They are estimates of the legal minimum under the 2026 rules. Your contract, a collective agreement or a court decision can give more.
Rules and official sources: see “Rules applied (2026)” above. Last checked: October 2026. The amounts are estimates for information, not financial or legal advice.