Uruguay

Old Age, Disability, and Survivors

Regulatory Framework

First laws: 1829 to 1934 (various laws for specified groups of workers) and 1967 (national social security institutions).

Current laws: 1995 (social insurance and individual accounts), implemented in 1996; 2007 (noncontributory pensions), implemented in 2008; 2009 (flexibility of social security); 2012 (victims of domestic violence and violent crimes); 2013 (partial pension for private workers); and 2014 (severely disabled persons).

Type of program: Social insurance, individual account, and social assistance system.

Note: The mixed social insurance and individual account system is mandatory for employed and self-employed persons born after April 1, 1956, with monthly earnings greater than 39,871 pesos and voluntary for those with monthly earnings of 39,871 pesos or less. All others are covered by the social insurance system only.

Coverage

Social insurance only: Employed and self-employed persons with monthly earnings up to 39,871 pesos, including rural and household workers.

Special systems for bank employees, notaries, university graduates, and military and police force personnel.

Social insurance and individual account: Employed and self-employed persons with monthly earnings greater than 39,871 pesos.

Voluntary coverage for employed and self-employed persons with monthly earnings of 39,871 pesos or less.

Special systems for bank employees, notaries, university graduates, and military and police force personnel.

Social assistance: Needy residents of Uruguay and victims of domestic violence or violent crimes.

Source of Funds

Insured person

Social insurance only: 15% of gross monthly earnings of up to 39,871 pesos.

The insured person's contributions also finance cash sickness benefits.

Social insurance and individual account: 15% of the first 39,871 pesos of gross monthly earnings to social insurance; 15% of gross monthly earnings above 39,871 pesos to the individual account. For the voluntarily insured, 7.5% of the first 39,871 pesos of gross monthly earnings to social insurance; 7.5% of gross monthly earnings above 39,871 pesos to the individual account.

The insured's contribution to the individual account includes an average 1.735% of covered earnings for disability and survivor insurance and an average of 1.328% of covered earnings for administrative fees.

The maximum monthly earnings used to calculate contributions are 119,612 pesos.

Earnings used to calculate contributions are adjusted according to changes in the average wage index.

The insured person's contributions also finance cash sickness benefits.

Social assistance: None.

Self-employed person

Social insurance only: 15% of gross monthly earnings of up to 39,871 pesos.

The self-employed person's contributions also finance cash sickness benefits.

Social insurance and individual account: 15% of the first 39,871 pesos of gross monthly earnings to social insurance; 15% of gross monthly earnings above 39,871 pesos to the individual account. For the voluntarily insured, 7.5% of the first 39,871 pesos of gross monthly earnings to social insurance; 7.5% of gross monthly earnings above 39,871 pesos to the individual account.

The self-employed person's contribution to the individual account includes an average of 1.735% of covered earnings for disability and survivor insurance and an average of 1.328% of covered earnings for administrative fees.

The maximum monthly earnings used to calculate contributions are 119,612 pesos.

Earnings used to calculate contributions are adjusted according to changes in the average wage index.

The self-employed person's contributions also finance cash sickness benefits.

Social assistance: None.

Employer

Social insurance only: 7.5% of covered payroll. Additional contributions for hazardous occupations.

The employer's contributions also finance cash sickness benefits.

Social insurance and individual account: None.

Social assistance: None.

Government

Social insurance only: Any deficit; pays the total cost of noncontributory benefits; contributes as an employer.

Social insurance and individual account: None.

Social assistance: The total cost.

Qualifying Conditions

Old-age pension

Old-age pension (social insurance): Age 60 with at least 30 years of contributions. Women are credited with one year of contributions for each child (biological or adopted), up to five years. Additional years of contributions are credited to workers in hazardous occupations.

Deferred pension: The pension may be deferred with at least 35 years of contributions.

Old-age pension (individual account): Age 60 with at least 30 years of contributions; age 65 with no contribution requirement.

Advanced-age pension (social insurance and individual account): Age 70 with at least 15 years of contributions. Age requirements are reduced according to the number of years worked, from age 69 with at least 17 years of contributions to age 65 with at least 25 years of contributions. Employment must cease.

Partial pension (social insurance): Paid to persons who reduce their working hours or return to work on a part-time basis after reaching pensionable age.

Old-age supplement (social insurance): Paid if the insured's income and household average per capita income are up to 10,743 pesos a month.

Special pension for persons who suffered political persecution (social insurance): Paid to persons aged 60 or older with at least 10 years of service who were exiled, in prison, clandestine, or dismissed from their job for political reasons at any time from February 9, 1973, to February 28, 1985.

Noncontributory old-age pension (social assistance, means tested): Age 70, assessed as needy, and a resident of Uruguay for at least 15 years; or aged 65 to 70 and living in households assessed as having critical shortages for meeting basic needs.

Special pension for persons who suffered political persecution (social assistance): Paid to persons incarcerated for at least a year for political or union-related reasons from February 9, 1973, to February 28, 1985.

Disability pension

Permanent disability pension (social insurance and individual account): Assessed with at least a 66% degree of disability and incapable of any work. There is no minimum qualifying period for a disability resulting from an accident. Otherwise, workers aged 25 or older must have at least two years (six months if younger than age 25) of covered employment before the disability began. Coverage is extended two years after employment ceases if the insured has at least 10 years of contributions.

Special allowances: Paid to low-income persons according to assessed need for transportation and other costs related to attending special education institutions.

Partial disability benefit (social insurance and individual account): Assessed with a 50% to 66% degree of disability and incapable of work in the current job. There is no minimum qualifying period for a disability resulting from an accident. Otherwise, workers aged 25 or older must have at least two years (six months if younger than age 25) of covered employment before the disability began. The benefit is temporary and subject to reassessment of the incapacity for work.

District medical commissions of the Social Security Bank assess the degree of incapacity for work.

Noncontributory disability pension (social assistance, means tested): Assessed as needy with a total and permanent disability and a resident of Uruguay for at least 15 years.

Disability pension for victims of violent crimes (social assistance): Assessed with a total disability and incapacity for any work resulting from being a victim of a violent crime.

Attendance allowance (social assistance): Paid to old-age pensioners assessed with a severe disability who require the attendance of others at least 70 hours a month to perform daily functions.

Survivor pension

Survivor pension (social insurance and individual account): The deceased was working; received or was entitled to receive an old-age or disability pension, or sickness, maternity, work injury, or unemployment benefits; or died in the 12-month period after the unemployment benefit ceased. Coverage is extended for up to 12 months after employment ceases; no limit with at least 10 years of contributions.

Eligible survivors include a widow(er) or partner (same sex or opposite sex), divorced spouse (same sex or opposite sex), unmarried orphans up to age 21 (no limit if disabled), and dependent, disabled parents. A widow or female partner must have average monthly earnings of no more than 119,612 pesos in the 12 months before the insured's death. A widower or male partner must have monthly income of no more than 68,776 pesos: with monthly income up to 7,692 pesos, the pension is paid automatically; with monthly income greater than 7,692 pesos and less than 32,096 pesos, must prove economic dependence on the deceased.

Noncontributory survivor pension (social assistance, means tested): The deceased received or was entitled to receive a noncontributory old-age or disability pension.

Funeral grant: Paid to the person who pays for the funeral.

Old-Age Benefits

Old-age pension (social insurance): 45% of the insured's monthly average earnings in the last 10 years or 45% of 105% of the insured's monthly average earnings in the best 20 years of earnings (whichever is lower) is paid. The pension is increased by 1% for each year of work from 30 to 35 years; 0.5% for each year of work exceeding 35 years, up to 2.5%; and 2% for each year of work after age 60 if the contribution conditions were not met, up to age 70 or until contribution requirements are met.

Deferred pension: The pension is increased by 3% for each year of work after age 60 with at least 35 years of work, up to 30%; 2% if the insured has less than 35 years of work, up to age 70 or until contribution requirements are met.

The minimum monthly pension is 7,630 pesos.

The maximum monthly pension is 32,893 pesos (social insurance and individual account) or 48,642 pesos (social insurance only).

The pension is payable abroad under reciprocal agreement.

Benefit adjustment: Benefits are adjusted according to changes in the average wage index.

Old-age pension (individual account): The insured must purchase an annuity from an insurance company.

The pension is payable abroad under reciprocal agreement.

Advanced-age pension (social insurance): 50% of the insured's monthly average earnings in the last 10 years plus 1% for each year of work exceeding the respective minimum years of service (from 15 to 25 minimum years), up to 14%, is paid.

The minimum monthly pension is 7,630 pesos.

The maximum monthly pension is 32,893 pesos (social insurance and individual account) or 48,642 pesos (social insurance only).

Advanced-age pension (individual account): The insured must purchase an annuity from an insurance company.

The pension is payable abroad under reciprocal agreement.

Partial pension (social insurance): 50% of the old-age pension the insured received or would have been entitled to receive is paid.

The pension is payable abroad under reciprocal agreement.

Benefit adjustment: Benefits are adjusted according to changes in the average wage index.

Old-age supplement (social insurance): 1,836 pesos a month is paid.

Special pension for persons who suffered political persecution (social insurance): At least 12,208 pesos a month is paid.

Noncontributory old-age pension (social assistance, means tested): 7,692 pesos a month is paid.

Special pension for persons who suffered political persecution (social assistance): 25,942 pesos a month is paid.

Benefit adjustment: Benefits are adjusted according to changes in the average wage index.

Permanent Disability Benefits

Permanent disability pension (social insurance): 65% of the insured's average indexed earnings in the 20 years before the disability began or the total number of years worked (whichever is less) is paid.

Special allowances: A monthly allowance of 1,878 pesos is paid for transportation costs and 3,957 pesos for rehabilitation costs.

Partial disability benefit (social insurance): 65% of the insured's average indexed earnings in the 20 years before the disability began or the total number of years worked (whichever is less) is paid for up to three years.

The minimum monthly benefit is 7,722 pesos.

The maximum monthly benefit is 32,893 pesos.

Benefits are payable abroad under reciprocal agreement.

Benefit adjustment: Benefits are adjusted according to changes in the average wage index.

Permanent disability pension (individual account): 45% of the insured's average indexed earnings in the 10 years before the disability began is paid. The individual account balance is transferred to an insurance company, which pays the pension.

Partial disability benefit (individual account): 45% of the insured's average indexed earnings in the 10 years before the disability began is paid by disability insurance for up to three years.

Noncontributory means-tested disability pension (social assistance): 7,692 pesos a month is paid.

Disability pension for victims of violent crimes (social assistance): 18,312 pesos a month is paid.

Attendance allowance (social assistance): 6,000 pesos a year is paid.

Benefit adjustment: Benefits are adjusted according to changes in the average wage index.

Survivor Benefits

Survivor pension (social insurance and individual account): 66% to 75% of the old-age or disability pension the deceased received or was entitled to receive is paid, according to the number of survivors.

100% of the old-age or disability pension the deceased received or was entitled to receive is split among the widow(er), divorced spouses, and partners (same sex or opposite sex) with at least five years of cohabitation with the insured if there are no other eligible survivors; 70% if there are eligible orphans; 60% if there are other eligible survivors but no eligible orphans. The remainder is split equally among other eligible survivors. If there is no widow(er) or a divorced spouse, 100% of the pension is split equally among other eligible survivors.

The pension ceases if the widow(er) or divorced spouse remarries.

For the survivors of a member of an individual account scheme, the accumulated capital in the individual account (contributions plus accrued interest) is transferred to an insurance company, which pays the pension.

Survivor pensions are payable abroad under reciprocal agreement only.

Benefit adjustment: Benefits are adjusted according to changes in the average wage index.

Noncontributory means-tested survivor pension (social assistance): 7,692 pesos a month is paid.

Funeral grant: The cost of the funeral is paid, up to 18,518 pesos.

Administrative Organization

Ministry of Labor and Social Security (http://www.mtss.gub.uy) provides general supervision.

Social Insurance Bank (http://www.bps.gub.uy) supervises and administers the social insurance program.

Central Bank of Uruguay (http://www.bcu.gub.uy) oversees pension fund management companies and insurance companies.

Pension fund management companies manage the individual accounts.

Sickness and Maternity

Regulatory Framework

First laws: 1958 (maternity benefits) and 1960 (sickness benefits for construction workers).

Current laws: 1975 (sickness), 1980 (maternity), 1981 (maternity), 1995 (pensioners), 1999 (maternity), 2007 (national health fund), 2008 (national integrated health system), 2011 (incorporation schedule), and 2012 (benefit calculation).

Type of program: Social insurance system.

Coverage

Cash sickness benefits: Employed persons.

Cash maternity benefits: Benefits are provided under Family Allowances.

Medical benefits: Public- and private-sector employed persons, self-employed persons, persons receiving unemployment benefits, employers with up to five employees, and pensioners. Must reside in Uruguay.

Exclusions: Workers with less than 13 days a month of covered work with earnings less than 3,815 pesos a month.

Special systems for military and police force personnel, and local government employees.

Source of Funds

Insured person

Cash sickness benefits: See source of funds for Old Age, Disability, and Survivors.

Medical benefits: 3% to 8% of gross earnings. Small business owners with up to one employee contribute 1,885 pesos (for an employee without children) or 2,579 pesos (with children).

Self-employed person

Cash sickness benefits: See source of funds for Old Age, Disability, and Survivors.

Medical benefits: 1,885 pesos (for an employee without children) or 2,579 (with children).

Employer

Cash sickness benefits: See source of funds for Old Age, Disability, and Survivors.

Medical benefits: 5% of payroll, plus additional premiums.

Government

Cash sickness benefits: Any deficit; contributes as an employer.

Medical benefits: Any deficit; the total cost of public health services for all residents of Uruguay.

Qualifying Conditions

Cash sickness benefits: The insured must have at least three months of contributions or 75 days of contributions in the last 12 months.

Cash maternity benefits: See Family Allowances.

Medical benefits: Must work at least 13 days a month or have earnings of at least 3,815 pesos a month.

Sickness and Maternity Benefits

Sickness benefit: 70% of the insured's earnings is paid after a three-day waiting period (no waiting period for hospitalization) for up to a year; may be extended for an additional year.

The minimum monthly benefit is 6,104 pesos.

The maximum monthly benefit is 28,655 pesos.

Maternity benefit: See Family Allowances.

Workers' Medical Benefits

Medical services are available through mutual health institutions. Medical services include medical assistance, surgery, and pharmaceutical products.

Mutual health institutions provide grants for eyeglasses, contact lenses, prostheses, orthopedic appliances, wheelchairs, and psychiatric hospitalization.

Maternity care is provided for insured women under Family Allowances.

The Ministry of Public Health provides free public health care to all residents through public hospitals and clinics.

Dependents' Medical Benefits

Medical benefits for dependents are the same as those for the insured.

Eligible dependents include an uninsured spouse and children younger than age 18 (no limit if disabled).

The Ministry of Public Health provides free public health care to all residents through public hospitals and clinics.

Administrative Organization

Ministry of Public Health (http://www.msp.gub.uy) implements the Integrated National Health System.

Social Insurance Bank (http://www.bps.gub.uy) collects contributions, supervises, and administers cash benefits.

National Health Board (JUNASA) supervises and administers the health insurance program through mutual health institutions.

Collective medical assistance and mutual health institutions provide medical benefits.

Work Injury

Regulatory Framework

First law: 1914.

Current law: 1989 (work injury).

Type of program: Compulsory insurance through a public carrier.

Coverage

Private-sector employees, including agricultural workers; certain public-sector workers; and apprentices.

Exclusions: Self-employed persons, professional athletes, and actors.

Special system for military and police personnel.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: The total cost, which varies according to the assessed degree of risk.

Government: None.

Qualifying Conditions

There is no minimum qualifying period. Accidents that occur while commuting to and from work are not covered. Occupational diseases are covered, according to a schedule in law.

Temporary Disability Benefits

66% of earnings before the disability began is paid. (For casual workers, the benefit is the insured's total adjusted earnings in the last six months divided by 150.) The daily benefit is paid retroactively after a four-day waiting period for the duration of the disability.

The minimum monthly benefit is 3,052 pesos.

For an occupational disease, 100% of earnings before the disease was diagnosed is paid. There is no waiting period.

An additional benefit of 3.607% of earnings is paid under sickness benefits.

Benefit adjustment: Benefits are adjusted according to the average wage index.

Permanent Disability Benefits

Permanent disability pension: For an assessed degree of disability of at least 20%, the monthly pension is the insured's monthly loss of earnings.

Constant-attendance supplement: 115% of the insured's earnings before the disability began is paid if the insured needs the constant attendance of others to perform daily functions.

For an assessed degree of disability of 10% to 19%, a lump sum of 36 times the insured's monthly loss of earnings is paid; for an assessed degree of disability less than 10%, a benefit is paid only if the assessed disability is the result of repeated accidents.

The Social Insurance Bank assesses the degree of loss of earnings.

Benefit adjustment: Benefits are adjusted according to the civil servants' average wage index.

Workers' Medical Benefits

The National Insurance Bank provides medical services. Benefits include medical, surgical, and dental care; hospitalization; medicine; and appliances.

There is no limit to duration.

Survivor Benefits

Survivor pension: 75% of the deceased's earnings is paid to a widow(er), divorced spouse, or partner (same sex or opposite sex) with dependents. The widow(er) must have been married to the deceased for a year at the time of death; a partner must have cohabited with the deceased for at least five years. If the only eligible survivors are the divorced spouse or dependent parents of the deceased, the benefit is 50% of the deceased's earnings.

Orphan's pension: If there are no other eligible survivors, 66% of the deceased's earnings is paid.

For survivors of a member of an individual account scheme, the individual account balance is transferred to an insurance company, which pays the pension.

Benefit adjustment: Benefits are adjusted according to the average wage index.

Administrative Organization

Social Insurance Bank (http://www.bps.gub.uy) supervises and administers benefits.

National Insurance Bank (http://www.bse.com.uy/inicio) provides medical services.

Unemployment

Regulatory Framework

First law: 1934.

Current laws: 1981 (industry and commerce), 2001 (rural workers), 2002 (contracts), 2006 (household workers), 2008 (late career unemployment), and 2012 (benefits calculation).

Type of program: Social assistance system.

Coverage

Private-sector employees in industry and commerce, rural workers, professional athletes, and household workers.

Special system for bank employees.

Exclusions: Self-employed persons.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: None.

Government: The total cost.

Qualifying Conditions

Must have at least 180 days of work in the 12-month period before unemployment began; workers paid at irregular intervals must have at least 150 days of work in the 12-month period before unemployment began; and workers with irregular income must have worked 180 days and earned at least 21,486 pesos in the 12-month period before unemployment began.

Rural workers paid monthly must have at least 12 months of work in the 24-month period before unemployment began; rural workers paid at irregular intervals must have 250 days of work in the 24-month period before unemployment began; and workers with irregular income must have earned at least 42,970 pesos in the 24-month period before unemployment began.

Household workers must be registered with at least six months of work in the 12-month period before unemployment began (if paid monthly); with at least 12 months in the 24-month period before unemployment began (if paid at irregular intervals); or with at least 150 days in the 12 months or 250 days in the 24 months of work before unemployment began (if paid daily or weekly).

Unemployment must not be the result of dismissal for disciplinary reasons.

Partial unemployment benefit: Paid to workers paid daily or at irregular intervals if working time is reduced by 25% or more relative to the legal or usual working time.

Dependent's supplement: Paid if the unemployed person is married, has children younger than age 21 (any age if disabled), or has disabled dependents.

There is a 12-month waiting period before a new claim for unemployment benefits can be made.

Unemployment Benefits

For full unemployment, a sequence of monthly payments of 66%, 57%, 50%, 45%, 42%, and 40% of the insured's average earnings in the six months before unemployment is paid to workers paid monthly or at irregular intervals; a monthly benefit of 12 days of earnings before unemployment for workers who are paid daily. For workers aged 58 or older with at least 28 years of contributions, 40% of the insured's average earnings in the six months before unemployment is paid.

Partial unemployment benefit: The monthly benefit is the insured's earnings before partial unemployment minus the value of current monthly earnings.

Benefits are paid for up to six months (up to one year for workers aged 50 or older), and for up to two years for workers aged 58 or older with at least 28 years of contributions.

Dependent's supplement: 20% of the benefit is paid.

The minimum monthly unemployment benefit is 3,581 pesos.

The maximum monthly unemployment benefit is 39,397 pesos.

Administrative Organization

Ministry of Labor and Social Security (http://www.mtss.gub.uy) provides general supervision.

Social Insurance Bank (http://www.bps.gub.uy) supervises and administers the unemployment insurance program.

Family Allowances

Regulatory Framework

First law: 1943.

Current laws: 1995 (social security), 2002 (multiple pregnancies), 2008 (equity in family allowances), 2012 (benefit calculation), and 2013 (paternity allowance).

Type of program: Social assistance system.

Coverage

Needy private-sector employees, household workers, persons receiving unemployment benefits, newspaper vendors, small rural products vendors, and pensioners.

Children of vulnerable families or who are enrolled full time in activities organized by the Institute for Children and Adolescents (INAU).

Exclusions: Self-employed persons.

Special system for civil servants.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: None.

Government: The total cost.

Qualifying Conditions

Family allowances: The child must be younger than age 14 (age 18 if a student, no limit if disabled). The benefit is paid from the day the pregnancy is confirmed.

Parents or guardians may earn up to 35,816 pesos and still receive family allowances. For parents with three or more children, the earnings limit is increased by 3,582 pesos for each additional dependent child.

Special allowances: Paid to persons with disabled children according to the assessed need for transportation and other costs related to attending special education institutions.

Cash maternity benefit: Paid for the birth of a child.

Multiple birth allowance: Paid to a pregnant woman expecting more than two children from the day the pregnancy is confirmed.

Special paid leave: Paid to a salaried worker who adopts a child.

Vulnerable family allowance (means tested, social assistance): Paid from the birth of the child until age 14 if in primary school, age 16 if the child could not finish primary school for justified reasons, or age 18 if in higher education (no limit if disabled).

Family Allowance Benefits

Family allowances: 570 pesos is paid for each child for covered families with income up to 21,485 pesos; 285 pesos with income from 21,485 pesos to 35,816 pesos (higher for families with three or more children). The allowance is doubled for children with disabilities.

For a multiple birth, the allowance is paid at three times the standard rate until the children reach age 5, at twice the standard rate until age 12, and at the standard rate until age 18.

The benefit is paid every two months.

Special allowances: A monthly allowance of 1,878 pesos is paid for transportation costs and 3,957 pesos for rehabilitation costs.

Cash maternity benefit: 100% of average earnings in the last six months is paid on the expected date of childbirth for the 12 weeks including six weeks before and six weeks after the expected date of childbirth (gradually rising to a total of 14 weeks by 2016).

Employers are required to provide three days of paid paternity leave (gradually rising to 13 days by 2016).

Multiple birth allowance: The allowance is paid at three times the family allowance standard rate until the children reach age 5, at twice the standard rate until age 12, and at the standard rate until age 18. The benefit is paid every two months.

Special paid leave: Private-sector workers receive benefits equal to six months of the cash maternity benefit.

Vulnerable family allowance (means tested, social assistance): 1,187 pesos is paid for a child in primary school and 1,696 pesos for a child in secondary school or with a disability; 1,187 pesos for children enrolled full time in INAU activities.

In-kind benefits include pediatric care for children up to age 6, dental care for children up to age 9, and medical specialist care and transportation for children up to age 14. Free medical examinations and medicine for children.

The benefit is paid monthly.

Benefit adjustment: Benefits are adjusted according to the consumer price index and an adjustable reference unit set by decree.

Administrative Organization

Social Insurance Bank (http://www.bps.gub.uy) supervises and administers benefits.

Ministry of Social Development (http://www.mides.gub.uy) supervises and administers social assistance benefits.

Collective medical assistance and mutual health institutions contracted by the Social Insurance Bank provide medical benefits.