On January 1st 2019, the Law of incentives for employment creation will start functioning in Uruguay, announced the Ministry of Labour and Social Security, Ernesto Murro.

The law includes a USD 15 million fund to subsidy wages in order to promote new hiring and USD 5 million to create youth companies by granting discounts in social security payments.

This law is the result of joint efforts from the Ministries of Economics, Industry, Transport and Labour.

Minister Murro explained that the law “provides USD 15 million to hire new workers aged 15 to 45 years old with monthly wage subsidies of 25%”. In addition, it “subsidies   40% of the wages of new workers older than 45 years old, with a 2.5 national minimum wages cap”.

To access this benefit, companies must be in regular situation with State’s organizations in terms of payment. In addition, they must not have made dismissals or send people to the unemployment insurance during 90 days before and after hiring a worker, except for misconduct.

In addition, there is a USD 5 million fund to promote the creation of youth enterprises, and there have been changes in the Law for Youth Employment, in order to promote dual training, apprenticeships, and training practices at companies, and to provide labour intermediation services with no cost.