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Employer Action Code: Act
Retirement legislation modified
A new law approved on October 19, 2008 reduced the requisite minimum working years for employees to retire in Uruguay. The legislation also introduced special compensation for older retirees, new requirements to obtain disability pensions and special maternity benefits. Most of the changes will take effect in February 2009.
Key Details
The main amendments introduced by the law are the following:
- As of July 1, 2009, the mandatory number of years worked to retire will decrease from 35 to 30. The minimum retirement age will remain unchanged at 60 years.
- Workers who are 65 years old and have worked for more than 25 years will be granted an advance age pension, equivalent to 50 percent of their salary. This compensation will be calculated as an average of their last three years’ wages. Those older than 65 will need fewer years of work activity to qualify for the same pension.
- In order to retire on the basis of a work-related disability, workers will no longer be required to have worked for six months prior to the injury.
- When calculating the number of years to retirement for women, an additional working year will be added for each child they have, up to a maximum of 5 years.
December,
2008
The information included in this report is general information only and should not be relied upon without further review by the appropriate professional advisers. Watson Wyatt is not a law firm or an accounting firm and is not engaged in providing legal, accounting or tax services or advice.
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