Basic (01-19)

GN 01760.010 Overview of the Uruguayan Social Security System

The Uruguayan social security system provides old-age retirement, disability, and survivor benefits.

The Uruguayan statutory pension system is a three-pillar structure.

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  The first pillar is a non-contributory means tested social assistance payment for low income workers, financed by general government revenues. It is a flat-rate benefit adjusted downward as a person’s retirement income increases. First pillar benefits are not included within the scope of this agreement.

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  The second pillar provides benefits on the basis of old age, disability, and death, financed on a pay as you go basis. Second pillar benefits are included within the scope of this agreement.

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  The third pillar is a mandatory, fully-funded system invested in individual pension funds. This system is mandatory for all wage earners or self-employed persons in Uruguay who earn over a statutorily defined limit. Third pillar benefits are included within the scope of this agreement.