Salaries earned by Uruguayan professionals: is it enough to live well?

RIO DE JANEIRO, BRAZIL – With so many Argentines dreaming of escaping the galloping inflation and constant uncertainty, the affordability of neighboring Uruguay looks like a dream come true.

Many are doing the math: How much money must you have to “cross the pond”, how much money do you need to live well in Uruguay?

All these questions come before analyzing bureaucratic procedures, visas or residency, and job searches on the other side of the Rio de la Plata. And the doubts are enhanced by the reputation of being an “expensive country” that this nation has today compared to its Latin American peers.

According to the National Statistics Institute (INE) of the neighboring country, the average household income is currently US$1,636, while the average per capita income is US$581.5.

Likewise, the INE calculated monthly Average Wage Index assured that salaries registered in October a cumulative variation in 2021 of 5.6%. In the 12 months before that, a variation of 5.64%.

In the first half of the year, poverty in Uruguay amounted to only 7.4% of households and around 10% of the people residing in the country. Only 0.2% of the population is flat broke.

These data are a general average; the salaries of professionals and executives are usually above these thresholds. Alejandro Deal, Manager at Michael Page Uruguay, told iProfesional that wages in this market start at approximately US$1,500 gross/nominal for a person with a university degree or bachelor’s degree. It is the equivalent of a household’s family salary compared to the statistics above.

“Although there is a general minimum wage, there is no minimum wage scheme for professionals. In that sense, the remuneration received will depend on the career studied, how long ago the person graduated, and how many years of work they have had, among other variables,” clarified Deal.

In this context, what is the standard of living of professional profiles? “Uruguay is an expensive country, particularly in the three basic areas of housing, food (supermarkets), and health. Although the latter is public, today 90% of professional profiles pay for it, and private health is expensive”, clarified the Michael Page manager.

However, the expert has no doubts about the possibilities of a professional living well or covering their basic needs in the sister country. “If we are talking about a professional earning a salary of US$1,500 gross/nominal, they will be able to live well by paying a low rent in a middle area of Montevideo, covering basic needs, and without any great luxuries,” he exemplified.

Looking for a job in Uruguay

For both Argentines who want to emigrate – or work remotely for an Uruguayan company – and for Uruguayans themselves looking for a change or entering the labor market, it is always easier to find a job if you know the labor market trends.

The good news is that unemployment rates have been drastically reduced with the COVID-19 vaccination, deconfinement, and the gradual reopening of borders. In the case of professionals, as calculated by Page Group, they went from 13% in the first half of 2021 to 4.3% in the second half. At the same time, searches for these profiles grew by 59.4% compared to 2020.

Deal clarified that the best-paid professions today in Uruguay are IT professionals, doctors, engineers, financial and commercial profiles in the pharmaceutical sector.

“These last two years, health professionals were the sector with the highest demand for obvious reasons, specifically Graduates in Nursing. The demand for Civil and Industrial Engineers also increased, as well as for Lawyers specialized in labor law (linked to the pandemic), Accountants and Doctors”, said Michael Page’s Manager in Uruguay.

Outside these areas, a Page Group report for this market warns that in 2022 companies will remain cautious with hiring, as many are at risk of bankruptcy after the progressive withdrawal of state aid to stay afloat amid the health crisis.

What professionals are looking for in Uruguay and how much they charge

Sourcing and procurement

For 2022, this consulting firm anticipates an aggregate demand for operations, supply, logistics, and distribution profiles. It also expects that the reactivation of activities in the Aeronautics and Automotive industries will boost the requirements of these sectors.

The most sought-after professionals by companies in supply in Uruguay will be the following:

• Purchasing Manager (paid between US$3.661 and US$6.736)
• Customer Service Coordinator (between US$2.123 and US$6.243)
• Operations Manager (between US$8.054 and US$10.983)
• Head of Foreign Trade (between US$3.368 a US$5.125)
• Logistics Manager (between US$3.221 and US$5.125)

In addition, ideal candidates are expected to have “soft” skills: adaptability to change, teamwork and team management skills, problem-solving, and effective communication.

Engineering

The sectors with the highest demand for engineers in Uruguay are:

• Automotive industry
• Agroindustry
• Durable Goods and IT sector
• Construction, Iron, and Steel industries
• Traditional and renewable energies

Within this profession, the most sought after are:

• Maintenance manager
• Engineering and planning manager
• HSE Manager
• Project manager
• Renewable energy specialist

A Plant Manager in Uruguay can earn a gross salary (without bonuses or variable remuneration or bonus) between US$4.539 and US$5.857. In contrast, a senior engineer or specialist makes between US$2.562 and US$3.807.

It is worth clarifying that, as it happens in Argentina with these scarce professionals, “they are the ones that become more difficult to get and retain, given the offer of foreign companies that offer salaries in hard currency and family relocation options”, as indicated by Page Group.

Finance and commercial

The pandemic generated an increase in searches for accounting profiles capable of analyzing data. In this context, the most sought-after positions in Uruguay continue to be the following:

• Administration and Finance Manager (earns between US$6.973 and US$11.622)
• Accounting Manager (makes between US$4.393 and US$6.590)
• Accounts Payable Manager (earns between US$2.928 and US$4.100)
• Senior Credit and Collections Analyst (ranging from US$1.903 and US$2.196)
• Senior Tax Analyst (between US$1,903 and US$2,196)

Technology

As is the case in all markets worldwide, there is no end to the demand for information technology or IT professionals. The most in-demand in Uruguay as of October 2021 were the following:

• Java and JS Developer
• Cloud Architects and Engineers
• DevOps / DevSecOps
• Project Manager
• Infrastructure Manager

However, the consulting firm only provides salary information for the most senior positions in technology. It points out that in a multinational company, a Systems or IT Manager earns between US$5,125 and US$7,688 gross and without taking into account variable allowances or bonuses.

Likewise, a Software Development Manager is paid between US$9,519 and US$10,251; his Infrastructure counterpart between US$4,832 and US$5,125; and the e-Commerce development leader, from US$7,029 to US$8,054.

Page Group detects that to make up for the shortage of IT profiles and attract these experts, some companies are reorganizing their usual salary scales and revising their employer brand proposal based on changes in their work/life balance policies, professional development programs, and training courses or training programs with recognized institutions.

“The globalization of the labor market and the possibility of being able to work abroad, charging in hard currency is one of the main reasons why the local market is in full competition, being highly demanded profiles with advanced English and knowledge in software architecture and cloud infrastructure, data engineering, cybersecurity, and artificial intelligence”, specified the consulting firm.