Innovations in extending social insurance coverage to independent workers
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category of ―social Monotributo‖, the workers included on the National Register of
Promoters of Local Development and Social Economy of the Ministry of Social Development are exempt from contributing to the retirement pension, and pay 50 per cent
of the contribution for social works, U35 by registration holder, and the same amount for each covered family member.
11.2.8. Type of retirees authorized to register as a contributor tp the Monotributo scheme
Before the reform of the scheme, retirees from industry and trade could not be Monotributo contributors. Now, they are eligible for coverage in the following cases:
1 If the retiree was a bank employee, a notary, a military or a police officer, he may register in the Monotributo scheme regardless of the amount of the benefit he receives
from his Fund, because the benefit he receives is not borne by the BPS. 2 Should he be a BPS retiree, he may register in the following situations: retiree by civil
and rural contribution, and by domestic service. In such cases, neither the amount nor the type of received benefit is relevant, since it is a benefit for an activity borne by the
BPS, but with a different registration from industry and trade.
3 In case the retiree has worked in the industry or trade, and he is the owner of a common retirement or retirement due to old age, he may register, provided that the
activity he has retired from is not the same activity he wishes to develop in the Monotributo scheme, and that he simultaneously fulfils the following obligations: i
to own a retirement pension not exceeding three Benefits and Contributions Bases BPC, and ii to integrate a family household in which each members average
income does not exceed three BPC. All incomes are considered to this end, with the exception of those generated by Citizens Incomes, Family Benefits, and
Unemployment Insurances motivated by the workers dismissal.
4 Retirees who wish to register in the Monotributo scheme may do so as a one-person business owner, a co-working spouse or cohabiting partner, or as a partner in a
partnership company, provided heshe meets all the general conditions. Table 17, below, summarizes the changes introduced in the Monotributo scheme.
Table 19. Uruguay: Summary of changes to the Monotributo scheme
Variable Previous conditions according to
Law 17.296, of 210201, and complementary legislation
Current conditions according to Law 18.083 of 271206, and complementary legislation
1. Type of allowed companies
One-person businesses with a small economic size, with a maximum
number of four workers including the owner of the one-person business, and
heher co-working spouse or cohabiting partner, when applicable.
One-person businesses with or without co-working spousecohabiting partner with only one dependent worker.
“De facto” non-family companies formed by a maximum of two partners, without dependents.
“De facto” family companies with affinities up to the 4th degree of consanguinity or up to the 2nd degree, provided they do not
exceed three partners, and with no dependents. All of them having a small economic size. The Executive Power has the
possibility to include up to three dependents in the previous definitions in the case of seasonal or fixed activities.
