On 17 March 2026, the Senate of Uruguay (Cámara de Senadores) approved the Social Security Agreement between the Oriental Republic of Uruguay and the Republic of Finland, which was signed in Montevideo on 7 October 2025, together with its Administrative Agreement.1
WHY THIS MATTERS
The approval of this bilateral Social Security Agreement facilitates coordination between the social security systems of Uruguay and Finland. Mobile employees may gain improved access to social security benefits, including pensions, through the recognition of contribution periods completed in both jurisdictions.
For employers, this development may affect the management of cross‑border assignments by helping to reduce potential double social security contributions and by clarifying applicable coverage periods. The agreement may also provide greater certainty for workforce mobility planning involving Uruguay and Finland.
Key Highlights
- The Social Security Agreement between Uruguay and Finland was approved by the Uruguayan Senate on 17 March 2026.
- The agreement coordinates the social security systems of both countries and applies to covered social security schemes in each jurisdiction.
- It is designed to help avoid situations in which employees and employers would otherwise be required to contribute to both countries’ social security systems for the same period of work.
- Employees’ contribution periods completed in Uruguay and Finland may be totalized for purposes of benefit eligibility, such as pensions.
- An Administrative Agreement accompanies the treaty to support implementation and facilitate administrative coordination between the competent authorities.
KPMG INSIGHTS
In light of this development, the organisations may wish to consider the following:
- Reviewing international assignment structures and payroll arrangements involving Uruguay and Finland to assess alignment with the new agreement.
- Communicating the potential implications of the agreement to affected employees and updating assignment policies and procedures, when appropriate.
- Evaluating how the agreement may influence workforce mobility planning and social security contribution obligations for employees working between the two countries.
If assignees and/or their programme managers have any questions or concerns about the scope of the update, its application and potential impacts, and appropriate next steps, they should consult with their qualified tax professional or a member of the GMS tax team with KPMG in Uruguay (see the Contacts section).
ENDNOTE:
1 Parlamento de la República Oriental del Uruguay (in Spanish), “Convenio de seguridad social entre la República Oriental del Uruguay y la República de Finlandia, y su acuerdo administrativo. Aprobación,” published on 20 January 2026.
Contacts
Disclaimer
The information contained in this newsletter was submitted by the KPMG International member firm in Uruguay.
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