On 10 June 2026, the Uruguayan Senate approved the Australia–Uruguay Social Security Agreement (2025), which aims to coordinate social security coverage between the two countries. The agreement is pending further approval by the Chamber of Representatives and is not yet in force.1
WHY THIS MATTERS
The proposed agreement is significant for employers, globally mobile employees, and HR and payroll managers overseeing cross-border assignments between Australia and Uruguay. Once implemented, it is expected to help avoid double social security contributions for employees temporarily assigned between the countries and facilitate the export and totalisation of certain social security benefits. This may help reduce assignment costs, simplify compliance, and improve benefit protection for mobile workforces.
For mobile employees, the agreement offers assurance that coverage periods in both countries are expected to be recognized, supporting eligibility for pensions and related benefits, and providing greater certainty regarding entitlements during or after international assignments.
Key Highlights
The Australia–Uruguay Social Security Agreement (2025), approved by the Uruguayan Senate on 10 June 2026 and pending further legislative steps, introduces a framework to protect mobile workers from double social security contributions and coordinate pension entitlements between the two countries. The agreement will enter into force after ratification by both countries and the exchange of diplomatic notes.
- Scope of coverage: Applies to persons who are or have been subject to the social security legislation of either country, and their dependents and survivors.
- Avoidance of double contributions: Employees, employers, and self-employed persons are expected to be subject to the social security legislation of only one country at a time, based on the location and nature of work.
- Detached worker provisions: Employees temporarily assigned (up to four years) from one country to the other may remain covered under their home country's system, avoiding host country contributions.
- Benefit export and totalisation: Eligible benefits (such as pensions) may be paid abroad, and periods of coverage in both countries may be combined (totalised) to help meet minimum qualifying conditions.
- Administrative cooperation: The agreement provides for mutual assistance, information exchange, and simplified procedures for claims and certification, as well as exemption from certain fees and document authentication requirements.
- Status: The agreement is not yet in force. Further approval from Uruguay’s Chamber of Representatives and completion of ratification procedures by both countries is required.
KPMG INSIGHTS
In light of the update, entities might wish to consider the following:
- Organizations could review current and planned assignments between Australia and Uruguay to identify cases that could benefit from the agreement’s provisions.
- In preparation for its entry into force, companies could coordinate with payroll and mobility teams to update assignment policies and inform affected employees.
- HR leaders could consider tracking the legislative process to anticipate the effective date and support timely compliance.
The agreement is not yet effective; it requires approval by Uruguay’s Chamber of Representatives and ratification by both countries. The effective date will be the first day of the third month following the exchange of diplomatic notes confirming completion of internal procedures.
If assignees and/or their programme managers have questions about how this development may affect them, they should contact their usual KPMG adviser or a member of the GMS team in Uruguay (see the Contacts section).
ENDNOTE:
1 Parlamento de la República Oriental del Uruguay (in Spanish), “Carpeta Nº 532 de 2026 - Repartido Nº 330,” published in June 2026.
Contacts
Disclaimer
The information contained in this newsletter was submitted by the KPMG International member firm in Uruguay.
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