Social security agreement between Finland and Uruguay to facilitate mobility between the countries

Finland and Uruguay have signed a social security agreement between the two countries in Montevideo on 7 October 2025. As regards Finland, the agreement applies to the earnings-related pension scheme, and as regards Uruguay, to the pension schemes for employees.

In recent years, an increasing number of Finnish workers have been posted to Uruguay as a result of forest industry investments, for example. As mobility between the two countries has increased, so has the need to conclude a joint social security agreement.

Finnish employers have been forced to pay double pension contributions in respect of workers posted to Uruguay. However, under the new social security agreement, workers posted from one country to the other will in future be covered by earnings-related pension insurance in the country of origin and they will be exempt from pension contributions in the target country.

The agreement will also ensure the payment of accrued earnings-related pensions from one country to the other. In Uruguay, people become eligible for an old-age pension after 30 years of employment. Therefore, those who have worked in Uruguay for less than 30 years do not receive earnings-related pension from the country. Under the new agreement, Uruguay will also take into account any periods of employment in Finland. This means that people could be eligible for a pension even if they had not worked in Uruguay for the required 30 years. The Finnish legislation on earnings-related pensions does not include any provisions on such required periods of employment.

The agreement also contains provisions on procedures for making pension claims and on cooperation between the competent authorities and institutions.

The social security agreement applies to employment-based pensions in both countries and covers both employees and self-employed persons.

The agreement will enter into force when it has been ratified by both countries. Its entry into force in Finland is subject to approval by Parliament. The preparation of the matter is proceeding, and the Ministry of Social Affairs and Health is perapring a government proposal on the approval of the agreement.

Inquiries: 

Silja Dahlgren, Legal Adviser, tel. +358 295 163 391, [email protected] 
Henna Huhtamäki, Director, tel. +358 295 163 072, [email protected]