Unions and business chambers signed a new collective agreement for the retail sector in Uruguay, valid for 24 months and featuring four semi-annual salary adjustments. The agreement includes a peace clause and improvements in care and mental health leave.
Representatives from unions and business chambers in Uruguay sealed a new collective agreement for the retail sector this Thursday, which will be in effect from January 1, 2026, to December 31, 2027. The agreement, reached within the framework of the Ministry of Labour and Social Security (MTSS), includes four semi-annual salary adjustments and a peace clause to prevent labour conflicts.
The president of the Uruguayan Federation of Commerce and Services Employees (Fuecys), Miriam Borba, confirmed the finalisation of the pact, which was signed by the coordinator of the sector's unions — which groups 22 unions — the Chamber of Importers of Footwear and Textiles, and the National Chamber of Commerce and Services of Uruguay (CNCyS). The negotiation is part of the eleventh round of the Wage Councils of group 10, subgroup 01 “General Commerce”.
The salary increases will be applied on January 1 and July 1 of 2026, and on the same dates in 2027. For the sector, a 0.625% increase was agreed, from which the final corrective of the tenth round, equivalent to 0.79%, will be deducted, resulting in an initial negative adjustment of -0.16%. According to the MTSS record, this corrective will only be deducted from those earning more than 40,672 nominal pesos per month for 44 hours of work (the salary of a top salesperson) as of December 31, 2025.
The agreement classifies workers into three levels (I, II, and III), with staggered increases granting higher percentages to level I and lower to level III. At the end of the validity period, on January 1, 2028, a corrective will be applied if the accumulated inflation over the 24 months exceeds the nominal adjustments granted, according to the general CPI of the National Institute of Statistics (INE).
The agreement covers stores, second-hand clothing shops, boutiques, fabric stores, shoe shops, leather goods stores, haberdasheries, fashion houses, hosiery, men's articles, sportswear, leather and fur shops. It also includes perfumeries, jewellery stores, watch shops, and wholesale establishments whose main business falls within these activities, regardless of the sales method. The job categories range from salespeople, couriers, and cashiers to managers and accountants.
Among the new features is the expansion of care leave. Workers will be able to access up to 56 paid hours annually to care for hospitalised children up to 25 years old, dependents, and spouses, including home hospitalisation. Up to 12 of those hours can be allocated to caring for parents. The hours can be used in a fragmented manner but are not cumulative.
Regarding mental health, it was agreed to create a commission under Law 19.529 and its regulatory decree 226/2018. The National Labour Directorate will convene the body to address mental health issues affecting workers, with the first meeting scheduled for August, on a date yet to be determined.
The agreement incorporates a procedure for the prevention and resolution of conflicts. Before any union or business action, the parties must meet within 24 hours. If no agreement is reached, the case will be escalated to the Wage Council within 48 hours for mediation or conciliation. Additionally, a peace clause is included: during the validity period, the worker sector commits not to make salary demands or develop union actions in that regard, except for general measures resolved by Fuecys or the PIT-CNT.
For workers in the sector, the agreement represents a framework of salary and job stability until the end of 2027, with semi-annual adjustments linked to inflation and improvements in care and mental health rights. Companies, for their part, benefit from the peace clause, which reduces the risk of conflicts. The next milestone will be the meeting of the mental health commission in August 2025, which will define the work plan.
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