About 83.3% of girls whereas 72.7% of boy’s complete lower secondary school in Uruguay as of 2023 with literacy rates almost equivalent between men and women (98.6% – 99.2%). Yet the proportion of women living in poverty (8.8%) is nearly double that of men (4.8%). As education isn’t the issue, the cause could be the gender wage gap in Uruguay.

The Gender Wage Gap in Uruguay

The gender wage gap refers to the average difference in hourly earnings between working men and women, usually expressed as a percentage. In Uruguay, INE analysis shows men generally earn up to 27% more than women. Women and girls aged 15+ also spend nearly double as much of their time doing unpaid work (19.9%) compared to men, who spend 8.4% of their time on unpaid work according to UN Women.

Workers in vulnerable employment are the least likely to have formal working contracts, social protection or safety nets to protect them from economic shocks, which makes them more likely to fall into poverty. Women hold 24.7% of vulnerable employment in Uruguay.

As of 2026, a woman has never held the office of the presidency in Uruguay. Today, women occupy 22.3% of parliamentary seats in Uruguay, despite women making up 51.5% of the population. Underrepresentation in politics can stop policymakers from pushing policies that advance women’s roles in the workforce as well as their earning potential.

Progress Towards Addressing the Gender Wage Gap

Uruguay has made major moves forward in women’s rights since the 20th century, which reduced women’s poverty and improved the economy overall. The labor force participation rate for women has increased by nearly 10% since 1990 (42.6% then compared to 57.3% now). This rate stands higher than the average across Latin America and the Caribbean where women’s labor force participation rates sit at 51.2%.

The share of women working in high income positions has also increased marginally since 1990 (50.1% in 1990 compared to 54.3% today). This figure stands slightly higher than the global rate of women working in high income positions, which sits at 49.1%. 

What More Can be Done?

Despite these incredibly important milestones over the last century, Uruguay has not yet achieved gender equality in wages, which contributes to continued poverty in the country today.

Research suggests that governments could reduce the gender wage gap by implementing policies that allow women to participate in the workforce more freely. Policies that reduce informal employment, strengthen labor protections and identify and address discrimination or gender bias in hiring, pay and promotion would greatly benefit women in work according to the Inter-American Development Bank.

Conclusion

Uruguay has progressed in gender equality related to the wage gap by improving the pathway from education to workforce participation. Nevertheless, disparities remain in income and employment conditions, which contributes to higher levels of poverty across the country.

International organizations such as UN Women and the Inter-American Development Bank indicate that implementing policies and addressing informal employment could significantly reduce gender gaps. 

– Yemi Mary John

Yemi is based in London, UK and focuses on Business and New Markets for The Borgen Project.

Photo: Flickr