UI, BPC and UR: Uruguay's reference units explained simply

If you've read about taxes in Uruguay, you've run into three odd acronyms: UI, BPC and UR. Limits, fines and brackets are almost never in pesos — they're in these “units”. It's not to confuse you: it's so values don't lose meaning with inflation. Here we explain what each one is, simply and clearly.

Why do these units exist?

With inflation, a fixed peso figure goes stale fast. So Uruguay defines many limits in units that update on their own: that way a cap is “worth the same” year after year. The three most common are the UI (follows prices), the BPC (the State's annual reference) and the UR (follows wages).

UI — Unidad Indexada (Indexed Unit)

The UI follows inflation: its value adjusts every day according to the Consumer Price Index (CPI), and the INE publishes it. It's used in mortgages, indexed rents and, in tax matters, in many caps — for example, the 4,000,000 UI of IRAE ficto or the 152,500 UI of Monotributo assets. The law that created it puts it this way:

The UI moves with inflation, day by day:

«A partir de esa fecha la UI variará diariamente hasta acumular la misma variación que haya acumulado el Índice de Precios al Consumo durante el mes inmediato anterior.»

In English: From that date the UI will vary daily until it accumulates the same change accumulated by the Consumer Price Index during the immediately preceding month.

BPC — Base de Prestaciones y Contribuciones

The BPC is the State's reference unit. It was created to replace the national minimum wage as a calculation base, and it's set once a year by decree (every January 1). It's used in the IRPF and IASS brackets, in fines, benefits and many procedures. For 2025, for instance, the BPC was set at $6,576. This is how the law created it:

The BPC was created as the State's single reference, instead of the minimum wage:

«Créase la Base de Prestaciones y Contribuciones que será equivalente al valor del salario mínimo nacional, a la fecha de vigencia de la presente ley.»

In English: The Base de Prestaciones y Contribuciones is created, equivalent to the value of the national minimum wage as of the date this law takes effect.

UR — Unidad Reajustable (Adjustable Unit)

The UR follows wages: its value adjusts monthly according to the Average Wage Index (IMS), and the INE publishes it. It's used mostly in pensions, rents and housing loans. The key difference from the UI: the UI follows prices; the UR follows wages. The INE defines it like this:

The UR, by contrast, moves with wages:

«Su valor es ajustado periódicamente en función del Índice Medio de Salarios cuantificándose las variaciones en los doce meses anteriores.»

In English: Its value is adjusted periodically based on the Average Wage Index, quantifying the variations over the preceding twelve months.

The three units at a glance

How to turn them into pesos

It's a multiplication: quantity × the current value of the unit. For example, 7 BPC = 7 × the BPC value; 4,000,000 UI = 4,000,000 × the UI value. Since the values change (the UI daily, the UR monthly, the BPC yearly), it's always best to check the current official value: the INE publishes the UI and UR, and the BPC is set by decree each January.

Why they matter to you

Because the régime limits are in these units, not in pesos. The IRAE ficto cap (4,000,000 UI), the Monotributo assets (152,500 UI) or the IRPF brackets (in BPC) rise on their own over time. So, to know whether you fit a régime, you first convert the cap to pesos using the year's value. We use this in our posts on IRAE, IRPF and Monotributo.

In short: the UI follows prices (daily), the BPC is the State's annual reference, and the UR follows wages (monthly). They're Uruguay's way of keeping numbers from ageing. When you see a cap in UI or BPC, you now know how to read it and where to find its value. Want the system to do the math for you? Tributo converts the caps and tells you what applies. And always verify the current value with the INE.