During the first half of the 20th century, Uruguay was able to establish an institutional system of universal social policies in the areas of education, labour and health which involved the coverage of most of the population (Filgueira, 1994). In the context of social protection, a system of contributory cash-based transfers was created which aimed to protect workers in the formal sector—and through them their families—and to provide them with an adequate retirement to replace their income. With regard to non-contributory transfers, in 1919 a social pension scheme for elderly and disabled people was created, targeting those people over 70 years of age considered socially vulnerable. In 1942 the system of contributory Family Allowances (Asignaciones Familiares) came into force, consisting of monthly cash benefits to workers in the formal sector with children. (...)