CLP
Currency
Santiago
Capital
19 million
Population
Spanish
Official language
What is an employer of record ?
As an Employer of Record (EOR) in Chile, we act as the legal employer for your employees living in the country, handling all employment responsibilities and liabilities on your behalf. We manage everything end-to-end, including payroll, benefits, taxes, and compliance. By partnering with Workmate, you can hire employees in Chile without the complexities of setting up a local entity or navigating intricate labor regulations.
Guide to hiring in Chile
Explore the topics below to discover everything you need to know about hiring employees in Chile
Payroll & Wage
Minimum wage
As of July 1, 2024, the minimum wage in Chile is 500,000 Chilean pesos (CLP) per month, which is about $745 CAD.
Overtime
In Chile, a full workweek is 45 hours. Employers can add up to 2 extra hours per day, or 10 hours per week. Overtime is paid at 150% of the regular salary.
Social security
Monthly contributions:
Legal profit sharing - CLP 197,917
Work from home allowance - CLP 32,000
Life insurance - 1.58% (CLP 2,941,704 salary cap for calculations)
Accident insurance - 0.93% (CLP 2,941,704 salary cap for calculations)
Unemployment insurance - 2.4% (CLP 4,419,766 salary cap for calculations)
Taxes
The individual income tax rate ranges from 0% to 40% and is calculated using a progressive system. Various factors can influence the final rate, including household status (renting or owning with a mortgage), the number of dependents under 18, marital status, and place of residence.
Leave entitlements
Vacation
Employees receive 15 working days of paid time off (PTO) per year, accruing at 1.25 days per month. Leave can be taken as it accrues with employer approval.
Parental leaves
Maternity leave:
Female employees are entitled to maternity leave of 6 weeks before and 12 weeks after childbirth, paid at 100% of their salary (up to a cap) by Social Security.
Paternatiy leave:
Fathers are entitled to 7 days of paid paternity leave. The employee will receive 100% of the salary during this period, and the employer will be responsible for this pay.
Sick leave
Employees receive 15 working days of paid time off (PTO) per year, accruing at 1.25 days per month. Leave can be taken as it accrues with employer approval.
Holidays
Employees receive 15 working days of paid time off (PTO) per year, accruing at 1.25 days per month. Leave can be taken as it accrues with employer approval.
Terminations
Notice period
Employers must give an employee 30 days’ notice before dismissal or pay the employee wages or salaries equivalent to 30 days of work.
Severance pay
In Chile, all employees who are terminated due to general grounds or without notice are entitled to severance pay. Severance pay is 30 days of salary per year of service up to 330 days based compensation.
Other details
Employment agreements
Agreements or contracts must be in Spanish or bilingual. The following terms are required:
Termination conditions
Ordinary or integral salary
Non-salary payments
Probation pediod
There is no probation period in Chile. Many companies use an initial fixed-term contract as a probationary period. If the employee performs well, they are offered an indefinite contract; otherwise, the contract is not renewed.