Overview
Payroll Cycle
Employer Contributions
Employee Contributions
Minimum Wage
Hiring
Hiring Employees
Hiring Contractors
Hiring Expats
Background Checks
Employment Contracts
Onboarding
Employee Benefits
Social Security
Healthcare and Insurance
Leave Policy
Public Holidays
Work Permit and Work Visa
Probation Period
Notice Period
Termination and Severance
Personal Income Tax
Are you considering expanding your business operations to Chile? Managing a workforce in a new country can be a complex undertaking. That's where an Employer of Record (EOR) in Chile can provide valuable assistance. Our web page offers comprehensive insights into the role of an EOR and how they can simplify your expansion efforts. Discover the benefits of partnering with an EOR in Chile, including ensuring legal compliance, handling payroll administration, providing HR support, and mitigating risks. With our expertise and local knowledge, you can navigate the Chilean employment landscape with confidence and focus on your core business objectives.
| Overview | |
| Continent | Americas |
| Country | Chile |
| Capital | Santiago |
| Time zone | UTC−06:00 — Easter Island |
| Total Time zones | 3 |
| Working hours per week | 45 |
| Working week | Monday–Friday |
| Typical hours worked | 9 |
| Financial Year | 1st January to 31st December |
| Date format | dd/mm/yyyy |
| Currency | Chilean Peso (CLP) |
| VAT | the standard rate is 19% |
Different Hiring Options in Chile
When it comes to hiring employees in Chile, there are various options available. These include indefinite, fixed-term, or task-specific employment agreements. Employees have the choice of working either part-time, with a maximum of 30 hours per week, or full-time.
Under fixed-term agreements, the maximum duration is typically 12 months. However, in certain cases where employees hold a technical or professional title from a recognized educational institution in Chile, this duration can be extended to 24 months. It's important to note that such extensions are rarely utilized in practice.
Independent Contractor:
In compliance with Chilean law, companies have the ability to engage independent contractors for different types of services. This can include outsourcing core business functions or specific tasks like cleaning or canteen services. In these situations, the contractor company assumes responsibility for the workers, who are considered dependent on and subordinate to the contractor rather than the client (principal).
Should the contractor company fail to meet its labor or social security payment obligations to its employees, including severance compensation, the client (principal) becomes jointly liable for these obligations. However, the client can minimize this liability by regularly verifying compliance with employment and social security requirements.
Agency Worker:
In Chile, outsourcing labor through personnel supply companies is permitted only for specific purposes outlined by law and for limited time periods. The duration of these periods varies depending on the grounds for utilizing agency services, such as temporary replacement of sick employees. The personnel supplier is responsible for the workers and is obligated to fulfill the respective social security and labor obligations. If these obligations are not met, the company that has engaged the temporary worker becomes liable for the employer's employment obligations, either in part or in full.
Employer Payroll Contributions in Chile
| Employers | |
| Unemployment | 2.4% |
| Disability and Survival Insurance (SIS) | 1.99% |
| Total Employment Cost | 4.39% |
Employee Payroll Contributions in Chile
| Employees | |
| Pension | 10% |
| Unemployment | 0.6% |
| Health Plan | 7% |
| Total Employee Cost | 17.6% |
Minimum Wages in Chile
| Minimum Wage | |
| Minimum Wage | Minimum wage in Chile is 326500 CLP per month. |
Payroll Cycle in Chile
| Payroll | |
| Payroll Cycle | Monthly |
| 13th Salary | No statutory laws requiring a 13th salary. |
Income Tax Slabs in Chile
| Income Tax | *1 Monthly Tax Unit = approximately 51,500 CLP |
| 0 – 13.5 Monthly Tax Units | 0% |
| 13.5 - 30 Monthly Tax Units | 4% |
| 30 – 50 Monthly Tax Units | 8% |
| 50 – 70 Monthly Tax Units | 13.5% |
| 70 – 90 Monthly Tax Units | 23% |
| 90 – 120 Monthly Tax Units | 30.4% |
| 120 – 350 Monthly Tax Units | 35% |
| Personal Tax filing deadline | 30 April or 9 May (returns without payment) |