Expand your global workforce in Chile
Your guide to the employment landscape, working customs and local labor laws in Chile
Capital
Santiago
Currency
Chilean Peso (CLP)
Languages
Spanish
GDP per Capita
$14,358.35
Employer Tax
3.4%-3.9%
Payroll Frequency
Monthly
Talent overview
Chile is one of South America’s economically progressive nations, ranking 2nd among the 32 countries in the region. Their foreign trade activities and market-oriented economy makes it the 20th freest economy. Chile is one of the top producers of copper, lithium, nitrates and other minerals.
Major economic hubs:
Santiago, Valparaíso, Concepción
Skills in demand:
Health care professionals, Clerical positions, Restaurant, and Hotel workers
Chile
Top local universities in Chile
Universidad de Chile
Ranking
Local: 1
World: 175
Pontificia Universidad Católica de Chile
Ranking
Local: 2
World: 304
Universidad de Concepción
Ranking
Local: 3
World: 712
Universidad Técnica Federico Santa María
Ranking
Local: 4
World: 1013
Universidad de Santiago de Chile
Ranking
Local: 5
World: 1117
Top Local Job Boards
Chiletrabajos.cl, Indeed, Trabajando.cl
Number of LinkedIn users
6,800,000
Top Recruitment Agencies
Where to find talent
Top Local Job Boards:
Top Local Job Boards
Number of LinkedIn users:
Number of LinkedIn users
Top Recruitment Agencies:
Top Recruitment Agencies:
Salary Data
Below are the average monthly salaries for certain job positions in Chile:
| Job Title | Average Monthly Salary (CLP) | Average Monthly Salary (USD) |
| Financial Manager | 3,510,000 | 4101.66 |
| General Manager | 3,110,000 | 3634.24 |
| Business Development Manager | 2,810,000 | 3283.67 |
| Financial Analyst | 2,400,000 | 2804.56 |
| Business Analyst | 2,280,000 | 2664.33 |
| Project Manager | 2,030,000 | 2372.19 |
Employ in Chile
Employing in Chile
Chile’s free market economy has produced well-rounded and highly skilled workers that will be a perfect addition to your business. But employers must be aware of the rules and regulations before onboarding employees from the country. The following sections cover some of Chile’s labor laws.
Employee Contract
Official Employment contracts in Chile must be written in Spanish. An English translation may be provided if both parties prefer it. However, a Spanish version must always be attached to it.
Probation Period
The probation period for Chilean employees is 2 weeks by default.
Public and Provincial Holidays
| Date | Name | Type |
| January 1 | New Year’s Day | National Holiday |
| April 18 | Good Friday | National Holiday |
| April 19 | Holy Saturday | National Holiday |
| May 1 | Labor Day / May Day | National Holiday |
| May 21 | Navy Day | National Holiday |
| June 20 | National Day of Indigenous Peoples | National Holiday |
| June 29 | Presidential and Parliamentary Primary Elections | National Holiday |
| June 29 | Saint Peter and Saint Paul | National Holiday |
| July 16 | Our Lady of Mount Carmel | National Holiday |
| August 15 | Assumption of Mary | National Holiday |
| September 18 | National Day | National Holiday |
| September 19 | Army Day | National Holiday |
| October 12 | Day of the Discovery of Two Worlds | National Holiday |
| October 31 | Reformation Day | National Holiday |
| November 1 | All Saints’ Day | National Holiday |
| November 16 | Presidential and Parliamentary Elections | National Holiday |
| December 8 | Inmaculate Conception Day | National Holiday |
| December 25 | Christmas Day | National Holiday |
| December 31 | New Year’s Eve | Local Holiday |
Employee Leaves
| Type of Leave | Time Period | Mandatory |
| Annual Leave | 15 days | Yes |
| Sick Leave | 30 days | Yes |
| Maternity Leave | 18 weeks | Yes |
Leave Compliance
Public and Provincial Holidays
Payroll in Chile
Payroll cycle
Chile releases payroll every month.
Minimum wage
Minimum wage in Chile varies depending on an employee’s age. For employees aged 18 to 65 years old, minimum wage is CLP 510,636/month. For employees under 18 years old and over 65 years old, minimum wage is CLP 2380,923/month.
Overtime pay
The standard working hours in Chile are 45 hours per week. In Chile, employees are paid 150% of their hourly rate for overtime hours performed in a normal working day. For working on a rest day, employees are paid 130% of their regular rate.
How taxes work
Employer Payroll Tax
| Scheme | Employer’s Contribution |
| Pensions | 1.53% |
| Health Insurance | – |
| Disability and Survival Insurance | – |
| Work accident insurance | 0.93% |
| Mandatory compensation | 1.11% |
| Show Background Information Show References |
Employee Payroll Tax
| Scheme | Employee’s Contribution |
| Pensions | 10% |
| Health Insurance | 7% |
| Disability and Survival Insurance | 2.21% |
| Work accident insurance | |
| Mandatory compensation | |
| Show Background Information Show References |
Employee Income Tax
The tax slabs on income in Chile are set monthly, depending on the monthly tax unit set by the government. In addition to the income tax, a Complementary Global Tax applies to the global income of the residents and is to be paid annually, as follows:
| Annual Income | Tax Rate |
| 0 to 13.5 times monthly tax unit | No tax |
| 15.5 to 30 times monthly tax unit | 4% |
| 30 to 50 times monthly tax unit | 8% |
| 50 to 70 times monthly tax unit | 13.5% |
| 70 to 90 times the monthly tax unit | 23% |
| 90 to 120 times the monthly tax unit | 30.4% |
| 120 to 310 times the monthly tax unit | 35% |
| Above 310 times the monthly tax unit | 40% |
VAT
The Standard VAT in Chile is 19%.
Bonus
13th Month Pay
It is only customary to provide 13th-month pay for Chilean employees.
Employee Benefits
- Pension Plan
- Statutory Leaves
- Health Benefits
- Unemployment Insurance
Employee offboarding
Generally, employment contracts in Chile must not be terminated at-will. The decision to end the contract must be grounded with just reason. A notice in writing must be given by either party regarding the termination.
Chilean employees under probation period must observe a notice period of up to 7 days. For employees outside probation, notice period will be up to 30 days.
Employees terminated without just cause, redundancy, and collective dismissal are entitled to severance pay equivalent to 30 days of remuneration for every year of service.
Visa and
immigration
Foreign nationals intending to work in Chile must secure a work visa to be able to legally work in the country. A Chilean work visa has a validity period of one year and can be renewed.
A Holiday working visa may also be granted for foreign workers intending to work in the country for a year. But unlike the standard work visa, a holiday working visa may only be granted once and cannot be renewed.
Your employment toolkit for Chile
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Overtime Pay
Minimum Wage
Overtime Pay
Visa and Immigration