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Chile Employment Guide

Your quick guide on talent and labor compliance norms in Chile




Chilean Peso (CLP)



Payroll Frequency


GDP per Capita


Employer Tax


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 according to the 2022 index. 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 Map

Local Universities

The top local universities in Chile are as follows:

Chile Uni1

Universidad de Chile


Local: 1

World: 175

Chile Uni2

Pontificia Universidad Católica de Chile


Local: 2

World: 304

Chile Uni3

Universidad de Concepción


Local: 3

World: 712

Chile Uni4

Universidad Técnica Federico Santa María


Local: 4

World: 1013

Chile Uni5

Universidad de Santiago de Chile


Local: 5

World: 1117

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
Chile Talentsource

Talent Sourcing Tips

Top Local Job Boards, Indeed,

Number of LinkedIn users


Top Recruitment Agencies

HR Buro, AHA Inclusión, Tomic Consultores

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 1 to 3 months.

Public and Provincial Holidays 2023

Date Name Type
1 Jan New Year’s Day National holiday
2 Jan Day off for New Year’s Day National holiday
7 Apr Good Friday National holiday, Christian
8 Apr Holy Saturday National holiday, Christian
1 May Labor Day / May Day National holiday
21 May Navy Day National holiday
21 Jun National Day of Indigenous Peoples National holiday
26 Jun Saint Peter and Saint Paul National holiday
16 Jul Our Lady of Mount Carmel National holiday
15 Aug Assumption of Mary National holiday
18 Sep National Day National holiday
19 Sep Army Day National holiday
9 Oct Day of the Discovery of Two Worlds National holiday
27 Oct Reformation Day National holiday
1 Nov All Saints’ Day National holiday
8 Dec Inmaculate Conception Day National holiday
25 Dec Christmas Day National holiday, Christian

Employee Leaves

Type of Leave Time Period Mandatory
Annual Leave 15 days Yes
Sick Leave 2 days Yes
Maternity Leave 30 weeks Yes


Payroll 1

Payroll Cycle

Chile releases payroll every month.

Payroll 2

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 400,000/month. For employees under 18 years old and over 65 years old, minimum wage is CLP 298,391/month.

Payroll 3

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.


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


Employer Payroll Tax

Type of Contribution Tax Rate
Unemployment Insurance 2.4%
Disability and Survival Insurance 1 to 1.5%

Employee Payroll Tax

Type of Contribution Tax Rate
Unemployment Insurance 0.6%
Pension 10%
Health Plan 7%

Employee Income Tax

The Chilean Income tax operates on two tax categories. The first one, the Global Complementary Tax, is being applied annually. Below are the rates based on income.

Taxable income bracket (USD) Rate (%) Discount (USD)
0 – 11,368.06 0 0
11,368.06 – 25,262.37 4.00 454.72
25,262.37 – 42,103.94 8.00 1,465.22
42,103.94 – 58,945.52 13.50 3,780.93
58,945.52 – 75,787.10 23.00 9,380.76
75,787.10 – 101,049.46 30.40 14,989.00
101,049.46 and more 35.50 19,637.28

The second is Employment Income tax is applied on gross salary minus social security contribution. Below are the rates:
Employment Tax (rates as of June 2017)

Taxable income bracket (USD) Rate (%) Discount (USD)
0 – 947.34 0 0
947.34 – 2,105.20 4.00 37.89
2,105.20 – 3,508.66 8.00 122.10
3,508.66 – 4,912.13 13.50 315.08
4,912.13 – 6,315.59 23.00 781.73
6,315.59 – 8,420.79 30.40 1,249.08
8,420.79 and more 35.50 1,636.44


The Standard VAT in Chile is 19%.

Offboarding & Termination

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.

Chile Visa
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Minimum Wage

Overtime Pay

Visa & Immigration