Remote’s guide to employing in Chile.
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The Republic of Chile (República de Chile) is a unitary presidential republic that’s famous for its long, and beautiful coastline, wild llamas, and rich cultural diversity.
With just 4% of South America’s population and landmass, Chile still boasts the fourth largest GDP on the continent, the highest human development index, the second-highest per capita income, comparatively low corruption level, and one of the lowest crime levels in the Americas.
17,574,003 (est. 2017)
Ease of doing business
Cost of living index
VAT - standard rate
GDP - real growth rate
To employ in Chile, companies must own a local legal entity in the country or work with a global employment solution. Managing payroll, benefits, taxes, and compliance in Chile can get complicated, especially without established local relationships.
Remote’s global employment solution makes it easy for your company to employ workers in Chile quickly, efficiently, and in full compliance with all applicable labor laws. We take on the responsibility and legal risks of international employment so you can focus on hiring great talent and growing your business.
The Chilean Labour Code spells out provisions for employee protections, workers’ rights, and general employment relations applicable to Chile’s workforce of 8.8 million. Employees in Chile enjoy protections against discrimination based on age, religion, sexual orientation, gender expression, and race.
Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Chile.
The Chilean president sets a minimum wage annually and there are generally two rates for working adults on one hand, and for minors and retirees.
Fixed-term agreements are contracts with a start and end date.
A fixed-term contract can only be limited to a one-year term (or two years for certain highly skilled professionals). This will turn into an indefinite duration contract:
For customers of Remote, all employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.
We can help you get a new employee started in Chile fast. The minimum onboarding time we need is only 14 working days.
Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.
For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.
Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.
Remote can help you provide a competitive and compliant benefits package for your employees in Chile. If you have questions or would like to offer a custom benefit, let us know and we can help.
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Chile.
27% - corporate tax rate
2.4% - unemployment insurance
0.95% - occupational accidents
Up to 40% - personal income tax rate (depends on salary and other variables)
10% - pension contribution
0.6% - unemployment insurance
7% - health insurance
Employees who have worked with an employer for at least one year are entitled to 15 working days of paid vacation annually.
Employees are entitled to take the 16 national public holidays off as paid time off or receive compensatory days off if they’re required to work.
Employees are entitled to sickness benefits starting from the fourth day of an illness, paid by Chilean health insurance authorities— provided a medical certificate stating the employee’s condition is stated.
Female employees can take 30 weeks of paid maternity leave, starting six weeks before birth and lasting 24 weeks after, paid by the health insurance agency.
Likewise, mothers of children under 18 are entitled to 10 days of leave, in addition to the statutory annual and public holiday entitlements.
Nursing mothers can take an hour-long break to breastfeed a child below the age of two.
Fathers can take five days off after delivery and can as well share the mother’s maternity leave of up to six weeks, or 12 half-weeks, paid at 100% of the employee’s normal salary.
Employees can be terminated with just cause, for reasons such as dishonesty, negligence, fraud, or any other work-related offenses, and although the managerial staff can be dismissed at will, a severance package is mandated by law.
An employer must provide at least 30 days’ notice of an employee’s termination.
Employees dismissed for business reasons (e.g., redundancy) are entitled to a severance package equivalent to a month’s wages, while employees guilty of violating their contract or other serious offenses won’t be entitled to severance pay.