* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City

Chilean Peso ($)



Employment Cost


Annual Leave

15 days

In-demand Specialties*
Project Management, Financial Skills, Technology Skills

The Ultimate Guide to Hiring Employees in Chile

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.


Key Considerations Before Hiring In Chile

Employing in Chile requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in Chile with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in Chile quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

Chile's legal framework for employment, including distinct categories of labor agreements and mandatory written employment contracts, ensures clarity and compliance in the hiring process.

With a workforce of around 8.8 million people, Chile provides access to a considerable talent pool for international employers.

Despite its relatively small size, Chile boasts the fourth largest GDP in South America, indicating economic stability and growth opportunities.

Chileans are known for being friendly and hospitable, making it easier for foreign employers to integrate into the local business culture.


Fundamental Aspects of Employment in Chile

When it comes to employment in Chile, there are three main types of agreements: individual contracts, collective contracts, and special contracts (like apprenticeships). Collective contracts set general employment terms, but the actual job relationship begins with an individual contract, which can be either permanent or temporary. As per Chilean Labor Code Article 10, the agreement needs to cover basics like:

  • Identification of both parties
  • Contract date and place
  • Job details
  • Pay terms

Probationary Period in Chile

The labor laws don't set strict rules for how long an employee's probation period should be. Typically no more than 12 months for employees with fixed contracts, the entire contract period is considered a probationary period.

Working hours in Chile

The standard maximum working hours per week are 45, spread across five or six days but commonly 9 hours, observed from Monday to Friday.

Overtime in Chile

Employees can work up to two extra hours a day or ten extra hours a week. For this overtime, they get paid 50% more than their regular salary for that day.

Navigating Key Aspects of Payroll in Chile

Chile has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

1 January- 31 December

Fiscal Year in Chile

1 January- 31 December is the 12-month accounting period that businesses in Chile use for financial and tax reporting purposes.

Payroll Cycle in Chile

The payroll cycle in Chile is usually monthly, with employees being paid by the last day of the month.
2,555.56 CLP p/h

Minimum Wage in Chile

The minimum wage for employees in Chile is typically 2,555.56 CLP per hour, amounting to ~460,000 CLP per month for a typical 45 hour work week.

Minimum wages and salaries in Chile

The minimum wage for full-time workers is currently CLP 460,000. The law outlines gradual increases, and by July 1, 2024, the minimum wage is set to reach CLP 500,000.

Bonus Payments in Chile

Chilean labor law doesn't have specific provisions for 13th salaries.

Comprehensive Overview of Employment Taxes in Chile

Understanding the tax obligations for both employers and employees is crucial when operating in Chile's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Chile.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 4.24% on top of the employee salary in Chile.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In Chile, the typical estimation for employee payroll contributions cost is around 17.60%.

Tax Rate Tax Type

Individual Payroll Tax Contributions

Individual income tax in Chile is calculated based on progressive rates ranging from 0% to 40%. The tax is applied to monthly income, and 1 Monthly Tax Unit is equivalent to approximately 51,500 CLP.

Tax Rate Income Bracket

Pension in Chile

Employees are required to contribute 10% to their pension. Getting the old-age pension is a choice, not a must. To qualify, employees need to be 65 (for men) or 60 (for women) and be part of AFP (Administradoras de Fondos de Pensiones).

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Chile tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in Chile

When it comes to terminating employment in Chile, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

To terminate an employee in Chile, a valid reason must be determined. According to the law, acceptable reasons for termination include:

  • Mutual agreement
  • Resignation
  • Breach of contract
  • Company needs or reorganization

Notice Period

According to the law, the notice period for termination is one month. However, it's common for the notice period to be skipped, and instead, payment is made in place of the notice.

Severance Pay

If an employee has worked for a year or more, they get severance pay. For each year up to 11 years, they get one month's salary. After the first year, they earn an extra month of severance pay if they have worked for at least half of the following year

Annual Leave Entitlements and Company Policies in Chile

The annual leave entitlement in Chile is 15 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in Chile

Public holidays that fall on the weekend are usually forfeited.

Holiday Date

Paid Time Off in Chile

Maternity Leave in Chile

Paternity Leave in Chile

Sick Leave in Chile

Bereavement Leave

Parental Leave In Chile

Chile's Benefits Built Into Playroll

Competitive benefits package in Chile

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in Chile's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In Chile

Make your benefits package in Chile a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

  • Health Insurance
  • Long-Term/Disability Insurance
  • Workman's Compensation
  • Background Checks
  • IT Equipment Sourcing

Statutory benefits for employment in Chile

Playroll allows you to provide localized benefits for employees in Chile within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in Chile create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for Chile

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in Chile.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

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