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Chilean Peso (CLP)
Estimated at 4.9% of employee’s salary
Spanish is the official language of Chile
The population of Chile is 19.6 million
Monthly
To start growing your team in Chile, you must establish a local entity- including an account with a local bank, a local office and an address registered as a subsidiary. This allows you to manage payroll, tax, benefits and compliance for your employees, but can take several months.
Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner.
“Hiring employees in Chile offers several advantages. The country boasts a skilled workforce with high levels of education and proficiency in various industries, making it conducive for businesses seeking specialized talent. For example, the Global Innovation Index ranks Chile as number in Latin America for innovation. Additionally, Chile has a stable economy and favourable business environment, which can attract foreign investment. Furthermore, Chile’s straightforward labour laws offer employers a clear guideline of expectations regarding hiring, compensation and benefits.
However, challenges include relatively high labour costs compared to some neighbouring countries, stringent labour regulations that can complicate hiring and termination processes, and the need to navigate bureaucratic procedures. Despite these drawbacks, hiring in Chile can still be advantageous due to its strategic location, modern infrastructure, and access to regional markets, which can facilitate business growth and expansion opportunities.”
Hiring remotely in Chile offers significant benefits for businesses aiming to leverage the country’s skilled workforce while minimizing logistical and operational costs. Remote work allows companies to access talent from diverse regions of Chile, overcoming geographical limitations and tapping into specialised skills that may not be readily available locally.
It also provides flexibility in scaling operations without the need for physical office space, reducing overhead expenses and promoting cost efficiency. Moreover, remote hiring fosters inclusivity and diversity within teams, enhancing creativity and innovation through varied perspectives. This approach not only boosts productivity but also aligns with modern work trends, offering employers the ability to adapt quickly to changing market demands and attract top talent nationwide.
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| Health insurance | Residents in Chile can choose between a public health insurance FONASA (Fondo Nacional de Salud) or private health insurance ISAPRE (Instituciones de Salud Previsional). Public Health Insurance in Chile is a national health insurance system, meaning it is available to all residents and it is funded through salary contributions. Those that use public health insurance are classified into four groups that are based on income levels, the lowest income group receives free care while others pay a specific contribution based on their salary. Private health insurance is only available to those that can afford it and it offers faster access to healthcare services. Employers are responsible for deducting 7% of the employee’s gross salary for health insurance contributions, for both systems. |
| Social Security Contributions | Social Security contributions are mandatory in Chile in order to fund social welfare programs such as unemployment benefits, pensions and accident insurance. Employees contribute a total of around 18.6-18.9% of their gross salary to social security and this covers pensions, health insurance, and unemployment insurance. Employers contribute to unemployment insurance and work accident insurance which totals up to 3.35-5.8%. |
Legal Gratification: Annual profit sharing of at least 30%, commonly paid as 25% of the employee's gross salary.
Vacations: Fifteen working days of annual leave after one year of service, with full compensation.
Christmas Bonus: Not legislated, but commonly paid in September and December.
Bereavement Leave: Seven consecutive paid days for the death of a child, spouse, or civil partner, and three business days for the death of a child during pregnancy or a parent.
Medical Leave for Older Workers: Half a day annually for workers over 45 (women) and 50 (men) for preventive health exams.
Marriage Leave: Five continuous paid working days, which can be used on or around the wedding or civil union agreement day.
Typically, 2 months.
Emerald Technology can onboard employees in Chile within 48 hours.
In Chile, restrictive covenants, such as non-compete and non-solicitation clauses, are legally recognized but must be reasonable in terms of duration, geographic scope, and activities restricted to be enforceable. They should balance the employer’s legitimate business interests with the employee’s right to work and earn a livelihood.
When hiring in Chile, employers are required to make the following contributions:
Employers must contribute approximately 7% of the employee’s gross salary towards health insurance, which can be through private insurance or the public health system.
Employers are required to contribute around 19% to 22% of the employee’s gross salary to social security funds, which cover pensions, disability, and other social benefits.
Entitled to 18 weeks overall, 6 weeks before delivery and 12 thereafter.
Paternity Leave: The father will be entitled to 5 days of paid leave from the moment of the birth.
If the mother should die in childbirth the father will be entitled to the rest of the time the mother had right, to be able to take care of the child.
As the legal employer, Emerald Technology requires the following employee documents to ensure complete compliance:
When an employer dismisses an employee it must be with just cause and they must give them notice. The notice period starts from the day after the employer notifies the employee of the termination. Notice must be given in accordance with the following schedule at a minimum:
Employers must provide 30 days’ notice or pay an additional month’s salary in lieu of notice. |
Compensation for Unfair Dismissal: If the dismissal is deemed unjustified, employees may be entitled to additional compensation, which can include back pay and other benefits.
If an employee is made redundant, they are entitled to a payment based on years of continuous service.
If an employee is dismissed without cause, they are entitled to severance pay. This is typically calculated as one month’s salary for each year of service, up to a maximum of 11 months’ salary. |
Employees are entitled to 15 days of unpaid workdays.
As of 2024, it is approximately CLP 460,000 (about USD 580) per month.
The duration of the ordinary working day shall not exceed 45 hours weekly.
Overtime is paid at a rate of 1.5 times the regular hourly wage and is limited to a maximum of two hours per day.
Salaries must be paid monthly in Chilean pesos and delivered in legal currency or via electronic transfer, as specified in the employment contract.
There is no statutory requirement for a 14th-month salary in Chile. However, many employers provide bonuses, especially during holidays like Christmas or the national holidays in September.
| Salary | Tax Payable |
| $0 – $13,357,800 | 5.00% |
| $13,357,800 – $22,563,000 | 10.00% |
| $22,563,000 – $31,588,200 | 15.00% |
| $31,588,200 – $40,613,400 | 25.00% |
| $40,613,400 – $54,151,200 | 32.00% |
| $54,151,200 – $67,689,000 | 37.00% |
| $67,689,000 and up | 40.00% |
Similar to other countries, Chile has strict rules on classifying individual contractors and full-time employees differently. Misclassifying your workers can put your business at risk of fines.
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