Remote’s guide to employing in

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Make employment in Chile easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Chile, all in one easy-to-use platform.

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  • Capital city


  • Currency

    Chilean peso ($, CLP)

  • Languages


  • Population size


Services available in this country:
Global Employment ServicesContractor Management

Facts & Stats

Chile Map Illustration
  • Capital city


  • Currency

    Chilean peso ($, CLP)

  • Languages


  • Population size


  • Ease of doing business


  • Cost of living index

    49.33 (2021)

  • Payroll frequency


  • VAT - standard rate


  • GDP - real growth rate

    1.1% (2019)

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.

Grow your team in Chile with Remote

Looking to employ workers in Chile? Companies hiring in Chile must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.

Remote can employ your team in Chile on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your Chile team. You can also pay contractors now in Chile with Remote.

Risks of misclassification

Chile, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Chile may lead to fines and penalties for the offending company.

Employing in Chile

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.

Minimum Wage

The Chilean government sets a minimum wage annually and there are generally two rates for working adults and for minors and retirees. As of January 1, 2023, the minimum gross monthly salary is increased to:

  • $440,000 CLP for employees over 18 years of age and up to 65 years of age

  • $328,230 CLP for employees under 18 years of age and over 65 years of age

Legal Gratification Bonus

Employees are entitled to this annual legal gratification bonus typically paid monthly. The payment is capped at a limit of 4.75 x the minimum monthly wage (note this amount changes when an increase to the minimum wage is announced). This bonus should be considered before finalizing an offer. The base salary can be lowered in order to accommodate the legal gratification bonus, but once a base salary is stipulated and agreed to with the employee, it cannot be lowered without the employee’s consent.

Fixed-term Agreements

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:

  • after its second renewal

  • immediately at the term lapse, if the employer does not expressly terminate the employment on the grounds of completion of the term

  • if the parties have agreed to more than 2 employment contracts during a 12 month period, or more contracts during a 15 months period

  • if the contract exceeds the maximum term allowed (one or two years depending on the employee’s qualifications)

Payroll Cycle

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.

Onboarding Time

We can help you get a new employee started in Chile fast. The minimum onboarding time we need is only 7 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.

17 Public holidays

Sunday, January 1, 20231New Year's Day (Año Nuevo)
Monday, January 2, 20232Additional Holiday (Feriado Adicional)
Friday, April 7, 20233Good Friday (Viernes Santo)
Saturday, April 8, 20234Holy Saturday (Sábado Santo)
Monday, May 1, 20235Labor Day (Día Nacional del Trabajo)
Sunday, May 21, 20236Navy Day (Día de las Glorias Navales)
Wednesday, June 21, 20237National Day of Indigenous People (Día Nacional de los Pueblos Indígenas)
Monday, June 26, 20238Feast of Saints Peter and Paul (San Pedro y San Pablo)
Sunday, July 16, 20239The Feast of Our Lady of Mount Carmen (Día de la Virgen del Carmen)
Tuesday, August 15, 202310Feast of Assumption (Asunción de la Virgen)
Monday, September 18, 202311Independence Day (Independencia Nacional)
Tuesday, September 19, 202312Day of the Glories of the Army (Día de las Glorias del Ejército)
Monday, October 9, 202313Day of the Races/Columbus Day (Encuentro de Dos Mundos)
Friday, October 27, 202314National Day of the Evangelical and Protestant Churches (Día de las Iglesias Evangélicas y Protestantes)
Wednesday, November 1, 202315All Saints' Day (Día de Todos los Santos)
Friday, December 8, 202316Feast of the Immaculate Conception (Inmaculada Concepción)
Monday, December 25, 202317Christmas Day (Navidad)

Competitive benefits package in Chile

Remote supports our clients by offering competitive benefits packages that will help you attract and retain the best talent across the globe! Our benefits specialists have done the research on norms and requirements in each local market and have crafted packages that will allow your employees to thrive, no matter what country they live in.

Our benefits packages in Chile are tailored to fulfil the local needs of your employees. Typically, our packages contain some or all of the following benefits:

  • Health Insurance

  • Dental Insurance

  • Vision Insurance

  • Mental Health Support

  • Pension or 401(K)

  • Life and Disability Insurance

Local market insights

  • In Chile, 90%* of employers offer supplemental health insurance to their workforce. (*based on 3rd-party market research from our partners)

  • Although the country has a robust public health system, private health insurance provides employees with access to a wider range of options for providers and specialists, as well as significantly shorter wait times.

Our core benefits (which often include things like healthcare) are required in most countries where we hire. Because Remote is the employer of record, it’s important for us to offer the same core benefits to all employees in a country to ensure fair equity and non-discriminatory hiring practices, which protects your business and ours. Note that we do not add a markup on any benefits premiums or administration costs.

If you'd like specific information about our benefits packages in Chile, start onboarding your first employee with Remote today.

For more insight into fair equity and benefits best practices, download our Global Benefits Guide and share with the rest of your hiring team.

Taxes in Chile

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Chile.

  • 3.40%

    risk surcharge

  • 2.40%

    unemployment insurance plan (Seguro de Cesantia)

  • 1.86%

    disability and life insurance contribution

  • 0.93%

    occupational work accident insurance

Types of Leave

Employees who have worked with an employer for at least one year are entitled to 15 working days of paid vacation annually.

Employment termination

Termination process

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.

Notice period

An employer must provide at least 30 days’ notice of an employee’s termination.

Severance pay

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.