Easily manage employment in

Chile
chile flag

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.

Services available in this country:
Employer of Record ProductContractor Management
  • Capital City

    Santiago

  • Currency

    Chilean peso ($, CLP)

  • Languages

    Spanish

  • Population size

    17,574,003

Services available in this country:
Employer of Record ProductContractor Management
An aerial view of a city with tall buildings and a highway.

Facts & Stats

Chile
  • Capital City

    Santiago

  • Currency

    Chilean peso ($, CLP)

  • Languages

    Spanish

  • Population size

    17,574,003

  • Ease of doing business

    Easy

  • Cost of living index

    49.33 (2021)

  • Payroll frequency

    Monthly

  • VAT - standard rate

    19%

  • 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.

Colorful houses on a hillside.

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

Following approval of the law to increase the minimum wage in Chile, the amounts will rise gradually as follows:

  • $440,000 pesos (US$547.80) as of May 1, 2023 (retroactive)

  • $460,000 pesos (US$572.70) as of September 1, 2023

  • $500,000 pesos (US$622.50) as of July 1, 2024

The law includes the possibility of increasing the minimum wage according to variations in the Consumer Price Index (CPI).

Therefore, in the event that the accumulated CPI for 2023 exceeds 6%, an increase of $10,000 pesos (US$12.45) will be made on January 1, 2024, setting the minimum wage at $470,000 pesos (US$585.15) on that date.

The initiative also includes an automatic readjustment of the minimum monthly wage on January 1, 2025, according to the CPI percentage between July and December 2024.

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 finalising 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 instalments 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 5 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

Jan
Monday 1 January 20241New Year's Day (Año Nuevo)
Mar
Friday 29 March 20242Good Friday (Viernes Santo)
Saturday 30 March 20243Holy Saturday (Sábado Santo)
May
Wednesday 1 May 20244Labour Day (Día del Trabajador)
Tuesday 21 May 20245Navy Day (Día de la marina)
Jun
Thursday 20 June 20246Native People National Day (Dia Nacional de los Pueblos Indigenas)
Saturday 29 June 20247Saint Peter and Saint Paul (San Pedro y san Pablo)
Jul
Tuesday 16 July 20248Our Lady of Mount Carmel (Nuestra Señora del Monte Carmelo)
Aug
Thursday 15 August 20249Assumption of Mary (Asunción)
Sept
Wednesday 18 September 202410National Holiday (Fiesta Nacional)
Thursday 19 September 202411Army Day (Día del ejército)
Friday 20 September 202412Additional National Holiday (Feriado Adicional Fiestas Patrias)
Oct
Saturday 12 October 202413Meeting of two worlds (Encuentro de dos mundos)
Thursday 31 October 202414Reformation Day (Día de la reforma)
Nov
Friday 1 November 202415All Saints' Day (Fiesta de Todos los Santos)
Dec
Sunday 8 December 202416Feast of the Immaculate Conception (Inmaculada Concepción)
Wednesday 25 December 202417Christmas Day (Navidad)

Want to see and manage all holidays? Sign up for our free HRIS!

Effortless HR in Chile: Take the Tour

Seamlessly Manage Your Workforce, from First Hire to Final Paycheck

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.

Fair Pricing in Chile

Employer of Record

Hire and pay your global team

Starting at €550/month

for annual plans

Top features

  • Satisfaction guaranteed

  • No deposits or hidden fees

  • Zero onboarding or offboarding fees

  • Compliant equity incentives support including withholding and reporting

  • Built-in security and compliance

  • Fast onboarding (average 2-3 days)

  • Flexible, localised benefits

Contractor Management

Compliantly onboard and pay contractors

€27

per contractor/month

Top features

  • Only pay for contractors you actively work with

  • Work with contractors in 200+ countries

  • Create, edit, and sign tailored, localised contracts

  • Approve contractor invoices with one click or auto-pay

  • Transparent payments with complete visibility

Payroll

Consolidate your multi-country payroll

€27

per employee/month

Top features

  • Simplify: Comprehensive platform that integrates all payroll functions

  • Support: Personalised assistance with a dedicated team and specialists

  • Accuracy: Test runs and parallel pay runs before implementation

  • Compliance: Adhere to local labour laws in every country

  • Timeliness: Accurate and on-time payroll with labour authority reporting handled

HRIS

Manage all of your employees in one place

Free

Top features

  • Guided onboarding and offboarding

  • Employee profile and document management

  • Time and attendance (time off and tracking)

  • Expense management and reimbursement

  • Employee self-serve on the platform and mobile app