Chile

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.

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 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)

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 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.