Chile
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.
- Capital City
Santiago
- Currency
Chilean peso ($, CLP)
- Languages
Spanish
- Population size
17,574,003
Facts & Stats
- Capital City
Santiago
- Currency
Chilean peso ($, 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.
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
Want to see and manage all holidays? Sign up for our free HRIS!
Effortless HR in Chile: Take the Tour
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 $800/month
paid annually, or S$940/month paid monthly
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
Top features
Only pay for contractors you actively work with
Work with contractors in 200+ countries and territories
Create, edit, and sign tailored, localised contracts
Approve contractor invoices with one click or auto-pay
Transparent payments with complete visibility
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
Experience: Seamless payroll with easy access to payslips and expenses
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