Your quick guide on talent and labor compliance norms in Chile
Capital
Santiago
Currency
Chilean Peso (CLP)
Languages
Spanish
Payroll Frequency
Monthly
GDP per Capita
$14,358.35
Employer Tax
3.4%-3.9%
Talent Overview
Chile is one of South America’s economically progressive nations, ranking 2nd among the 32 countries in the region. Their foreign trade activities and market-oriented economy makes it the 20th freest economy according to the 2022 index. Chile is one of the top producers of copper, lithium, nitrates and other minerals.
Major economic hubs:
Santiago, Valparaíso, Concepción
Skills in demand:
Health care professionals, Clerical positions, Restaurant, and Hotel workers
Local Universities
The top local universities in Chile are as follows:
Local: 1
World: 175
Local: 2
World: 304
Local: 3
World: 712
Local: 4
World: 1013
Local: 5
World: 1117
Salary Data
Below are the average monthly salaries for certain job positions in Chile:
| Job Title | Average Monthly Salary (CLP) | Average Monthly Salary (USD) |
| Financial Manager | 3,510,000 | 4101.66 |
| General Manager | 3,110,000 | 3634.24 |
| Business Development Manager | 2,810,000 | 3283.67 |
| Financial Analyst | 2,400,000 | 2804.56 |
| Business Analyst | 2,280,000 | 2664.33 |
| Project Manager | 2,030,000 | 2372.19 |
Talent Sourcing Tips
Chiletrabajos.cl, Indeed, Trabajando.cl
6,800,000
Chile’s free market economy has produced well-rounded and highly skilled workers that will be a perfect addition to your business. But employers must be aware of the rules and regulations before onboarding employees from the country. The following sections cover some of Chile’s labor laws.
Official Employment contracts in Chile must be written in Spanish. An English translation may be provided if both parties prefer it. However, a Spanish version must always be attached to it.
The probation period for Chilean employees is 1 to 3 months.
| Date | Name | Type |
| 1 Jan | New Year’s Day | National holiday |
| 2 Jan | Day off for New Year’s Day | National holiday |
| 7 Apr | Good Friday | National holiday, Christian |
| 8 Apr | Holy Saturday | National holiday, Christian |
| 1 May | Labor Day / May Day | National holiday |
| 21 May | Navy Day | National holiday |
| 21 Jun | National Day of Indigenous Peoples | National holiday |
| 26 Jun | Saint Peter and Saint Paul | National holiday |
| 16 Jul | Our Lady of Mount Carmel | National holiday |
| 15 Aug | Assumption of Mary | National holiday |
| 18 Sep | National Day | National holiday |
| 19 Sep | Army Day | National holiday |
| 9 Oct | Day of the Discovery of Two Worlds | National holiday |
| 27 Oct | Reformation Day | National holiday |
| 1 Nov | All Saints’ Day | National holiday |
| 8 Dec | Inmaculate Conception Day | National holiday |
| 25 Dec | Christmas Day | National holiday, Christian |
| Type of Leave | Time Period | Mandatory |
| Annual Leave | 15 days | Yes |
| Sick Leave | 2 days | Yes |
| Maternity Leave | 30 weeks | Yes |
Payroll
Payroll Cycle
Chile releases payroll every month.
Minimum Wage
Minimum wage in Chile varies depending on an employee’s age. For employees aged 18 to 65 years old, minimum wage is CLP 400,000/month. For employees under 18 years old and over 65 years old, minimum wage is CLP 298,391/month.
Overtime Pay
The standard working hours in Chile are 45 hours per week. In Chile, employees are paid 150% of their hourly rate for overtime hours performed in a normal working day. For working on a rest day, employees are paid 130% of their regular rate.
Bonus
It is only customary to provide 13th-month pay for Chilean employees.
Taxes
| Type of Contribution | Tax Rate |
| Unemployment Insurance | 2.4% |
| Disability and Survival Insurance | 1 to 1.5% |
| Type of Contribution | Tax Rate |
| Unemployment Insurance | 0.6% |
| Pension | 10% |
| Health Plan | 7% |
The Chilean Income tax operates on two tax categories. The first one, the Global Complementary Tax, is being applied annually. Below are the rates based on income.
| Taxable income bracket (USD) | Rate (%) | Discount (USD) | |
| 0 – 11,368.06 | 0 | 0 | |
| 11,368.06 – 25,262.37 | 4.00 | 454.72 | |
| 25,262.37 – 42,103.94 | 8.00 | 1,465.22 | |
| 42,103.94 – 58,945.52 | 13.50 | 3,780.93 | |
| 58,945.52 – 75,787.10 | 23.00 | 9,380.76 | |
| 75,787.10 – 101,049.46 | 30.40 | 14,989.00 | |
| 101,049.46 and more | 35.50 | 19,637.28 | |
The second is Employment Income tax is applied on gross salary minus social security contribution. Below are the rates:
Employment Tax (rates as of June 2017)
| Taxable income bracket (USD) | Rate (%) | Discount (USD) | |
| 0 – 947.34 | 0 | 0 | |
| 947.34 – 2,105.20 | 4.00 | 37.89 | |
| 2,105.20 – 3,508.66 | 8.00 | 122.10 | |
| 3,508.66 – 4,912.13 | 13.50 | 315.08 | |
| 4,912.13 – 6,315.59 | 23.00 | 781.73 | |
| 6,315.59 – 8,420.79 | 30.40 | 1,249.08 | |
| 8,420.79 and more | 35.50 | 1,636.44 | |
The Standard VAT in Chile is 19%.
Offboarding & Termination
Generally, employment contracts in Chile must not be terminated at-will. The decision to end the contract must be grounded with just reason. A notice in writing must be given by either party regarding the termination.
Chilean employees under probation period must observe a notice period of up to 7 days. For employees outside probation, notice period will be up to 30 days.
Employees terminated without just cause, redundancy, and collective dismissal are entitled to severance pay equivalent to 30 days of remuneration for every year of service.
Visa and Immigration
Foreign nationals intending to work in Chile must secure a work visa to be able to legally work in the country. A Chilean work visa has a validity period of one year and can be renewed.
A Holiday working visa may also be granted for foreign workers intending to work in the country for a year. But unlike the standard work visa, a holiday working visa may only be granted once and cannot be renewed.
