Hire employees in Chile. No entity needed.
Usually, to hire in Chile, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.
Chile also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in Chile quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.
All the necessary benefits for Chile
built right in
Deel allows you to provide localized benefits for employees in Chile within minutes. All in one manageable online dashboard.
- Health Insurance
- Life Insurance
- Pension Fund
- Profit-Sharing Bonus
- Unemployment Insurance
- Workers Compensation Insurance
Our quickstart guide to hiring in Chile
Navigate the tabs below to learn everything you need to know about hiring an employee in Chile
Minimum Wage Requirements
Individual Income Tax
The individual income tax ranges from 0% to 35.5%. Income tax is calculated according to progressive rates. Non-residents may be subject to an additional flat tax rate of 15%.
|Gross Annual Income||Tax Rate (%)|
|Up to CLP 690,268.50||0%|
|Up to CLP 1,533,930||4%|
|Up to CLP 2,556,550||8%|
|Up to CLP 33,579,170||13.5%|
|Up to CLP 4,601,790||23%|
|Up to CLP 66,135,720||30.4%|
|Up to CLP 15,850,610||35%|
|Over CLP 15,850,610||35%|
The employer cost is generally estimated between 8% and 46% of the employee salary.
- Life insurance - 1.85%
- Unemployment insurance - 2.4%
- Accident insurance - 0.93%
- Legal Profit sharing - CLP 138,542
As Chile has a high fixed (Legal Profit sharing) value that represents 1/3 of the minimum salary, the higher the salary, the lower the employer cost.
Overtime Pay & Maximum Hours
Pregnant employees who have contributed to Social Security for six months are entitled to 126 days of paid leave. 42 days must be taken before the child's birth. The remaining days can be divided into periods of time, or the employee can return to work part-time until the newborn is 18 months. The employee usually receives 80% of the salary during this period, calculated by the personal Health Insurer that will be responsible for this pay.
The employee may extend leave additional unpaid. The length will depend on a medical decision or at the employer's discretion.
Employees are entitled to five working days of paid paternity leave. The leave will start as of childbirth and employees must present the certificate of birth. The employee will receive 100% of the salary during this period, and the employer will be responsible for this pay.
The employee can’t extend leave.
In Chile, no law covers parental leave. However, employees may be entitled to maternity leave and paternity leave.
Employees are entitled to unlimited paid sick leave. The first 3 days are unpaid and considered as a qualifying period. This leave is paid at different rates and by different payers depending upon length:
|0 - 3 days||0%||N/A|
|4 - unlimited days||70% of base salary||Health Insurance (ISAPRE)|
When the Health Insurance Institution pays this leave, limits vary per the employee’s insurer and salary.
Terminations in Chile can be complex. There is no at-will termination in Chile for employers. Employers must ground terminations on a company-related business need.
Compliant terminations include:
- Voluntarily by the employee
- By mutual agreement
- Unilaterally by the employer based on:
- Probation period
- Objective grounds
- Disciplinary dismissal
- By the expiration of the contract
After the end term, the employer must confirm in writing to the employee that the agreement won't be renewed for fixed-term contracts.
Severance for Employees
In Chile, all employees who are terminated due to general grounds or without notice are entitled to severance pay. Severance pay is 30 days of salary per year of service up to 330 days based compensation.
The monthly severance compensation cannot exceed a maximum of 90 UF (USD 3,500) unless the employee is dismissed without notice.
Paid Time Off
Chile celebrates both 15 national and 2 regional holidays based on the location of the employee.
National public holidays for 2022 include:
- New Year’s Day
- Labor Day
- Navy Day/Battle of Iquique
- St. Peter and St. Paul Day
- Virgin of Carmen Day
- Assumption of the Virgin Mary
- Independence Day
- Glorias del Ejercito Day
- National Holiday
- Encounter of Two Worlds Day
- Evangelical and Protestant churches Day
- All Saints Day
- Immaculate Conception Day
- Christmas Day
Employment Contract Details
Contracts must be in Spanish and can be bilingual. They must be in writing and signed by both parties. A contract must include:
- Start date
- Length of the employment
- Job description
- Remote work conditions
- Right to disconnect conditions
- Termination conditions
Hiring in Chile, hassle-free
With Deel, your business can easily hire employees in Chile. No more worrying about local laws, complex tax systems, or managing
international payroll. Deel takes care of everything in 150+ countries.
Estimate Employer Cost
*of employee salary
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