Currency: Chilean Peso (CLP)

Capital: Santiago

Official language: Spanish

Payroll Cycle: Monthly

Paid Time Off

In Chile, employees are entitled to 15 days of paid leave a year after 1 year of employment. For employees who don't reach 1 year of seniority entitlement is prorated to 1.25 days per month.

Public Holidays

• New Year’s Day
• Easter
• 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

Additional regional holidays may also apply.

Individual Income Tax

The individual income tax depends on many variables, such as marital status, level of income, etc. The average ranges up to 35%

Employer Tax

Approximately, 7.68% of employee salary

Employment Contract Details

Employment contracts must be in writing and in Spanish.

‍Minimum Wage Requirements

The Minimum Wage in Chile is CLP 326,500 per month.

Probation Period

There is no legal provision on probation periods in Chile. Employers may agree in writing with employees probation periods.

Maximum working hours and overtime

Normal working hours are limited to 45 hours per week (Monday-Saturday), 9 hours per day plus 30 minutes per day for lunch. Overtime does not apply to home office workers or managerial roles and it is only allowed if previously authorized by the employer, enforced through the employment agreement.

Bonus and Expense Payments

There are 2 bonuses that must be paid in Chile, 13th & 14th salary are subjected to income tax and social security withholdings.

Parental Leave

• Maternity leave: employees are entitled to 6 weeks before childbirth up to 12 weeks after birth, a total of 12 to 18 weeks of leave. During maternity leave, employees receive an allowance equal to 100% of the salary paid by the government.
• Paternity Leave: employees are entitled to 5 business paid days funded by the employer.

Contracts ca be terminated by any party with cause or without cause. Severance payment is based on the employee’s length of labor relationship: the employer must pay the indemnity for seniority equivalent to 30 days of the last monthly remuneration for each year of service and fraction of more than 6 months, capped at 330 days of remuneration, 11 years.

Notice Period

In Chile, the minimum required notice period is 1 month's written notice or provide payment in lieu.

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