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hire in Chile

Chile PEO &
Employer of Record

CAPITAL CITY Santiago

SALARY PAYMENT IN Chilean Peso (CLP, $)

CONTRACT LANGUAGES Spanish / English

PAYROLL TAX 4.39%

PAYROLL CYCLE Monthly

TIME TO HIRE 24 hours

Hire and pay talents
with Horizons in
180+ countries

SIMPLE, COMPLIANT HIRING WITH HORIZONS PEO

Hire in Chile

A Chile Professional Employer Organization (Chile PEO) allows your company to hire employees in Chile with ease. A Chile PEO and Employer of Record solution means that your company can hire in Chile without needing to set up a local subsidiary, saving your company money, time, and ensuring full compliance with local laws. 

Facts & Stats

PEO Platform Hire in Chile, and pay employees through our platform or app. PEO Cost Our Chile PEO solution is the most affordable on the market. Time-to-hire Fast onboarding in Chile, hire in as little as 24 hours.
Contracts We draft labor contracts compliant with Chilean labor law. Local Benefits We administer all mandatory benefits and contributions in Chile. 185+ Countries It doesn’t stop with Chile — we are an international PEO
stay compliant with Chile labor laws

Employment Laws

Employment contracts in Chile

We strongly recommend that all employers in Chile provide every employee with a written contract of employment. The contract should have all necessary details of the employment agreement such as salary, vacation leave, working hours, duties, and so on. It should also be written in the official language of Spanish and use the Chilean peso currency.

Fixed-term
Probationary periodNone
Termination notice period1 month, or payment-in-lieu
Severance

1 month’s salary per year of service, up to 11 months

For severance calculation, a half-year worked counts as a full year of service

Indefinite
Probationary periodNone
Termination notice period1 month, or payment-in-lieu
Severance

1 month’s salary per year of service, up to 11 months’ salary

For severance calculation, a half-year worked counts as a full year of service

Working hours in Chile

The standard working week in Chile is 45 hours. Workers are entitled to at least one day off per week, and for most, this is Sundays. Overtime rates must be at least 180% of normal salary.

Hire compliantly in Chile without a local entity.

Quick, compliant hiring in 24 hours—no subsidiary required.

Public holidays in Chile

Chile has a range of national public holidays that are celebrated annually. In 2024 these holidays are:
Date Holiday name
1 Jan, 2024 New Year’s Day
2 Jan, 2024 Day off for New Year’s Day
29 Mar,  2024 Good Friday
30 Mar, 2024 Holy Saturday
1 May, 2024 Labor Day / May Day
21 May, 2024 Navy Day
20 Jun, 2024 National Day of Indigenous Peoples
29 Jun, 2024 Saint Peter and Saint Paul
16 Jul, 2024 Our Lady of Mount Carmel
15 Aug, 2024 Assumption of Mary
18 Sep, 2024 National Day
19 Sep, 2024 Army Day
12 Oct, 2024 Day of the Discovery of Two Worlds
31 Oct, 2024 Reformation Day
1 Nov, 2024 All Saints’ Day
8 Dec, 2024 Inmaculate Conception Day
25 Dec, 2024 Christmas Day

Vacation leave in Chile

Workers in Chile with at least one year of service with their employer are entitled to a minimum of 15 days of paid vacation leave.

Sick leave in Chile

Employees in Chile are entitled to paid sick leave if they present a medical note as proof of sickness. Generally, they will only be entitled to compensation for absences of more than three days.

Parental leave in Chile

Female employees in Chile are usually entitled to 18 weeks of paid maternity leave, with six weeks prior to the birth and 12 weeks after. Part of their compensation is subsidized, and the employer can choose to make up the remaining salary.

Fathers can take five days of paternal leave after the birth.

It may also be possible to take additional parental leave, which can be shared between the parents.

Terminations and severance in Chile

In general, employees in Chile are entitled to one month of notice prior to termination. They are usually also entitled to a severance payment of one month of salary, plus extra depending on their length of service with the employer.

Taxation and withholdings in Chile

Chile has a number of mandatory social security contributions for both employers and employees. The employee contributions are generally withheld by the employer. Employees usually need to pay the following:

  • 10% of salary to pension
  • Between 2.84% and 3.4% to life insurance
  • 7% to health insurance
  • 0.6% to unemployment insurance

Employers generally need to contribute between 0.9% and 4.4% of salaries to workplace accident insurance and unemployment insurance, as well as 2.4% to an unemployment fund.

Income tax in Chie is between 0% and 35.5%, depending on income level.

Corporate tax in Chile is generally 25%.

Health coverage in Chile

Employees have to contribute to health insurance, and these contributions are generally withheld by their employer (see above). Some employers do choose to offer additional private medical insurance as a benefit.

hassle-free Chile compensation & benefits

Compensation & Benefits

Compensation laws in Chile

The minimum wage for employees in Chile is 460,000 pesos per month for full-time workers.

Minimum Wage Country Comparison Chart (Per month in USD)
Switzerland (Geneva) $4,000
Italy $2,255
Australia $1996
Algeria $156
Uzbekistan $22
Benefit management in Chile

Building a benefits system for your Chilean workforce can be difficult and complicated to navigate if you are not familiar with the country, its customs, and its employment laws. To set it up independently, it can take several weeks and potentially lead to unexpected delays.

Outsourcing your benefit management process ensures that you fully understand and adhere to the rules, ensuring your compliance and speeding up the process significantly. At Horizons, our Chile employment experts will help you to find and arrange your benefits, advise on your strategy, and ensure compliance with the law.

Hire in Chile in 24h
without your own local entity.

With Horizons, you get quick service, transparent pricing, and expert support.

FAQs

A Chile PEO and a Chile EOR are two types of companies which specialize in providing human resources services to businesses in Chile.

The main difference between a Chile PEO and a Chile EOR is in the scope of their services.

Chile PEOs provide a full range of HR services, including payroll, benefits administration, and employee recruiting—all under one roof as a co-employer. Engaging a Chile PEO is essentially outsourcing your HR duties in Chile.

Chile EORs actually take over as the legal employer of your employees based abroad. Chile EORs become responsible for labor compliance for your employees in Chile.

At Horizons, we offer both PEO and EOR services in Chile. Get in touch now and let us know what service you are seeking.

A PEO in Chile can feasibly hire both local and foreign nationals to work in Chile.

However, the ability of Horizons to sponsor your foreign national employee in Chile may be limited due to visa quotas practiced in many countries.

Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.

In most cases, Horizons’ Chile PEO can hire & onboard your employee within 24 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Chile.

It is possible to get a work visa in Chile. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Chile are limited, however—get started today to secure your employees’ visa spot.