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Benefits Guide
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.
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Effective January 1, 2025, the minimum wage in Chile is set to $510,636 pesos per month. The law includes the possibility of increasing the minimum wage according to variations in the Consumer Price Index (CPI).
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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 pay can be lowered in order to accommodate the legal gratification bonus, but once a base pay is stipulated and agreed to with the employee, it cannot be lowered without the employee’s consent.
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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:
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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.
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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.
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18 Public holidays
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Grow your team in Chile with Remote
Want to employ workers in Chile? Companies hiring in Chile are typically required to either own a local legal entity or work with a global employment platform like Remote that can legally provide employment services in the country.
Remote can employ team members in Chile and keep you compliant. Remote can hire, onboard, and pay your Chile team so you don't have to set up local HR services in the region. Remote also makes it easy to pay contractors in Chile. Sign up now to get started or talk to an expert for more details.
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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.