On April 26, 2026, Chile took the next step in its phased workweek reduction when the 40-Hour Law (Law No. 21,561) lowered the legal workweek from 44 to 42 hours. The law applies to employees whose employment relationships are governed by Chile's Labor Code, which includes the vast majority of private-sector workers.
The law is being implemented in stages over five years, similar to Colombia's recent reduction in working hours, with one final decrease to go before the workweek reaches 40 hours.
The timeline looks like this:
- April 2024: 45 → 44 hours
- April 2026: 44 → 42 hours
- April 2028: 42 → 40 hours (final stage)
The final reduction takes effect on April 26, 2028. While that may seem far away, updating contracts, schedules, payroll systems, and workforce planning often takes longer than many employers expect.
The transition to 42 hours required more planning than many organizations anticipated, and many of those same steps will need to happen again before the move to 40 hours.
Employee Pay Does Not Change
The reduction in working hours can’t be accompanied by a reduction in pay. Employees continue receiving the same salary while working fewer ordinary hours. The law reduces the maximum legal workweek, not employee compensation.
How the Reduction Is Implemented
The law encourages employers and employees to agree on how the shorter workweek will be introduced. Depending on the workplace, that may involve:
- Shortening each workday
- Ending the workday earlier on selected days
- Adjusting shift schedules
- Redistributing hours across the workweek where permitted
If an agreement can’t be reached, the Dirección del Trabajo provides default formulas. During the 2026 reduction, for example:
- Five-day schedules generally reduced one hour on two workdays.
- Six-day schedules generally reduced 50 minutes on two days and 20 minutes on a third.
A similar approach is expected when the final reduction takes effect in 2028.
What the 2026 Workweek Transition Required
Reducing the workweek by two hours involved far more than simply updating employee schedules. Employers had to make operational changes to comply with the new 42-hour limit while also adapting to several broader changes introduced by the 40-Hour Law.
Update Employment Contracts
Working hours had to be formally amended in employment contracts or contract annexes. The Dirección del Trabajo made clear that the reduction had to reflect an actual decrease in hours worked, not simply an adjustment on paper.
Redesign Shift Schedules
Many employers needed to redesign shift patterns to comply with the new limits while maintaining operational coverage. Where employers and employees could not agree on how to reduce working hours, the Dirección del Trabajo's default distribution rules applied.
Recalculate Payroll
Lower ordinary working hours changed overtime thresholds, requiring payroll systems and labor-cost models to be updated.
Update Time-Tracking Systems
Electronic attendance systems had to reflect the new legal maximum working hours and comply with the Dirección del Trabajo's electronic timekeeping requirements.
Negotiate With Unions
Where unions exist, employers must negotiate how the reduction will be implemented. If no agreement is reached, the Dirección del Trabajo's default rules apply.
Additional Changes Under the 40-Hour Law
Beyond reducing weekly working hours, the law also introduced:
- Flexible time bands for parents and primary caregivers of children up to age 12
- The option (not obligation) to distribute working hours across four days instead of five or six
- Greater flexibility to average working hours over certain multi-week periods where legally permitted
- Additional flexibility to compensate overtime with paid leave in certain circumstances
- Updated rules affecting some employees previously excluded from ordinary working-hour limits
- Revised rules for domestic workers
- Updated provisions for part-time employees working 30 hours or less per week
Preparing for the Final Reduction
The transition to a 40-hour workweek is still two years away, but many of the same 2026 planning steps will likely be required again before the 2028 deadline.
Companies with employees in Chile should begin preparing now.
Budget for Higher Labor Costs
Although salaries remain unchanged, fewer scheduled hours may increase overtime costs, require additional hiring, or lead to changes in shift structures.
Review Exempt Positions
Whether an employee qualifies for an exemption from ordinary working-hour limits depends on the specific role and is evaluated case by case by the Dirección del Trabajo. Existing classifications may be worth reviewing before 2028.
Begin Union Discussions Early
Organizations with unionized workforces may benefit from beginning discussions well before the deadline, since negotiating implementation can take considerable time.
Watch for Additional Guidance
Before each phase of the rollout, the Ministerio del Trabajo and the Dirección del Trabajo published additional regulations and official guidance. Similar guidance is expected ahead of the 2028 transition, including details on how the final two-hour reduction should be distributed across the workweek.
Bottom Line
The transition to a 42-hour workweek has only recently taken effect, but the move to 40 hours is already on the horizon. While the deadline isn't until 2028, many of the same planning steps required in 2026 will likely need to happen again.
Starting those discussions early, and keeping an eye on new guidance from the Dirección del Trabajo over the next two years, can help make the transition significantly smoother.
