Hidden Gems
Chile
Min. wage
(x12 payments)
CLP 553,553 /mo
About the minimum wage
Employer tax
Annual leave
15 days
Learn about annual leave
Notice period
30 days min
Termination and notice info
Updated
Oct 2026
Standard contract, written within 15 days of starting; terminable only on the grounds listed in the Labour Code with written formalities
Limited to 1 year (2 for managers and degree-holders); converts to indefinite on second renewal or continued work after expiry.
Workweek dropped to 42 hrs on 26 April 2026 under the 40-Hour Law (40 hrs by 2028); overtime capped at 2 hrs/day at +50%
No general probation period; employers typically use an initial fixed-term contract to evaluate new hires
No statutory 13th salary, but mandatory legal gratification (profit-sharing) applies; Sept/Dec aguinaldos are customary
Regulated professions (law, health, accounting) require registered Chilean qualifications to use the title
From Aug 2026: 3.5% pension-reform contribution incl. disability/survivor insurance (phasing to 8.5% by 2033), 2.4% unemployment insurance (AFC; 3% fixed-term) and work-accident insurance from ~0.93%, on pay capped at 89.9 UF/mo
10% AFP pension plus fund commission (~0.5-1.5%), 7% health (FONASA/ISAPRE) and 0.6% unemployment insurance, capped at 89.9 UF/mo (2026). Progressive income tax (0-40%) varies.
In addition to statutory leave, employees are entitled to the following statutory benefits:
Employers are required to make contributions to social security programs on behalf of their employees. Benefits derived from social security are:
Work accident insurance under Law 16,744 is fully employer-funded — a base premium of ~0.93% plus a risk-rated additional premium up to ~3.4% — administered through mutuales or the state ISL.
Employees dismissed for business needs with at least one year of service are entitled to severance of 30 days' pay per year of service (fractions over 6 months count as a full year), capped at 330 days (11 years) with the monthly salary base capped at 90 UF, plus 30 days' written notice or one month's pay in lieu.
Chile has no statutory 13th-month salary, but profitable employers must pay legal gratification; most opt for Article 50, paying 25% of annual remuneration capped at 4.75 monthly minimum wages per year, usually prorated monthly.
P.S. our team speaks multiple languages and we'd love to chat in your preferred language if requested.
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. RemoFirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), Australian Dollars (AUD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees are paid on time. To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.
Whenever the employee or employer has a question about, or anything else related to international employment, they can speak with our customer support team to get answers from our team of experts.
