Global Hirings

September 5, 2023

3 mins

‍Employing in Chile - Labor Laws, Payroll, and Visa Insights

Chile stands as a beacon of economic progress in South America, holding the impressive 2nd position among the 32 countries in the region. Its market-oriented economy and thriving foreign trade activities have earned it the distinction of being the 20th freest economy in the 2022 index. Moreover, Chile's significance as a top producer of copper, lithium, nitrates, and other minerals further cements its prominent position on the global stage.

Employing in Chile

Chile boasts a dynamic free market economy that nurtures well-rounded and highly skilled workers, making them an ideal fit for your business. However, employers must remain informed about the rules and regulations when considering onboarding employees from the country. The upcoming sections shed light on some of Chile's essential labor laws.

Employee Contract

In Chile, official employment contracts are required to be in Spanish. If both parties prefer, an English translation may be included, but it must always be accompanied by a Spanish version.

Probation Period

Chilean employees typically undergo a probation period lasting from 1 to 3 months.

Employee Leaves

Annual Leave 15 days

Sick Leave 2 days

Maternity Leave 30 weeks

Payroll Cycle

Chile releases payroll every month.

Minimum Wage

Minimum wage in Chile is determined based on an employee's age. For those aged 18 to 65 years old, the minimum wage stands at CLP 400,000 per month, while for employees under 18 years old and over 65 years old, it is CLP 298,391 per month.

Overtime Pay

In Chile, the regular working hours constitute 45 hours per week. Overtime hours performed during a typical working day entitle employees to receive 150% of their hourly rate. On rest days, employees are compensated at 130% of their regular rate for their work.

13th Month Pay

Chilean employees typically receive 13th-month pay as a customary practice.

Employee Benefits

  • Pension Plan
  • Statutory Leaves
  • Health Benefits
  • Unemployment Insurance


Chile's standard Value Added Tax (VAT) rate is 19%.

Offboarding & Termination

Termination Process

In Chile, employment contracts are not generally terminated at-will. The termination decision must be based on valid reasons, and either party is required to provide a written notice regarding the contract termination.

Notice Period

During the probation period, Chilean employees are required to adhere to a notice period of up to 7 days. Once outside the probation period, the notice period extends to up to 30 days.

Severance Pay

Employees in Chile who are terminated without just cause, due to redundancy, or as part of a collective dismissal are entitled to receive severance pay equivalent to 30 days of remuneration for each year of service.

Visa and Immigration

Foreign nationals planning to work in Chile must obtain a work visa to ensure legal employment in the country. The Chilean work visa is valid for one year and can be extended upon renewal.

Alternatively, a Holiday working visa may be granted to foreign workers intending to work in Chile for a year. However, unlike the standard work visa, the holiday working visa is a one-time grant and cannot be renewed.


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If you're considering hiring employees or contractors in Chile or seeking compliant payroll solutions, reach out to us or book a demo at For further insights, follow us on Twitter @niuralhq. Make informed decisions and ensure a successful hiring process in Chile!

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