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Chile is a country on the western side of South America, bordered by Peru, Bolivia, and Argentina. It occupies a long narrow strip of land between the Andes mountain range and the Pacific Ocean. Chile is considered a developing country with a high-income economy, and has the highest degree of economic freedom in South America due to its efficient judicial system and prudent public finance management.
There are 2 different rates for minimum wage in Chile, one for minors and retirees, and one for working adults. The rate is CLP$400,000 per month for working adults and CLP$283,471 for minors and those over 65.
A full workweek in Chile lasts 45 hours. An employer can extend the day by no more than 2 hours per day, or 10 hours a week. Overtime worked is paid at a rate of 150% of the regular salary.
Pregnant employees in Chile can take 30 weeks of paid maternity leave, starting 6 weeks before the delivery and then 24 weeks after, this leave is paid by the country’s health insurance agency. Fathers receive 5 days of paid leave after the birth and can also share some of the mother’s maternity leave (up to 6 weeks), which is paid at 100% of the normal salary. Along with regular paid leave, mothers of children under 18 receive an additional 10 days of leave.
Employees in Chile receive sick leave benefits if they can provide proof from a medical professional within 2 days of the leave beginning. The first 3 days are unpaid, and day 4 and on are paid by the employer (subject to a cap).
There are 16 public holidays in Chile, and employees who have worked at least 1 year at their company are entitled to 15 days of paid time off per year. Additionally, employees in Chile can also receive Carer’s Leave and Adoption Leave.
In Chile there is no at-will termination, meaning employers must provide cause for terminations. The cause can be selected as one of these options:
It is common for Chileans to litigate terminations, so there needs to be documentation of the situation — employers could become liable for attorneys’ fees and other damages if they are found guilty of wrongful termination.
Employees in Chile are due 1 month of termination notice by law. Much of the time this month of notice is paid out instead of asking the employee to work for one more month.
In the event of termination, the employee is due a severance payment of 1 month salary for every year worked (with a max of 11 years).
Employees in Chile are entitled to a government-mandated “legal gratification” bonus that is typically paid monthly, and can be calculated in 2 ways:
While not required, it is also common to pay a 13th month bonus “aguinaldo” on Chile’s Independence Day and around the December holidays.
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You've sourced a full-time employee or contractor located in a country where your company is not incorporated.
Pass us the details of your candidate and we will let you know exactly what it costs to employ your candidate in that country.
Sit back and relax as we onboard your new team member and take care of all the local compliances and admin work.
It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so Remofirst will hire and pay your employee on your behalf while you manage their daily duties. Remofirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.
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.
