EWS helps you to hire an international workforce quickly and compliantly, without setting up a legal entity locally. If you’d like to get in touch about our employer of record solution in Chile, click here
Country Introduction – Chile
Capital – Santiago
Currency – Chilean Peso (CLP)
Population – 19.12 Million
GDP – $252.9 Billion USD
Language – Spanish
Major Religions – Christianity (Catholic)
Chile is situated along the western seaboard of South America. It extends approximately 2,700 miles (4,300 km) from it borders with Peru, to the tip of South America at Cape Horn, a point only about 400 miles north of Antarctica. A long, narrow country, it has an average width of only about 110 miles, with a maximum of 217 miles at the latitude of Antofagasta and a minimum of 9.6 miles near Puerto Natales. It is bounded on the north by Peru and Bolivia, on its long eastern border by Argentina, and on the west by the Pacific Ocean.
Chile is the 5th largest exporter of wine and the 9th largest producer. And not just any wine, but some of the best and finest selection of wines have been produced in Chile since the first wine grapes were planted in the country in 1554, brought by Spanish Conquistadores. Chile has more than 1,200 kilometers of viticulture valleys in 14 different areas, which produce more than 10 million hectoliters of wine per year.
Chile’s has 5 UNESCO World Heritage Sites that are categorized as cultural, giving you an insight into the human story threaded into the majestic landscape of the country. The five sites are the Churches of Chiloé, the Historic Quarter of the Seaport City of Valparaíso, Humberstone and Santa Laura Saltpeter Works, Rapa Nui National Park, and the Sewell Mining Town.
Contract of Employment
Employment contracts in Chile should always be in put in writing, in Spanish. The employment contract must outline the terms of employment such as; the notice period, severance pay, duties, start date of employment and the compensation. The compensation should always be stated in Chilean Pesos (CLP).
Probation Period
Up to a maximum of 6 months.
Termination
Notice period in Chile is 1 month either side by law.
Working Hours
45 working hours per week, Monday to Friday.
Overtime
Overtime is paid at a rate of 1.5x the salary rate. Overtime should be agreed in the employment agreement.
Annual Leave
Annual leave is 15 workings day per year, for employees who have completed 12 months of service.
Sick leave
An employee is entitled to sick leave provided they can produce a medical certificate within 2 days of the sick leave. The employer must forward the medical certificate to the health insurance institute (Fonasa/Isapres) who will pay for the sick leave. The employer has 3 working days to do this. The first 3 days of sick leave are unpaid. From day 4 onwards the employee will be entitled to payment for the sick leave.
Maternity Leave
Maternity leave in Chile is 30 weeks for expecting mothers. 6 weeks are taken before the expected birth and the remaining 24 weeks are taken after birth. Maternity leave is paid for by the health insurance (Isapres).
Paternity leave is 5 working days.
VAT / GST:
The standard rate of VAT is 19%
Income Tax
Chile taxes locals on global income earned regardless of it was earned in Chile or not. For foreigners only the income earned in Chile is taxed, after 3 years a foreigner will also be taxed on global income. Income tax is based on monthly tax units, with 1 monthly tax unit being the equivalent of 51,500 CLP.
0.00% – up to 13.5 Monthly Tax units
4.00% – 13.5 – 30 Monthly Tax units
8.00% – 30 – 50 Monthly Tax unit
13.50% – 50 – 70 Monthly Tax units
23.00% – 70 – 90 Monthly Tax unit
30.40% – 90 – 120 Monthly Tax unit
35.00% – 120 – 310 Monthly Tax unit
40.00% – 310+ Monthly Tax unit
Employer/Employee Contributions
The total employer payroll contribution in Chile is 4.39%, this is broken down as follows:
1.99% – Disability & Survival Insurance (SIS)
2.40% – Unemployment Insurance
The total employee contribution is 17.60%, broken down as follows:
7.00% – Health Insurance
10.00% – Pension
0.60% – Unemployment insurance
Public Holidays
There are 16 paid public holidays in Chile.
Severance Pay
After an employee has completed 1 full year of service, the employee would be entitled to 1 months salary for every year worked up until 11 years of service.
Work and Residence Permits (Expatriates)
There are 2 types of visas in Chile that allow foreigners to work in the country.
Working Holiday Visa – This visa is valid for 1 year for people aged between 18 and 35 and allows the holder to work in Chile, however this visa cannot be renewed. This visa is issued to nationals of the following countries only; Australia, Canada, Colombia, Czech Republic, Germany, Mexico, New Zealand and Peru.
Visa Subject to Contract – This visa is for any foreigners who have secured employment in Chile, the visa is valid for 2 years and can be renewed for another 2 year period. The application has to be stated while the employee is out of Chile and take 30 – 60 days to complete. The hiring company must be incorporated in Chile and have up to date VAT and Employee Insurance payments made. The local company must also outline how the hiring will help Chile.
Lithuania – Employer of Record
Kosovo – Employer of Record
Finland – Employer of Record
Namibia – Employer of Record
Nepal – Employer of Record
Spain – Employer of Record
Latvia – Employer of Record
Ireland – Employer of Record
Cyprus – Employer of Record
Czech Republic – Employer of Record
Italy – Employer of Record
Indonesia – Employer of Record
South Africa – Employer of Record
Tunisia – Employer of Record
Bosnia – Employer of Record
Moldova – Employer of Record
Five Tips For Improving Employee Engagement
Netherlands – Employer of Record
Germany – Employer of Record
France – Employer of Record
Portugal – Employer of Record
Bulgaria – Employer of Record
Austria – Employer of Record
Hungary – Employer of Record
Slovenia – Employer of Record
INCLUSIVITY IN THE TEAM MAKES EVERYONE WIN
Thailand – Employer of Record
Sri Lanka – Employer of Record
The Significance of an Employer of Record
Greece – Employer of Record
Mexico – Employer of Record
4 Reasons to Outsource Your Payroll
Five Recruitment Trends 2023
Malaysia – Employer of Record
Skill-Based Hiring and Benefits
Malta – Employer of Record
How To Practice Inclusive Recruitment
Israel – Employer of Record
Macedonia – Employer of Record
Jordan – Employer of Record
Macau – Employer of Record
Peru – Employer of Record
The Importance of Employer Branding
Bahrain – Employer of Record
South Korea – Employer of Record
Recruiting during a recession
Philippines – Employer of Record
USA – Employer of Record
Japan – Employer of Record
How To Setup A Business in 2023
Norway – Employer of Record
Managing Overseas Projects In 2023
Reason Of Expanding Your Workforce Globally
Croatia – Employer of Record
Colombia – Employer of Record
5 Ways To Speed Up Your Hiring Process
Egypt – Employer of Record
3 Ways To Streamline An Interview Process
Russia – Employer of Record
Saudi Arabia – Employer of Record
Hong Kong – Employer of Record
An Effective Hybrid Work Model
Turkey – Employer of Record
UAE – Employer of Record
Pakistan – Employer of Record
7 Things to Consider Before Accepting a Job
Kazakhstan – Employer of Record
3 Reasons to Encourage Employees to Generate Employer Brand Content
Denmark – Employer of Record
Sweden – Employer of Record
Bangladesh – Employer of Record
Kuwait – Employer of Record
How To Hire In The Age Of Hybrid Working
Australia – Employer of Record
Oman – Employer of Record
Qatar – Employer of Record
Ukraine – Employer of Record
Diversity – A Vital Hiring Strategy
Owning Every Moment of Your Hiring Experience
Serbia – Employer of Record
Maldives – Employer of Record
India – Employer of Record
Argentina – Employer of Record
Uzbekistan – Employer of Record
Belarus – Employer of Record
Brazil – Employer of Record
Chile – Employer of Record
Armenia – Employer of Record
3 Steps To Company Formation In The UK & Abroad
Romania – Employer of Record
Canada – Employer of Record
Morocco – Employer of Record