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Expand Your Employer of Record Services In Chile
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Chile At a Glance
Chile At a Glance
Chile At a Glance
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Country Information
Easily navigate Chile Employment Landscape
Easily navigate Chile Employment Landscape
Easily navigate Chile Employment Landscape
Discover everything you need to know about working in Chile with practical, trustworthy resources for both employees and employers. We explain the essentials of Chile’s employment rules under the Chilean Labour Code, how foreign nationals can work legally through the Servicio Nacional de Migraciones (SERMIG) residence/work authorization pathways, and what to expect around employee rights, payroll, and compliance.
Weekly Working Hours
National Holidays
Leave
Types of Employment
Employment Costs
IC Class Factors
Labor Leasing
Minimum Wage
Medical Benefits
Probationary Periods
Termination Notice
Severance
Understanding Weekly Working Hours in Chile
Explore Work hours Employee rights in Chile
Explore Work hours Employee rights in Chile
Explore Work hours Employee rights in Chile
In Chile, working hours are regulated under the Chilean Labour Code, with the standard workweek currently capped at 44 hours following the first phase of the 40-Hour Workweek Law. This limit will be gradually reduced to 42 hours in 2026 and 40 hours by 2028, without reducing employee wages—supporting productivity while improving work–life balance.
Any hours worked beyond the agreed weekly schedule are considered overtime and must be compensated at a minimum premium of 50% above the regular hourly wage. Overtime is generally limited to temporary or exceptional needs and must be agreed in writing. While Chilean law sets the baseline overtime rate, collective agreements or employment contracts may provide more favorable compensation in certain sectors.
Public Holidays and Employee Leave in Chile
Overview of Public Holidays & Employee leave
Overview of Public Holidays & Employee leave
Overview of Public Holidays & Employee leave
In Chile, employees are entitled to paid public holidays, allowing time off to observe national and religious celebrations. Alongside public holidays, Chilean labour law provides a range of statutory leave entitlements that support employee well-being and family life.
Workers are entitled to paid annual leave, sick leave, and maternity leave, with additional protections related to pregnancy and childcare. Parental leave is also available following childbirth, enabling shared caregiving responsibilities. In specific circumstances, employees may take special paid leave for events such as marriage, bereavement, the birth of a child, or other legally recognised personal matters.
Understanding Weekly Working Hours in Chile
Explore Employment Contracts & Costs in Chile
Explore Employment Contracts & Costs in Chile
Explore Employment Contracts & Costs in Chile
In Chile, employers are required to issue written employment contracts that clearly specify job responsibilities, salary, working hours, benefits, and workplace conditions. These contracts must be signed within the legally prescribed timeframe and comply with the Chilean Labour Code, ensuring transparency and protection for both employers and employees.
Types of employment
Permanent (indefinite) employees
Fixed-term employees
Temporary or agency workers, engaged through authorised staffing providers
Independent contractors, who operate under civil or commercial service agreements and are not covered by standard employee protections
From a cost perspective, employing staff in Chile involves mandatory employer contributions in addition to gross salary. Employers are responsible for contributions related to pension funds (AFP), health insurance, unemployment insurance, and work-related accident and disability coverage. These statutory contributions typically add around 25%–30% to the total employment cost, depending on salary level, risk classification, and benefit structure.
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ICC classifications, labor leasing, and wage rules in Chile
Labor Regulations & Independent Contractor Classification in Chile
Labor Regulations & Independent Contractor Classification in Chile
Labor Regulations & Independent Contractor Classification in Chile
The key difference between a Freelance Service Contract and a Service Contract lies in work independence. Freelancers operate freely, managing their own schedule, workflow, and substitutes without fixed attendance. In contrast, a Service Contract focuses on achieving a defined result, with clearly outlined terms and limited flexibility, though the contractor still works independently.
Labor Leasing
In Chile, supplying workers to perform duties at a third-party workplace—known as temporary services or labour intermediation—is permitted only through authorised temporary services companies (Empresas de Servicios Transitorios). These providers must be duly registered and comply with labour, wage, and safety regulations to protect temporary workers and ensure compliance.
Minimum Wage Requirements
Chile enforces a statutory national minimum wage, set and periodically updated by the government. Employers must comply with this legal wage floor nationwide. Collective bargaining agreements may establish higher minimum salaries or benefits for specific sectors or roles, but they cannot fall below the statutory minimum.
How pay and health coverage apply during employee illness in Chile
Medical Benefits in Chile
Medical Benefits in Chile
Medical Benefits in Chile
In Chile, employee sick leave and income protection are managed through a public health insurance system, rather than extended employer-paid salary continuation.
When an employee is unable to work due to illness or injury, sick leave must be certified by an authorised medical professional and approved by the relevant health institution (FONASA or ISAPRE). Once approved:
Sick pay is funded by the health insurance system, not directly by the employer
The employee receives a subsidy for temporary incapacity (Subsidio por Incapacidad Laboral)
The payment amount is calculated based on the employee’s average taxable earnings, subject to statutory caps
Sick pay generally starts from the first day of approved medical leave
For work-related accidents or occupational illnesses, compensation and wage replacement are provided through Chile’s workplace accident insurance system, ensuring medical coverage and income support.
Key rules governing probation duration and employer notice requirements.
Probationary Periods & Termination Notice in Chile
Probationary Periods & Termination Notice in Chile
Probationary Periods & Termination Notice in Chile
In Chile, employment contracts may include a probationary (trial) period, but it is not automatically granted by law. Any probation period must be explicitly agreed in writing within the employment contract. During this initial phase, either party may terminate the employment more easily, subject to contractual terms and legal safeguards.
Termination Notice Periods in Chile
Once the employment relationship is established, Chilean labour law applies uniform termination rules, regardless of employee tenure:
Employers must generally provide 30 days’ notice prior to termination, or
Pay compensation in lieu of notice equal to one month’s salary
In cases of termination without cause, employees may also be entitled to statutory severance (indemnización por años de servicio), calculated based on length of service, in addition to notice pay.
Collective bargaining agreements or employment contracts may provide more favorable termination conditions for employees, but they cannot reduce the minimum protections guaranteed by law.
How termination compensation and background screening are regulated under Austrian labor law
Severance Pay & Pre-Hire Checks in Chile
Severance Pay & Pre-Hire Checks in Chile
Severance Pay & Pre-Hire Checks in Chile
In Chile, severance pay is not accumulated through monthly employer contributions or a central fund. Instead, severance—known as indemnización por años de servicio—is calculated and paid at the time of termination, provided the dismissal is without legal cause.
Eligible employees are generally entitled to:
One month of the last monthly salary for each completed year of service,
Capped at 11 months, unless a more favorable contract or collective agreement applies.
In addition, employers must usually provide 30 days’ notice or pay compensation in lieu of notice, alongside other accrued entitlements.
