Hire in Chile

Typical time to hire

2-3 weeks for contractor, 3-6 weeks for full-time

Entity requirement

Chilean entity (SpA or SRL) or representative office.

EOR available

Yes — from $399/employee/month through a Corpshore entity

Contractor of record

Yes — from $39/worker/month

Standard workweek

40 hours (reduced from 45 under 2023 reform, phasing in through 2028)

Maximum weekly hours

40 hours

Minimum annual leave

15 working days

Public holidays

16 per year

Maternity leave

24 weeks (6 pre-natal + 12 post-natal + optional 6 parental)

Paternity leave

5 days, fully paid

Notice period

30 days written notice, or payment in lieu

Severance

30 days salary per year of service (up to 330 days / 11 years cap)

Probation

Not formally recognised; first contract is often fixed-term to serve this purpose

Overtime rules

50% premium. Maximum 2 overtime hours per day. Overtime agreements must be in writing.

Income tax range

0% to 40%

Corporate tax

27% (general regime) or 25% (Pro-PyME for SMEs)

Social contributions

Employee: ~18% (AFP pension ~10%, health 7%, unemployment 0.6%). Employer: ~4% (unemployment, occupational accident).

VAT / GST

19% (IVA)

Tax year

Calendar year (Jan-Dec)

Treaty network

Over 30 tax treaties; comprehensive OECD-aligned network

Worker classification

Codigo del Trabajo defines subordination and dependency as key factors. Boleta de honorarios (fee receipts) used for genuine contractors. Labour Directorate (Direccion del Trabajo) actively investigates misclassification.

Data protection

Ley 19.628 (1999) on protection of private life. A comprehensive reform aligned with GDPR has been debated since 2017 and is expected to pass.

Right to work

Work visa and RUT (tax ID) required. Employer must demonstrate the hire is necessary. Maximum 15% foreign workforce.

Non-compete

Limited enforceability. Must be compensated (at least 50% of salary), limited to 2 years, and restricted in scope. High-level executives only in practice.

Collective bargaining

Protected under the Codigo del Trabajo. 2016 reform strengthened union bargaining power. Union density ~20%.

Chilean banking system is modern and efficient. CLP transfers via Transferencias Electronicas are standard for payroll. Wise supports CLP.

• Workweek reducing to 40 hours by 2028 (currently phasing from 45)
• Chile is Latin America's most stable and transparent business environment (highest regional score on Transparency International's CPI)
• Gratificacion legal: employers must share 30% of net profits or pay 25% of annual salary (4.75 monthly salaries), whichever is lower
• Strong tech ecosystem, especially in fintech (Santiago is home to multiple unicorns)