Payroll and Benefits Guide Chile

Last updated: Jun 11, 2023

Chilean Peso (CLP)
Employer Taxes
Payroll Frequency
Employee Costs
Date Format
Fiscal Year
1 January- 31 December
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Employer Payroll Contributions




Disability and Survival Insurance (SIS)


Total Employment Cost


Employee Payroll Contributions




Unemployment Insurance


Health Plan


Total Employee Cost


Employee Income Tax

*1 Monthly Tax Unit = approximately 51,500 CLP


Up to 13.5 Monthly Tax Units


13.5 – 30 Monthly Tax Units


30 – 50 Monthly Tax Units


50 – 70 Monthly Tax Units


70 – 90 Monthly Tax Units


90 – 120 Monthly Tax Units


120 – 310 Monthly Tax Units


310 + Monthly Tax Units

Employer taxes


Employee taxes


Minimum Wage


The monthly minimum wage in Chile is 440,000.00 CLP. The minimum wage is expected to increase as follows:

  • $460,000 pesos as of 1st September 2023
  • $500,000 pesos as of 1st July 2024




Payroll Cycle


13th Salary

There are no provisions in the law regarding 13th salaries.

Working Hours


A full workweek in Chile is 45 hours over 5 or 6 days. The employer has the right to extend the day by no more than 2 hours a day or 10 hours a week. The Chilean labor code recommends daily rest periods, a midday meal (as part of a break for at least half an hour), a weekly rest day on Sundays, and national holidays.

Employees delivering services providing technical support, working in public shops, or in the entertainment industry and therefore required to work on Sundays and national holidays, are provided with rest days on different days.

In 2023, Chile approved a 40-hour workweek law reducing the length of the working day to improve the quality of life of workers who are governed by the labor code.

This law will be implemented gradually as follows:

One year after implementation: the working week will be reduced from 45 to 44 hours.
Three years after implementation: the working week will be reduced to 42 hours.
5 years (in 2028) after implementation: the working week will be reduced to 40 hours.
Although this law is set to be implemented gradually, many companies have already put a 40-hour work week into effect.


Overtime is paid at a rate of 150% of the regular pay.  

Working Week



Paid Time Off

Employees who have been employed for at least 1 year are entitled to 15 working days of paid leave. After working for 10 years, an extra day is added for every 3 years of service.

Vacation Days
Public Holidays

Public Holidays

Public holidays that fall on the weekend are usually lost.

Sick Days

In Chile, employees are entitled to sick leave if they can provide a medical certificate within 2 days from the beginning of the leave. The employer must then forward the certificate to the health insurance within 3 days.
For the first 3 days of sick leave the employee is not entitled to pay.
From the 4th day on employees are entitled to sick pay which is paid by social security, however, it may be subject to a cap.

Maternity Leave

In Chile, the woman is entitled to 18 weeks of maternity leave, six weeks of paid prenatal leave and twelve weeks of paid postnatal leave. Following completion of the twelve-week postnatal leave, new mothers have the right to request a further twelve weeks’ leave.

During the pregnancy, the woman is not required to participate in activities that would endanger her health (i.e. heavy lifting). If this is a requirement of the job, the employer must reassign her to a different position during her pregnancy without pay reduction.

Also during the entire pregnancy and up to eighteen months after the birth, the company may only terminate the employment contract of the mother with authorization of a labor court.

Maternity and paternity leave are paid for by the government or the company health insurance provider.



Paternity Leave

Fathers are entitled to 5 days of paid paternity leave.
After the 7th week of birth, the mother can opt to transfer some or all of her maternity leave to the father.

Parental Leave

Female employees are entitled to 10 days of parental leave for a child under the age of 18. While the employee is entitled to be paid they must make up the time taken off at a later date.

Other Leave

Bereavement Leave- If a member of the employee’s immediate family passes away, the employee is entitled to 3 days of paid leave.



Termination Process

In order to terminate an employee, the cause must first be decided. By law, the following reasons are valid reasons for termination:

  • Mutual agreement, resignation, or expiration of a contract
  • Breach of contract (employer must be able to provide proof)
  • Company needs or reorganization (the most common reason for the dismissal of an employee)

The employer must prepare a letter for the employee stating the cause for termination as well as the effective date and it must be signed in person by the employee or sent by certified mail to their home address. In addition, the same letter must be filed with the Chilean Labor Ministry. It is common that the employee is notified on the last day of work.

After the termination letter is given, the employer must prepare a severance agreement, which must include the cause for termination as well as the amount that will be paid out to the employee. The severance agreement must be signed within 10 days of the termination.

In the case of a mutual agreement, both parties must sign a document acknowledging that both parties have agreed that the employment contract is terminated. A severance agreement must also be signed within the first 1-2 weeks following the termination date.

Notice Period

The notice period is 1 month by law. It is common that the notice period is waived and payment is made in lieu.

Severance Pay

If the employee has completed at least 1 year of employment, they are entitled to severance pay. For every year of service up to 11 years, the employee is entitled to 1 month’s salary. In addition, after one year of employment, the employee accumulates an additional month of severance pay if they have worked for at least half of the following year.

Probation Period

Probation period is not allowed by law in Chile.

Common Benefits


Home office allowance, private health insurance/allowance, and depending on the position/industry a
meals allowance (Colación).



Anyone who comes to Chile with the intention to work even if they don’t require a visa to enter must receive a work visa.

There are two kinds of work visas available to foreigners:

Visa Subject to a Contract – for candidates who have secured an employment contract prior to arriving in Chile. It is valid for 2 years and can be renewed for an additional 2 years. After that, a candidate needs to apply for permanent resident status, which would allow the candidate to continue to work in Chile.The process requires about 20-30 days to complete. The application should be filed 30-60 days before the expected arrival.

To get the permit, the hiring company must be incorporated in Chile, demonstrate that the hiring will help Chile and have their VAT and employee insurance paid for the past 3 months.

Working Holiday Visa – People from Colombia, Mexico, Peru, Germany, Canada, Australia, Czech Republic, and New Zealand who are between the ages of 18 and 35 can apply for a 1-year visa that allows them to work in Chile. The visa cannot be renewed.



19% standard rate.

Stay up to date on payroll & employment law changes

Version History

June 11, 2023
Minimum wage has been updated.
May 30, 2023
Working week has been updated.
November 6, 2022
Maternity leave has been updated.
April 10, 2022
The monthly minimum wage in Chile is now 350,000 CLP for employees over the age of 18 and under 65.
November 26, 2020
Minimum wage: raised to 326,500 (from 320,500)

Questions & Answers

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Sila P.
Sila P.
1 year ago

Do all employees receive the new basic food basket contribution?

Erez Greenberg
Erez Greenberg
1 year ago
Reply to  Sila P.

In order to qualify for the Contribution of the Basic Basket, you have to have been receiving Family Allowance, Family or Maternal Allowance, or have belonged to Chile Solidario (Family Ethical Income) during the following dates:

The Basic Basket Contribution can be received from May 2022 to August 2022 if the person had any of these benefits in force as of December 2021 (Family Subsidy or one of the others mentioned).
Those who have any of these benefits in force by April 2022 can receive the Basic Food Basket Contribution from September to December 2022.
The Basic Basket Contribution will be available until April 2023 if the person has one of these benefits as of August 2022.

6 months ago

Are salary increases mandatory or required by law?

1 month ago
Awaiting for approval

Hi when I request the guide, its sending me the one from Peru.

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Payroll and Benefits Guide in Chile

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Payroll and Benefits Guide
in Chile

What’s covered in this guide:

  • Employer/employee contributions
  • Minimum wage
  • Working hours
  • Visa requirements

And more...

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All questions are answered by our in-house compliance department working in conjunction with our local in-country partner for this specific country

Public Holidays Calendar

Chile 2023
Day Date Holiday Notes
Sunday Jan-1 New Year´s Day
Monday Jan-2 Additional holiday
Friday Apr-7 Good Friday
Sunday Apr-9 Holy Saturday
Monday May-1 Labour Day
Sunday May-21 Naval Glory day
Wednesday Jun-21 National day of indigenous peoples
Monday Jun-26 Saint Peter and Saint Paul day
Sunday Jul-16 Our Lady of Mount Carmel
Tuesday Aug-15 Assumption of Mary
Monday Sep-18 National Independence Day
Tuesday Sep-19 Day of the Glories of the Army
Monday Oct-9 Columbus Day
Friday Oct-27 Reformation Day
Wednesday Nov-1 All Saints Day
Friday Dec-8 Immaculate Conception Day
Monday Dec-25 Christmas Day