Chile

Updated:

Employment

Employment agreements can be formed either orally or in writing. Written agreements are generally preferred, as in Chilean courts in the absence of written agreement, employees understanding of the terms and agreements is upheld.

Payroll

Salaries are paid monthly by the last day of every working month for work done between first to last day of the month.

HR & Labor

Working Hours: The maximum number of working hours a week is 45, with no more then two hours overtime per working day. Working Age: Employer cannot hire an employee below the age of 15. Employees between 15 and 18 years of age have special restrictions applied to them.

Immigration

In order to work in Chile as a foreigner, said worker must previously receive residence or legal permanency in the country which can be achieved by signing a work contract. Working activity may begin once a residence visa, or special work permit for foreigners with a visa being processed.

Minimum Wage

The monthly minimum wage is 257,500 CLP (382 USD)

Pension Fund

Pension fund contributions vary depending on the AFP and health plan. With minimum health plan, employer contributes 5% of total monthly payroll.

Pension fund contributions vary depending on the AFP and health plan. With minimum health plan, employee contributes 19% of total monthly payroll.

Public Holidays

Public holidays change every year depending on government approval. There are generally between 12-15.

August 15: Assumption Day
September 18: Independence Day of Chile
September 19: Army Day
October 09: Race Day Holiday
October 27: Reformation Day
November 01: All Saints Day
December 8: Immaculate Conception Day
December 25: Christmas Day

January 1: New Years Day
March 30: Good Friday
March 31: Holy Saturday
May 1: Labor Day
May 21: Navy Day
July 02: Saint Peter and Saint Paul Day Holiday
July 16: Our Lady of Mount Carmel
August 15: Assumption Day
September 17: Bridge Holiday
September 18: Independence Day of Chile
September 19: Army Day
October 15: Race Day Holiday
November 01: All Saints Day
November 02: Reformation Day
December 08: Immaculate Conception Day
December 25: Christmas Day

Sick Days

Sickness allowances are paid by the Institution where the employee is insured (based on a doctor illness confirmation).

Severance Payment

Employees are entitled severance payment of one months salary for each year they were employed by the company.

Advance Notice

While dependent on contract specifications, the standard notice period is 30 days.

Termination Procedure

Employer must provide the employee with 30 days of notice to the termination.

Vacation Days

Employees are entitled to 15 days of vacation for every 12 months of work.

Social Security

Employers are required to contribute .009% of wages

Employee deductions equal to 11.48% of their salary.

VAT

None