Image Source: Wikimedia Commons / Public Domain
1. Country Overview
Chile is one of Latin America’s most developed, stable, and transparent economies, renowned for high ease of doing business and thriving tech startups (Start-Up Chile).
2. Geography
Long, narrow strip of land between the Andes mountains and the Pacific Ocean.
3. Culture & Languages
Formal, sophisticated, and transparent corporate culture. Monday to Friday workweek.
4. History
High-income OECD member state with robust democratic institutions and open international trade treaties.
5. Labour & Employment Law History
Governed by the Labour Code of Chile (Código del Trabajo), supervised by the Labour Directorate (Dirección del Trabajo - DT). Workweek reducing from 45 to 40 hours progressively under Law 21.561.
6. Currency, Capital & Key Facts
7. Employment Snapshot
Statutory workweek is standardly transitioning to 40 hours. Written contracts must be uploaded to the electronic portal of the Dirección del Trabajo (MIDT) within 15 days of onboarding.
8. Payroll & Tax
Progressive second category tax (Impuesto de Segunda Categoría) up to 40%. Mandatory pension (AFP ~11.5%), health (FONASA/Isapre ~7%), and unemployment insurance (AFC ~2.4% employer, 0.6% employee).
9. Benefits & Leave
Minimum 15 working days of paid annual vacation (scaling after 10 years of service), plus 16 national public holidays.
10. Contractors & Worker Classification
Strict labor inspection (Dirección del Trabajo). Engaging honorarios contractors for regular, dependent positions generates immediate labour liabilities.
11. Immigration & Work Permits
Skilled foreign workers apply for the Temporary Residence Visa for work purposes through the National Migration Service (SERMIG).
12. Employer of Record (EOR) & PEO Capabilities
Tier 1 EOR providers maintain established direct Chilean SpA entities with full Previred electronic payroll integration.
13. Matched Verified Providers for Chile
Providers below are cross-referenced with EOR.one's global provider intelligence registry:
14. Related Global Expansion Services
15. Official Sources Reviewed
- Chile Ministry of Labour & Employment / Official Gazette ↗ Government / Regulatory Authority · Accessed 2026-09-01
- International Labour Organization (ILO) — Chile Country Profile ↗ International Organization · Accessed 2026-09-01
- The World Bank Group — Chile Economic & Labour Market Data ↗ Global Development Institution · Accessed 2026-09-01
- National Statistical Authority & Tax Administration of Chile ↗ Official Statistics / Tax Authority · Accessed 2026-09-01
16–18. Next Steps for Hiring in Chile
Choose the appropriate route for your hiring requirements in Chile: