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Hire and manage employees in Chile

As your Employer of Record (EOR) in Chile, we’d help you expand by hiring employees and running their payroll without establishing a local branch office or subsidiary.
Last updated:
November 10, 2025
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Table of Contents

General Overview

Chile is a dynamic economy in South America known for its strong mining, agriculture, and service sectors. Its open market policies and modern legal framework support both domestic and foreign investment, while Chilean labor laws provide clear guidelines to protect workers and ensure fair employment practices.

Employment Contracts

Types: Contracts may be either fixed-term or indefinite.

Conversion: A fixed-term contract automatically becomes indefinite if the employee continues working beyond the agreed period.

Form: Although not always mandatory in writing, it is recommended that contracts clearly outline job responsibilities, salary, and other conditions.

Probation Period

Duration: A probation period is typically established for up to 3 months.

Termination: During probation, either party may terminate the contract with shorter notice, as specified in the agreement.

Working Hours

Standard Hours: The normal workweek is generally limited to 45 hours.

Daily Hours: This usually averages around 9 hours per day.

Overtime: Overtime is permitted with prior agreement and must be compensated at a premium rate.

Vacation Days

Entitlement: Employees are entitled to a minimum of 15 working days of paid annual leave after one year of service (approximately three weeks).

Additional Leave: Employers or collective agreements may grant extra days based on seniority or working conditions.

Sick Leave

Certification: Employees must provide a medical certificate if absent due to illness.

Benefits: Sick leave is provided in accordance with Chilean social security rules, with payment typically based on a percentage of the employee’s salary (often up to 100% for work-related illness) during the approved period.

Wages and Salary Payment

Payment Frequency: Salaries are generally paid on a monthly basis, usually by bank transfer.

Minimum Wage: As of 2025:

  • For those above 18 but under 65 years, CLP500,000.00 to CLP510,500.00 per month; and.
  • For those under 18 and over 65 years, CLP372,989.00 to CLP382,875.00 per month.

Additional Increases: Wage adjustments may occur through collective bargaining or individual agreements.

Public Holidays

Chile observes several national public holidays each year (which are paid and separate from annual leave). Key holidays include:

  • January 1: New Year’s Day
  • Labor Day: May 1
  • Independence Day: September 18–19
  • All Saints’ Day: November 1
  • Christmas Day: December 25

Additional regional and religious holidays may also be observed.

Employer Taxes

Social Security: Employers contribute to social security schemes covering pensions, healthcare, and other benefits.

Additional Contributions: Specific rates may vary; employers typically fund accident insurance and other mandatory insurances as required by law.

Employee Taxes

Pension and Health: Employees typically contribute around 10% of their gross salary to their pension fund and a similar percentage to health insurance schemes.

Income Tax: Income is taxed on a progressive scale, with rates determined by total taxable income according to Chilean tax law.

Notice Period

Standard Requirement: The notice period is usually 30 days, unless otherwise specified in the employment contract or by collective agreements.

Variations: Specific notice periods may vary depending on the terms agreed upon by the employer and the employee.

Termination and Severance Pay

Termination: Contracts may be ended for cause or without cause, with proper notice as stipulated.

Severance: In cases of unjustified dismissal, employees are generally entitled to severance pay calculated as one month’s salary per year of service, subject to statutory limits.

Redundancy: Additional compensation may be provided in redundancy situations as defined by law or collective agreements.

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Frequently
Asked
Questions

What is International EOR and PEO?

International EOR (Employer of Record) and PEO (Professional Employer Organization) are services that enable businesses to compliantly hire, manage, and pay employees in foreign countries without the need for establishing a legal entity. EOR acts as the legal employer while PEO co-employs workers, handling administrative tasks such as payroll, taxes, and benefits.

Does Acvian handle time record submissions?

Acvian does not handle time record submissions directly. It is the client’s responsibility to track and submit employee work hours. However, Acvian can offer guidance and best practices to ensure efficient time tracking and compliance with local labor laws.

How can employees view their payroll details?

Employees can view their payroll details through the monthly payslips they receive and also via our Acvian platform. These payslips contain information on earnings, deductions, taxes, and net pay, giving employees a clear overview of their monthly payroll. Please note that in some countries, employers are restricted from viewing payslips due to data protection regulations, and only employees can share their payslips. For more details on these regulations, please contact our specialists.

How Acvian handles payroll disputes?

Acvian addresses payroll disputes promptly, working closely with both the client and the employee to investigate and resolve any issues.

Does Acvian require advanced monthly payments of salaries and service?

Yes, Acvian requires advanced monthly payments for salaries and service to ensure timely and accurate payroll processing.

Can Acvian provide consultations regarding a labor and tax legislation?

Yes, Acvian can provide consultations regarding labor and tax legislation. Our team of experts is well-versed in local regulations and can offer guidance to help your business maintain compliance, reduce risk, and navigate the complexities of international employment and taxation laws.

Which benefits does Acvian provide?

Acvian provides a diverse range of benefits, including but not limited to:

  • Health insurance
  • Car leasing
  • Gym allowance
  • Per diem compensation
  • Maternity leave

We can customize and offer many kinds of benefits requested by the client, ensuring that your employees receive the support and perks that align with your company culture and local regulations.

Can Acvian provide private health insurance?

Acvian can provide private health insurance options as part of its comprehensive employee benefits package.

What would the monthly/yearly costs for the employee be?

The monthly/yearly costs for an ‘average’ package vary depending on the specific plan and location. See our estimated price packages here. Acvian’s team can provide detailed cost breakdowns based on your requirements.

Can Acvian help with entity set up?

While Acvian doesn’t directly provide entity set-up services, we can introduce you to local lawyers who specialize in this area to assist you with your needs. See also, when it's better to set the entity or use the EOR.

Offboarding: how it is handled?

Offboarding is managed by Acvian in a structured and compliant manner. We coordinate with your business to ensure all necessary documentation, exit interviews, and final payments are completed. Acvian also ensures adherence to local labor laws and regulations, including providing any required notice periods and managing the termination process.

When does business need it?

Businesses typically need EOR and PEO services when they:

  • Expand into new international markets.
  • Hire remote employees in foreign countries.
  • Seek to streamline global workforce management.
  • Aim to ensure compliance with local labor laws and regulations.
  • Want to reduce the time and cost of establishing legal entities abroad.

Is Acvian compliant with GDPR?

Yes, Acvian is fully compliant with GDPR regulations. We collect and process personal data in accordance with the law, ensuring that data is used only for general, allowed purposes such as marketing and other legitimate business activities.

Do you provide employment agreements?

Yes, Acvian provides both permanent and fixed-term employment contracts, with the possibility of extension. After the second extension, the contract becomes indefinite.

How do employees view their payroll?

Employees can view their payroll details through the monthly payslips they receive and also via the Acvian platform.

Where can Acvian supply EOR services?

Acvian can supply EOR services in over 180 countries, encompassing almost all European nations, the United States, and Canada, providing extensive coverage to support your business’s global expansion and workforce management needs. See our coverage here.

How does payroll work under EOR?

Under EOR, Acvian manages the payroll process by:

  • Acting as the legal employer of your foreign workforce.
  • Handling salary calculations, deductions, and disbursements.
  • Ensuring compliance with local tax and labor laws.
  • Managing payroll taxes, social contributions, and benefits.
  • Providing timely and accurate payroll processing for your employees.

Explore the details here.

Can you provide support for expatriate EOR workers?

Yes, Acvian provides comprehensive support for expatriate EOR workers, including:

  • Visa and work permit assistance.
  • Relocation and housing support.
  • Local registration and compliance.
  • Payroll and tax management.
  • Coordination of benefits and insurance coverage.

Explore in details here.

What are the details of expats support?

Expats support from Acvian encompasses a range of services designed to facilitate a smooth transition for employees working abroad. Key aspects include:

  • Assistance with visa and work permit applications, renewals, and compliance.
  • Support for relocation, including housing, schooling, and local registration.
  • Guidance on local tax regulations and filings.
  • Coordination of locally compliant benefits and insurance coverage.
  • Ongoing support for any changes or issues that may arise during the expatriate assignment.

What happens after onboarding?

After onboarding, Acvian maintains an ongoing relationship with your business and employees, ensuring smooth payroll processing, managing tax and regulatory compliance, handling benefits administration, and providing support for any changes or issues that may arise in the employment lifecycle. This allows you to focus on your core business operations while Acvian manages your international workforce.

How many days will it take for our personnel to be onboarded?

The onboarding process typically takes between 2 to 4 weeks, depending on the country and complexity of the employee’s situation. However, Acvian strives to expedite this process, ensuring a smooth and efficient transition for your personnel. See our story of the urgent employment project.

Does Acvian provide in-country support for employee inquiries or assistance requests?

Yes, Acvian provides in-country or regional support for employee inquiries and assistance requests. We have dedicated managers in the countries where we support your employees, ensuring prompt and knowledgeable assistance tailored to local regulations and practices.

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