What should I know about hiring in Chile?
If you are planning to hire in Chile, it’s important to understand how employment relationships are regulated under the country’s Labour Code. Employment contracts must be agreed upon and signed by both the employer and the employee, and they must clearly outline job duties, salary, benefits, working hours, and contract duration.
Chile has a regulated minimum wage, which employers must comply with, along with strict payroll, tax, and social security obligations. Employers are required to withhold income tax and make contributions to pension funds, health insurance, and unemployment insurance.
Chile offers access to a skilled workforce and a stable business environment, but employment laws are detailed and strictly enforced. Before hiring, companies should familiarise themselves with local compliance requirements, contract registration rules, and employee protections to avoid penalties.
Why is Chile a good choice for finding remote employees?
Chile is one of the most developed economies in Latin America, making it an attractive destination for hiring remote talent.
The country has a highly educated workforce, particularly in sectors like technology, finance, and engineering. Many professionals are experienced in working with international companies and are comfortable operating in remote environments.
Chile also benefits from strong infrastructure, reliable internet connectivity, and a growing remote work culture. Time zone alignment with North America makes collaboration easier for global teams.
Additionally, Chile’s legal framework supports flexible working arrangements, including remote work, while ensuring employees receive full labour protections. Combined with government support for business and foreign investment, Chile is a strong option for building distributed teams.
How can Native Teams help you hire in Chile
As global hiring becomes more complex, managing employment, payroll, and compliance in Chile can be time-consuming and risky without local expertise.
With Native Teams’ Employer of Record (EOR) services, you can hire employees in Chile without setting up a local entity. We handle employment contracts, payroll processing, tax compliance, and benefits administration on your behalf.
We provide guidance through Chile’s legal system, ensure compliance with local labour laws, and reduce administrative burden so you can focus on growing your business.
Hire your first Chilean employee with Native Teams.
Legal requirements for hiring in Chile
Here are the most important legal aspects to consider when hiring employees in Chile:
Legal framework
Employment in Chile is governed by the Labour Code (Código del Trabajo), which defines the rights and obligations of both employers and employees.
The law recognises an employment relationship when an individual provides services under subordination and receives remuneration. Even if no written contract exists, the relationship may still be legally recognised based on actual working conditions.
Employers are required to register employment contracts with the Labour Authority within a specific timeframe and comply with all statutory employment regulations.
Types of employment contracts
Chilean law recognises several types of employment contracts.
Individual employment contracts are the most common and are signed directly between the employer and employee. These can be indefinite (permanent), fixed-term, or project-based contracts.
Collective agreements are negotiated between employers and employee unions and define working conditions, wages, and benefits for a group of employees.
Special contracts also exist for specific industries or roles, such as temporary or outsourced workers.
Content of an employment contract
Employment contracts in Chile must be in writing and include key details such as:
- Identification of both parties
- Job role and responsibilities
- Workplace location
- Salary and payment terms
- Working hours and schedule
- Contract duration
- Additional benefits or allowances
Employers must formalise the contract within 15 days of the employee starting work (or within 5 days for short-term contracts).
Download a free employment contract for Chile through Native Teams.
Oral, written or electronic employment contracts
Although employment relationships can legally exist without a written contract, Chilean law requires employers to formalise contracts in writing.
Electronic contracts are also valid, provided they meet legal requirements and include proper electronic signatures. Employers must store and register contracts with the Labour Authority. Failure to document contracts properly may result in penalties and legal assumptions in favour of the employee.
Working hours
Chile is gradually reducing its working week under the 40-hour law. As of 2026, the maximum working week is 42 hours, with a plan to reduce it to 40 hours by 2028. Working hours can be distributed across 4 to 6 days, with a maximum of 10 hours per day. Overtime is allowed only for exceptional cases and must be agreed in writing. It is typically paid at a 50% premium over the regular hourly rate.
Night work
Chilean law does not impose a universal night shift premium, but it includes protections for employees working during night hours. Night work restrictions apply especially to minors and pregnant employees. Additional compensation for night work is usually agreed through contracts or collective agreements, unless it qualifies as overtime.
Breaks and types of leaves
Employees in Chile are entitled to rest breaks and leave benefits regulated by the Labour Code. A minimum 30-minute unpaid meal break is required during the workday. Employees must also receive at least 12 hours of rest between shifts and one full day of rest per week, typically Sunday. Additional leave types include bereavement leave, marriage leave, and other statutory absences.
Annual leave
Employees are entitled to at least 15 working days of paid annual leave after completing one year of service. Leave must generally be taken continuously, although part of it can be split by agreement. Unused leave can be carried forward under certain conditions or paid out upon termination.
Salary
Salaries in Chile must be paid in Chilean pesos unless otherwise agreed. Employers must provide detailed payslips outlining earnings, deductions, and contributions.
The minimum wage in Chile as of 2026 is CLP 539,000 per month for most workers. Employers must also comply with mandatory profit-sharing rules or provide an alternative bonus structure.
To calculate the salary and taxes in Chile, click here.
Sick leave
Employees are entitled to paid sick leave with a valid medical certificate. Sick leave is funded by the health insurance system, not the employer. Payment conditions depend on the duration of absence, with full pay typically provided for longer sick leaves. Employees are protected from dismissal while on certified sick leave.
Parental leave
Chile provides strong parental leave benefits supported by the social security system. After maternity leave, employees can take additional parental leave, either as full-time leave or part-time arrangements. Part of this leave can be transferred to the other parent.
Paternity and maternity leave
Maternity leave lasts 18 weeks (6 weeks before birth and 12 weeks after), paid through social security. Fathers are entitled to 5 days of paid paternity leave, which can be taken within the first month after birth.
Methods of employment termination
Employment can be terminated in Chile through several methods, including mutual agreement, resignation, contract expiration, or dismissal due to business needs or misconduct. Employers must follow strict legal procedures and provide written notice with clear reasons for termination.
Ordinary dismissal by employer
Employers may terminate employment due to business needs, such as restructuring or economic reasons. Employees with at least one year of service are entitled to severance pay and notice, unless dismissed for serious misconduct.
Notice period and challenging the dismissal
Employers must provide 30 days’ notice or compensation in lieu of notice. Employees have the right to challenge unfair dismissals in labour courts. If the dismissal is deemed unjustified, employers may be required to pay additional compensation.
Rights and obligations of unemployed individuals
Chile provides unemployment protection through a system based on individual savings accounts and a solidarity fund. Employees can access funds accumulated during employment and may receive additional support if they meet eligibility criteria.
Severance pay
Severance pay is mandatory in certain cases, particularly when employees are dismissed due to business needs. Employees are entitled to one month’s salary per year of service, capped at 11 months. Additional compensation may apply in cases of unfair dismissal.
Probationary period
Chilean labour law generally does not recognise probationary periods. Instead, employers often use fixed-term contracts to evaluate employees before offering permanent positions.
Intellectual property rights
Intellectual property created during employment typically belongs to the employer if it is related to the employee’s job duties. However, creations outside the scope of employment may remain the property of the employee unless otherwise agreed.
Employee data privacy
Employers must handle employee data in accordance with Chile’s data protection laws. Personal data can only be collected and used for legitimate employment purposes and must be kept secure and confidential.
Prohibition of competition
Employees are generally restricted from engaging in competing activities during employment. Post-employment non-compete clauses are enforceable only if they are reasonable in scope, duration, and geography, and may require compensation.
Remote working policy
Remote work is legally recognised in Chile and must be agreed upon in the employment contract. Employers must register remote work arrangements and ensure employees have the necessary tools and working conditions.
Responsibilities within a remote work arrangement
Remote employees are entitled to the same rights as on-site workers, including salary, benefits, and social security. Employers must provide equipment, ensure health and safety compliance, and respect employees’ right to disconnect.
What are the advantages of hiring employees from Chile vs other countries?
Hiring employees from Chile provides access to a highly skilled, educated workforce with strong international experience.
Compared to North America or Western Europe, labour costs can be more competitive while maintaining high-quality output. Chile’s stable economy, strong legal system, and business-friendly environment also make it a reliable hiring destination.
Additionally, Chile’s time zone alignment with the US and growing remote work ecosystem make it ideal for global teams.
Why use Native Teams for hiring in Chile?
Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:
- No paperwork: We will handle all the necessary paperwork for you.
- Save on taxes: We help you handle your taxes.
- No company set up: You can expand your business using our company entitles.
- Online onboarding: We’re here to ensure your onboarding process is trouble-free.
- No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
- Increase your profit: We assist you in growing your business and maximizing your profits.
- Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
- Local support: We can assist you in understanding and complying with the relevant local laws.
