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Employer of Record (EOR) in Chile

By partnering with an Employer of Record (EOR) provider like Native Teams, businesses can hire employees in Chile without setting up a local legal entity. We manage payroll, contracts, compliance, and administrative processes, so you can focus on growing your operations.

How does an EOR in Chile work?

An Employer of Record (EOR) enables companies to expand into Chile without the complex and time-consuming process of establishing a local legal entity. Instead of registering a company, opening local bank accounts, and managing tax filings independently, you partner with Native Teams as your legal employer in Chile.

We take full responsibility for drafting locally compliant employment contracts in Spanish, and managing the entire payroll cycle, including salary payments, income tax withholdings under the Impuesto Único de Segunda Categoría system. 

Who can use EOR services in Chile?

Companies of all sizes, from startups and scale-ups to multinational corporations, can use EOR services in Chile to enter the market quickly and hire local talent in full compliance with Chilean labour regulations. By partnering with an EOR, businesses can ensure adherence to tax and employment laws while focusing on strategic growth.

It’s particularly valuable for organisations testing the Chilean market, expanding operations across Latin America, or building international teams without committing to permanent legal infrastructure.

Features of Native Teams EOR services in Chile

Employment status
Employment status

Employees are legally employed through Native Teams’ local entity in Chile. We ensure that contracts fully comply with Chilean employment legislation and are issued within the required timeframe.

HR administration and documentation
HR administration and documentation

All employment records, contracts, and payroll documentation are securely stored and accessible through your Native Teams dashboard. Administrative processes are streamlined and fully compliant.

Global payroll
Global payroll

We manage payroll calculations, income tax withholdings, and statutory contributions. Employers receive a clear breakdown of employment costs while we ensure accurate and timely salary disbursement.

Benefits
Benefits

We ensure that employees receive all mandatory benefits under Chilean law, including social security, healthcare contributions, and pension-related obligations.

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What legal requirements exist for employment in Chile?

Company registration

Employers must register with the Registro Público de Comercio and the Servicio de Impuestos Internos (SII) before hiring. An EOR eliminates the need for this process.

Tax identification number (RUT)

Both employers and employees must obtain a RUT (Rol Único Tributario) issued by the SII.

Employment contract

Employment agreements must be in writing and drafted in Spanish. Contracts must be provided within 15 days of the employee starting work.

Income tax

Employers are responsible for withholding income tax under the Impuesto Único de Segunda Categoría system and submitting monthly payments between the 10th and 12th of each month.

Social security contributions

In Chile, most social security contributions are deducted from the employee’s salary and administered through private institutions regulated by the government.

Please note that Chilean labour laws may change, and requirements can vary depending on the role and employment conditions.

Why choose Native Teams as your Chile Employer of Record?

Why choose Native Teams as your Chile Employer of Record?

Native Teams is an all-in-one platform that integrates employment, work payments, and compliance across 95+ countries. We’re your boots-on-the-ground support, making sure your team is properly employed everywhere. Beyond the employer's needs, Native Teams offers dedicated employee support because a happy, informed workforce means stronger business outcomes. 

Our solutions have supported 3,000+ businesses in scaling globally, simplifying their expansion processes and reducing administrative workload by up to 70%.

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What you need to know?

What is an Employer of Record?

An Employer of Record (EOR) is a third-party organisation that legally employs workers on behalf of another company. The EOR manages payroll, taxes, benefits administration, and compliance with local labour laws, while the client company oversees daily operations and performance management.

What are the costs of using an Employer of Record in Chile?

EOR costs in Chile depend on the provider, number of employees, and scope of services required. Native Teams offers transparent pricing models tailored to business needs, which you can check out in detail on our pricing page.

What is the difference between PEO and EOR?

An EOR assumes full legal responsibility for employment, including payroll, tax compliance, and labour law adherence. A PEO operates under a co-employment model, sharing certain responsibilities with the client company.

EOR services are ideal for companies without a legal entity in Chile, while PEO services are typically suited for businesses that already operate locally.

Is using an Employer of Record in Chile legal?

Yes, using an EOR in Chile is fully legal. Many international companies rely on EOR providers to hire employees in Chile without establishing a subsidiary, ensuring full compliance with local employment regulations.

Why should I use EOR instead of opening my own company in Chile?

Establishing a legal entity in Chile involves company registration, tax authority approvals, banking setup, and ongoing administrative obligations.

An EOR enables you to:

  • Hire immediately
  • Avoid incorporation costs
  • Reduce legal exposure
  • Simplify compliance
  • Scale up or down without complex exit procedures

This provides flexibility while ensuring your business remains fully aligned with Chilean labour and tax laws.

How many people can I employ in Chile?

There is no statutory limit on the number of employees a company can hire in Chile, provided that labour laws and tax regulations are fully respected. The number of hires depends entirely on your business strategy and operational capacity.