Minimum Wage
General
The monthly minimum wage in Chile is 350,000 CLP for employees over the age of 18 and under 65. For employees under the age of 18, and over 65, the monthly minimum wage is 261,092 CLP.
Payroll
Payroll Cycle
Monthly
13th Salary
There are no provisions in the law regarding 13th salaries.
Working Hours
General
A full workweek in Chile is 45 hours. The employer has the right to extend the day by no more than 2 hours a day, or 10 hours a week. The Chilean Labour Code recommends daily rest periods, a midday meal (as part of a break for at least half an hour), and a weekly rest day on Sundays and national holidays.
Employees delivering services providing technical support, working in public shops or within the entertainment business, and therefore, required to work on Sundays and national holidays, areprovided with rest days on different days.
Overtime
Overtime is paid at a rate of 150% of the regular pay.
Working Week
Monday-Friday/Monday-Saturday
Leave
Paid Time Off
Employees who have been employed for at least 1 year are entitled to 15 working days paid leave.
Public Holidays
There are 16 public holidays in Chile.
Sick Days
In Chile, employees are entitled to sick leave if they can provide a medical certificate within 2 days from the beginning of the leave. The employer must then forward the certificate to the health insurance within 3 days.
- For the first 3 days of sick leave, the employee is not entitled to pay
- From the 4th day on, employees are entitled to sick pay, however, it may be subject to a cap.
Maternity Leave
In Chile, the woman is entitled to 18 weeks of maternity leave, six weeks of paid prenatal leave, and twelve weeks of paid postnatal leave. Following completion of the twelve-week postnatal leave, new mothers have the right to request a further twelve weeks’ leave.
During the pregnancy, the woman is not required to participate in activities that would endanger her health (i.e. heavy lifting). If this is a requirement of the job, the employer must reassign her to a different position during her pregnancy without pay reduction. Also during the entire pregnancy and up to eighteen months after the birth, the company may only terminate the employment contract of the mother with the authorization of a labor court.
Maternity and paternity leave are paid for by the government or the company health insurance provider.
Paternity Leave
Fathers are entitled to 5 days of paid paternity leave.
After the 7th week of birth, the mother can opt to transfer some or all of her maternity leave to the father.
Parental Leave
Female employees are entitled to 10 days of parental leave for a child under the age of 18. While the employee is entitled to be paid, they must make up the time taken off at a later date.
Other Leave
Bereavement Leave - If a member of the employee’s immediate family passes away, the employee is entitled to 3 days of paid leave.
Termination
Termination Process
In order to terminate an employee, the cause must first be decided. By law, the following reasons are valid reasons for termination:
- Mutual agreement, resignation, or expiration of a contract
- Breach of contract (employer must be able to provide proof)
- Company needs or reorganization (the most common reason for the dismissal of an employee)
The employer must prepare a letter for the employee stating the cause for termination as well as the effective date and it must be signed in person by the employee or sent by certified mail to their home address. In addition, the same letter must be filed with the Chilean Labor Ministry. It is common that the employee is notified on the last day or work.
After the termination letter is given, the employer must prepare a severance agreement which must include the cause for termination as well as the amount that will be paid out to the employee. The severance agreement must be signed within 10 days of the termination.
In the case of a mutual agreement, both parties must sign a document acknowledging that both parties have agreed that the employment contract is terminated. A severance agreement must also be signed within the first 1-2 weeks following the termination date.
Notice Period
The notice period is 1 month by law. It is common that the notice period is waived and payment is made in lieu.
Severance Pay
If the employee has completed at least 1 year of employment, they are entitled to severance pay. For every year of service up to 11 years, the employee is entitled to 1 month’s salary. In addition, after one year of employment, the employee accumulates an additional month of severance pay if they have worked for at least half of the following year.
Probation Period
12 months
Common Benefits
General
Home office allowance, private health insurance/allowance, and depending on the position/industry a
meals allowance (Colación).
VISA
VISA
Anyone who comes to Chile with the intention to work, even if they don’t require a visa to enter, must receive a work visa.
There are two kinds of work visas available to foreigners:
Visa Subject to a Contract – for candidates who have secured an employment contract prior to arriving in Chile. It is valid for 2 years and can be renewed for an additional 2 years. After that, a candidate needs to a apply for permanent resident status, which would allow the candidate to continue to work in Chile.
The process requires about 20-30 days to complete. The application should be filed 30-60 days before the expected arrival.
To get the permit, the hiring company must be incorporated in Chile, demonstrate that the hiring will help Chile, and have their VAT and employee insurance paid for the past 3 months.
Working Holiday Visa
People from Colombia, Mexico, Peru, Germany, Canada, Australia, Czech Republic, and New Zealand who are between the ages of 18 and 35 can apply for a 1-year visa that allows them to work in Chile. The visa cannot be renewed.
VAT
General
19% standard rate.
