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Hiring in Chile through an EOR (2026)
Here's what you need to know before you hire in Chile: what it really costs an employer, the employment laws that shape the contract, and how an Employer of Record lets you hire compliantly without opening a local entity. Every figure below is sourced and dated.
5.8%Employer cost on top
CLP 539,000Minimum wage / mo
15 daysPaid annual leave
Days, not monthsTime to hire via EOR
Last updated: July 1, 2026
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Chile at a glance
The statutory facts that drive a hire in Chile. Each row shows where the figure comes from and how current it is, so you can trust the number and check it yourself.
Pay & working time
| Minimum wageper month | CLP 539,000Current | National government · 2026 |
| Average wageper year | 38,130Dated | OECD · 2023 |
| Statutory work week | 42 hours/weekCurrent | Statutory working time (national labour law) · 2026 |
| 13th-month salary | mandatoryCurrent | National government · 2026 |
Employer cost & tax
| Employer social securityof gross salary | 5.8%Current | National government · 2026 |
| Employee social securitywithheld from pay | 7%Aging | OECD · 2025 |
| Total tax wedge | 7.5%Aging | OECD · 2025 |
| Corporate tax rate | 27%Aging | OECD · 2025 |
Termination
| Notice period | 4.3 weeksCurrent | World Bank Employing Workers / B-READY · 2019 |
| Severance pay | 23.1 weeksCurrent | World Bank Employing Workers / B-READY · 2019 |
| Employment protectionOECD EPL, scale 0–6 | 2.3Dated | OECD · 2019 |
Leave & time off
| Paid annual leave | 15 daysCurrent | National government · 2026 |
| Public holidays | 16 daysCurrent | Nager.Date (open public-holiday dataset) · 2026 |
| Maternity leave | 18 weeksDated | OECD Family Database · 2024 |
| Paternity leave | 1 weekCurrent | World Bank Women, Business and the Law · 2026 |
| Parental leave | 12 weeksDated | OECD Family Database · 2024 |
Labour market
| Retirement age | 65Dated | OECD Pensions at a Glance · 2024 |
| Unemployment rate | 8.5%Aging | OECD · 2025 |
| GDP per capita | $17,995Aging | World Bank Open Data · 2025 |
| Union density | 16%Dated | OECD/AIAS ICTWSS · 2023 |
| Collective bargaining coverage | 19.3%Dated | OECD/AIAS ICTWSS · 2023 |
Each row shows the year of the most recent citable source for that figure. Where a year looks old, that is the newest comprehensive source available, and we keep the sourced figure rather than substitute an unsourced newer one. Statutes may have changed since.
What it costs to hire in Chile
Salary is only part of the bill. On top of gross pay you owe employer social security and statutory contributions. Here's what an example salary of $38,000 a year actually costs you as the employer.
| Gross annual salary | $38,000 |
| Employer contributions≈ 5.8% of gross | + $2,204 |
| Total employment cost | $40,204 |
Your EOR handles the filings
Illustrative, based on the employer social-security rate above. An EOR adds its own service fee on top of this total and runs the income-tax withholding and statutory filings, which are withheld from the employee's pay, not paid by you.
Income tax in Chile
The average effective income-tax rate is about . This is withheld from the employee's salary; an EOR runs the withholding and filing.
Employment-law essentials
The rules an EOR enforces in your contracts, and the ones most likely to trip you up if you tried to hire in Chile on your own.
Working time
Statutory work week42 hours/week
Pay & 13th salary
Minimum wageCLP 539,000
13th-month salarymandatory
Leave
Paid annual leave15 days
Public holidays16 days
Maternity leave18 weeks
Paternity leave1 week
Termination
Notice period4.3 weeks
Severance pay23.1 weeks
Statutory minimums shown. Collective agreements or contracts can be more generous; an EOR applies whichever is correct for the role.
EOR vs. opening your own entity in Chile
Use an EOR when…
You're hiring one to a handful of people in Chile.
You want someone working in weeks, not months.
You'd rather not own local payroll, tax and compliance.
You're testing the market before committing.
Open your own entity when…
You're scaling to a large local team long-term.
Per-employee EOR fees outweigh the cost of an entity.
You need full control of local employment and IP.
Choosing an EOR for Chile
Providers with strong Chile coverage onboard faster and carry less risk. A shortlist to start from:
EORRead Hire with Columbus review Visit website
EORPayoneer Workforce Management
From$199 / mo
EORRemoFirst
From$199 / mo
EORRemote
From$699 / mo
EORSignature Back Office Solutions
FromContact for pricing
EORSwapp Agency
FromContact for pricing
Common questions about hiring in Chile
Common questions about hiring in Chile through an EOR.
Do I need a legal entity to hire someone in Chile? +
No. An Employer of Record (EOR) already has a legal entity in Chile and employs the person on your behalf, so you can hire compliantly without opening your own entity. You manage the day-to-day work; the EOR handles the local contract, payroll, taxes and statutory benefits.
How much does it cost to employ someone in Chile? +
On top of gross salary, employers in Chile contribute roughly 5.8% in social security and statutory costs. An EOR adds its own service fee on top of that total employment cost.
What is the minimum wage in Chile? +
The statutory minimum wage in Chile is CLP 539,000. Pay below this is not permitted, and an EOR will hold contracts to at least this floor.
How hard is it to terminate an employee in Chile? +
Ending employment in Chile generally requires a notice period of around 4.3 weeks and severance of about 23.1 weeks, subject to the reason for termination and the employee's tenure. An EOR runs the offboarding in line with local law to limit your risk.
How much paid leave do employees get in Chile? +
Employees in Chile are entitled to 15 days of paid annual leave, in addition to public holidays. Statutory leave is one of the entitlements your EOR administers automatically.
About the author
Robbin is the co-founder of EOR Overview, an independent research site for Employer of Record services. He has been in the international hiring space for over a decade.
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