The Republic of Chile is a country in western South America. It shares land borders with Peru, Bolivia, Argentina, and the Drake Passage in the far south. It is a long, narrow country with an average width of about 177 km. Chile is a high-income developing country that ranks 43rd on the Human Development Index. It is one of South America’s most economically and socially stable countries, ranking first in Latin America in competitiveness, per capita income, globalization, peace, and economic freedom.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Chile.
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The Republic of Chile is a country in western South America. It shares land borders with Peru, Bolivia, Argentina, and the Drake Passage in the far south. It is a long, narrow country with an average width of about 177 km. Chile is a high-income developing country that ranks 43rd on the Human Development Index. It is one of South America’s most economically and socially stable countries, ranking first in Latin America in competitiveness, per capita income, globalization, peace, and economic freedom.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Chile.
The holidays mentioned below are valid for the year 2025.
| January 1 | New Year's Day | |
| April 18 | Good Friday | Movable |
| April 19 | Holy Saturday | Movable |
| May 1 | Labor Day | |
| May 21 | Naval Glories Day | |
| June 20 | National Day of the Indigenous Peoples in Chile | |
| June 29 | The Feast of Saints Peter and Paul | |
| July 16 | The Feast of Our Lady of Mount Carmel | |
| August 15 | Assumption of Mary | |
| September 18 | Independence Day | |
| September 19 | The Day of the Glories of the Army | |
| October 13 | Day of the Races | |
| October 31 | National Day of the Evangelical and Protestant Churches | |
| November 1 | All Saints' Day | |
| December 8 | The Feast of the Immaculate Conception | |
| December 25 | Christmas Day |
The approximate time for sharing the contract with an employee in Chile is 14 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.
NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.
All employees are covered by the Social Security system. Employees are required by law to contribute to a mandatory insurance program that covers old age, disability, and survivorship. Foreign employees are generally required to pay social security contributions, though certain exceptions may apply.
An overview of the contributions towards Social Security is presented below:
|
Benefits |
Employer Contributions |
Employee Contributions |
Cap |
|---|---|---|---|
|
Pension Fund System |
– |
10% |
|
|
Health Insurance |
– |
7% |
|
|
Unemployment Insurance |
2.4% |
0.6%* |
131.9 UF |
|
Mutual ACHS (Occupational Accidents |
0.93% |
– |
87.8 UF* |
|
Disability Insurance (SIS) |
1.38% |
The maximum ordinary working hours per week is 45 hours, divided into five or six days. Standard working hours are usually 9 hours per day, from Monday to Friday.
Work contracts with a part-time working day may be agreed upon, taking into account those with a working day that does not exceed two-thirds of an ordinary working day.
Extraordinary working hours are those that exceed the legal maximum or, if less, the contractually agreed maximum. Overtime is limited to two hours per day or 10 hours per week.
Overtime is paid at a 50% surcharge on the regular day’s salary and must be settled and paid in conjunction with the regular remuneration for the respective period.
Chilean companies typically use fixed-term agreements as a probationary period, which often lasts 12 months.
An employer must give at least 30 days’ notice before terminating an employee. The notice period is frequently waived, and payment is made in lieu. The payment cannot exceed 90 inflation-indexed units (UFs). During this time, either party may terminate the employment contract with three days’ notice, paying the employer for the time served.
The maximum ordinary working hours per week is 45 hours, divided into five or six days. Standard working hours are usually 9 hours per day, from Monday to Friday.
Work contracts with a part-time working day may be agreed upon, taking into account those with a working day that does not exceed two-thirds of an ordinary working day.
Extraordinary working hours are those that exceed the legal maximum or, if less, the contractually agreed maximum. Overtime is limited to two hours per day or 10 hours per week.
Overtime is paid at a 50% surcharge on the regular day’s salary and must be settled and paid in conjunction with the regular remuneration for the respective period.
Chilean companies typically use fixed-term agreements as a probationary period, which often lasts 12 months.
An employer must give at least 30 days’ notice before terminating an employee. The notice period is frequently waived, and payment is made in lieu. The payment cannot exceed 90 inflation-indexed units (UFs). During this time, either party may terminate the employment contract with three days’ notice, paying the employer for the time served.
All employees are covered by the Social Security system. Employees are required by law to contribute to a mandatory insurance program that covers old age, disability, and survivorship. Foreign employees are generally required to pay social security contributions, though certain exceptions may apply.
An overview of the contributions towards Social Security is presented below:
|
Benefits |
Employer Contributions |
Employee Contributions |
Cap |
|---|---|---|---|
|
Pension Fund System |
– |
10% |
|
|
Health Insurance |
– |
7% |
|
|
Unemployment Insurance |
2.4% |
0.6%* |
131.9 UF |
|
Mutual ACHS (Occupational Accidents |
0.93% |
– |
87.8 UF* |
|
Disability Insurance (SIS) |
1.38% |
