Country Payroll Guide Chile

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Key Facts

Capital
Santiago
Date format
dd/mm/yyyy
Currency
Chilean Peso (CLP)
VAT
the standard rate is 19%

Contributions

Employers

Unemployment
Unemployment - 2.4%
Disability and Survival Insurance (SIS)
Disability and Survival Insurance (SIS) - 1.99%
Total Employment Cost
Total Employment Cost - 4.39%

Employees

Pension
Pension - 10%
Unemployment
Unemployment - 0.6%
Health Plan
Health Plan - 7%
Total Employee Cost
Total Employee Cost - 17.60%

Minimum Wage

Minimum Wage
Minimum wage in Chile is 326500 CLP per month.

Payroll

Payroll Cycle
Monthly
13th Salary

No statutory laws requiring a 13th salary.

Income Tax

Employee Income Tax (1)
0 – 13.5 Monthly Tax Units - 0%
Employee Income Tax (2)
13.5 - 30 Monthly Tax Units - 4%
Employee Income Tax (3)
30 – 50 Monthly Tax Units - 8%
Employee Income Tax (4)
50 – 70 Monthly Tax Units - 13.5%
Employee Income Tax (5)
70 – 90 Monthly Tax Units - 23%
Employee Income Tax (6)
90 – 120 Monthly Tax Units - 30.4%
Employee Income Tax (7)
120 – 350 Monthly Tax Units - 35%

Working Hours

General Working Hours

45 hours per week.

Overtime

This is paid at 1.5x the normal wage.

Leave

Paid Time Off

15 days a year.

Public Holidays

16 days.

Sick Days

For the first three days of sick leave, the employee is not entitled to pay From the fourth day on however, employees are entitled to sick pay.

Maternity Leave

30 weeks (paid). 6 weeks prior to the birth and 24 weeks after.

Paternity Leave

5 days (paid). There is also an option for the mother to transfer days she will not use to the father, once seven weeks after the birth has passed.

Parental Leave

Female employees – 10 days of parental leave for a child under the age of 18. This is paid at the time of the leave, but the time must be made up.

Other Leave

Bereavement – 3 days ( paid) for the death of an immediate family member.

Termination

Termination Process

Valid reasons for terminating an employees contract include mutual agreement, resignation, or expiration of a contract breach of contract (employer must be able to provide proof). Company needs or reorganization are the most common reasons for the dismissal of an employee.

Notice Period

1 month.

Severance Pay

Employees who have a minimum of 1 year employment are entitled to severance pay. An employee is entitled to one month’s salary if they have worked 1-11 years. The employee will also accumulate another month of severance pay after a year of employment if they have also worked a minimum of half of the following year.

Probation Period

12 months.

Visa

Employment Visa

All individuals who are not residents and wish to work in Chile must acquire one of two work visas: Visa Subject to a Contract OR Working Holiday Visa.