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Employee Leasing in Chile

As one of the countries with the most trade agreements in the world, Chile is a great destination for companies wishing to have easy access to over 4.3 billion consumers around the world. Additionally, the country’s stable economic and political context, along with its high level of transparency, make Chile an attractive option for business expansion.

Expanding into Chile with FMC Group through employee leasing lets companies significantly reduce their investment costs. Employee leasing also helps businesses be fully in line with local legal regulations, allowing them to focus their energy on business decisions that directly contribute to their growth.


  • Advantages of Employee Leasing in Chile
  • Employee Leasing Services Offered by FMC Group
  • Advantages of the Chilean Market
  • Recruitment in Chile
    • Minimum Wage and Payroll
    • Social Contributions and Taxes
    • Working Hours and Overtime
    • Vacation Days
    • Parental Leave and Sick leave
    • Notice Period
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Stephan Dorn FMC Group

Advantages of Employee Leasing in Chile

  • Expanding business activity into Chile through employee leasing offers clients unmatched ease and flexibility in their market entry.
  • Employee leasing allows clients to focus on business decisions and let FMC Group handle the administrative management of employees.
  • Recruiting local employees improves clients’ competitiveness by reducing the time needed for integration and adaptation.
  • Employee leasing lets clients benefit from the skilled Chilean labor force without setting up a local company.

Employee Leasing Services Offered by FMC Group

  • Searching for the best candidates that match the client’s needs;
  • Negotiating and signing employment contracts;
  • Paying the necessary taxes and social contributions;
  • Ensuring payroll accounting that matches international standards;
  • Paying all types of expenses and allowances;
  • Monitoring paid vacations;
  • Implementing private health insurance if requested;
  • Maintaining continuous communication with clients about their employees.

Management and Reporting Flow of Employee Leasing Services

Management and Reporting Flow Chart

Advantages of the Chilean Market

  • Chile is a very safe country for investment thanks to its high economic and political stability. The country has a low level of public debt, a healthy financial system, and solid institutions. Chile has an “A+” credit rating according to Standard & Poor’s and an “A-“ rating according to Fitch Ratings.
  • Chile has a consolidated position as one of Latin America’s most competitive economies. This is mainly due to its sustained economic growth and its openness to trade. Chile ranked first in the Latin America and Caribbean region and 33rd worldwide (out of 141 economies) in the World Economic Forum’s 2019 Global Competitiveness Index.
  • Chile is known for its high level of transparency in comparison to other countries in Latin America. The country ranked second in Latin America and 27th worldwide in the 2021 Corruption Perceptions Index. This low level of corruption is mainly attributed to the Chilean government’s sustained efforts to raise standards in administration, particularly in terms of finances.
  • Chile’s open economy and its active policy of trade agreements have allowed it to become a favored business destination for the trade opportunities it offers. The country has signed trade agreements with more than 60 countries, which allows businesses operating in Chile to reach more than 4.3 billion potential consumers around the world.
  • Chile’s Foreign Investment Promotion Agency offers detailed information about investment opportunities in the country.

Recruitment in Chile

Minimum Wage and Payroll

  • The monthly minimum wage in Chile is set at CLP 350,000 (EUR 375).
  • Salaries in Chile are usually paid monthly, on the last working day of each month.

Social Contributions and Taxes

Employer Contributions
Unemployment Insurance 2.40%
Disability and Survival Insurance 1.99%
Total 4.39%
Employee Contributions
Pension 10.00%
Health Insurance 7.00%
Unemployment Insurance 0.60%
Total 17.60%
Employee Income Tax
Up to 13.5 Monthly Tax Units* 0.00%
Between 13 and 30 Monthly Tax Units 4.00%
Between 30 and 50 Monthly Tax Units 8.00%
Between 50 and 70 Monthly Tax Units 13.50%
Between 70 and 90 Monthly Tax Units 23.00%
Between 90 and 120 Monthly Tax Units 30.40%
Between 120 and 310 Monthly Tax Units 35.00%
From 310 Monthly Tax Units 40.00%

* 1 Monthly Tax Unit = approximately CLP 51,500 (EUR 55).

Working Hours and Overtime

  • Legal working hours in Chile cannot exceed 45 hours per week and nine hours per day.
  • Overtime work is paid at a rate of 150% of the regular salary.
  • Overtime work cannot exceed two hours per day and 10 hours per week.

Vacation Days

  • Employees in Chile have the right to 15 days of paid vacation per year after completing one year of service.
  • Chile commemorates 16 public holidays:
    • New Year’s Day: January 1st;
    • Good Friday: Between March and April (moveable);
    • Holy Saturday: Between March and April (moveable);
    • Labor Day: May 1st;
    • Navy Day: May 21st;
    • National Day of Indigenous People: June 24th;
    • Feast of Saints Peter and Paul: June 29th;
    • Our Lady of Mount Carmel: July 16th;
    • Assumption of Mary: August 15th;
    • National Day: September 18th;
    • Army Day: September 19th;
    • Columbus Day: October 10th;
    • Reformation Day: October 31st;
    • All Saints’ Day: November 1st;
    • Immaculate Conception Day: December 8th;
    • Christmas Day: December 25th.

Parental Leave and Sick Leave

  • Female employees in Chile are entitled to 30 weeks of paid maternity leave, including six weeks before delivery and 24 weeks after. New mothers are paid fully during maternity leave by health insurance.
  • Fathers are entitled to five days of paid paternity leave after a new child is born. After the seventh week from birth, new mothers can transfer some or all of their maternity leave to the father.
  • Female employees can take 10 days of paid parental leave per year to care for a child under the age of 18. However, they must make up the time taken off at a later date.
  • Employees in Chile are entitled to sick leave if they can provide a medical certificate within two days from the beginning of the leave. The first three days of sick leave are unpaid. From the fourth day, the employee receives payment from health insurance. Sick pay rarely equals the full salary. It is usually capped.

Notice Period

  • Chilean labor law sets the legal notice period in the country at one month.

Further Useful Information

Disclaimer: Although we carefully researched and compiled the above information, we do not give any guarantee with respect to the actuality, correctness, and completeness.