EOR Service in Chile

Hire, Onboard and Pay Employees in Chile Quickly and Efficiently

Hiring in Chile at a glance

CURRENCY
Chilean Peso (CLP)
working hours
45 hours per week
public/bank holidays
16 Days
capital
Santiago
language
Spanish
date format
DD/MM/YYYY
remote workers
1.2M
tax year
Jan 1st to Dec 31st
minimum hourly salary
No minimum wage
CURRENCY
Chilean Peso (CLP)
working hours
45 hours per week
public/bank holidays
16 Days
capital
Santiago
language
Spanish
date format
DD/MM/YYYY
tax year
Jan 1st to Dec 31st
payroll frequency
Monthly
GDP
$317.06B (2021 estimate)

Employer of Record in Chile

Chile presents a compelling opportunity for global organizations seeking high-impact talent at low hiring costs. In Chile, an EOR can be especially helpful due to the complex labor laws and regulations. By partnering with an EOR, you can ensure that your business is in compliance with all local laws and regulations while also providing your employees with the support they need. 

Why use Chile EOR?

Chile boasts a skilled and diverse workforce, cost advantages, a strong work ethic, advanced infrastructure, and a supportive business environment. With its highly educated population and proficiency in English, Chile offers a pool of talented professionals. The competitive labor costs and favorable government policies further enhance its attractiveness as a business destination, providing an optimal environment for companies to thrive and expand.

However, many experienced employers find hiring in Chile amid its employment laws difficult. Chile’s labor laws have some unique characteristics making hiring in the country different from other markets. For example, maternity leave policies in Chile are very generous granting female employees 4 and half months of paid leave. Severance laws are employee-friendly, and employers must be wary during terminations. Additionally, employees in Chile are entitled by law to form and join trade unions. 

Hiring and navigating these laws can be grueling for foreign employers.  Through the Gloroots' Chile EOR and PEO platform, you can tap into the remarkable talent pool in Chile and effectively grow your team.

EOR Costs in Chile

The cost of Chile EOR/PEO services in Chile may differ based on various factors, such as the number of employees, the extent of services needed, and the intricacy of the project. The pricing structure for Chile EOR/PEO services usually involves a monthly fee per employee or a percentage of the employee's salary. Extra charges may apply for additional services or customization.


Key Metrics For Foreign Employers 

For many employers, Chile is a gateway to the South American market. The country's entrepreneurial atmosphere, particularly in the technology and innovation sectors, fosters creativity and innovation, making it an attractive location for entrepreneurs and investors. 

The table below depicts key indicators from the Global Talent Competitiveness Report for employers wishing to hire from Chile.

Factors Global Ranking Interpretation
Rule of law

Labour-employer cooperation

Reading Maths, and Science

University Ranking

Labour productivity per employee

Ease of finding skilled employees

Workforce with tertiary education

Digital Skills
24

56

45

30

46

14

62

9
Indicates effectiveness of law enforcement

Indicates positive labor-employee relationships

Indicates average scores in OECD's survey of 15-year-old students

Indicates average QS rankings

Indicates total output by the total labor input used to produce that output

Indicates findability of skilled talent

Indicates % of the workforce with PG degrees

Indicates the prevalence of advanced digital skills in the population

Source: The Global Talent Competitiveness Index 2022

Through the Gloroots’ Recrew platform, you can discover amazing talent in Chile.

Why work in Chile ?

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Grow your team in Chile

Growing a team means hiring the right employees at the right time and for the appropriate positions. Employers in Chile must have a local legal organization and use local resources to handle compliance, payroll, tax, and benefits management. The complexity of employment regulations in Chile makes compliance with employment laws demanding.

With Gloroots’s global Employer of Record (EoR) service, you can let Gloroots do the heavy lifting of payroll, tax, benefits, and compliance and concentrate on what matters to you most: your employees and company growth.

Risks of misclassification

Misclassification refers to the improper classification of workers, particularly in terms of their employment status. 

Utilizing a PEO/EOR in Chile helps mitigate the risks associated with misclassification by ensuring compliance with labor laws, proper employee classification, accurate payroll processing, and access to comprehensive benefits. This enables businesses to focus on their core operations while entrusting employment-related responsibilities to experienced professionals.

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Avoid hefty penalties with Gloroots.

Use our free employee misclassification risk calculator to estimate your risk level.

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Employing in Chile

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Tax

Tax and Social Security contribution

Employers Tax Rate
Corporate Tax 27%
Value Added Tax (VAT) 19%

Employees Tax Rate
Individual Income Tax 0% - 40%

Social security

Employers Contribution Rate
Unemployment Insurance 2.4% (3% for fixed-term contracts)
Life and Disability Insurance (SIS) 1.54%
Occupational Accident Insurance 0.90% (plus risk-related premium of up to 3.4%)

Employers Contribution Rate
Health Insurance 7%
Pension Fund Contribution (AFP) 10%
Unemployment Insurance (not applicable to fixed-term contracts) 0.6%

Note: The contribution rates for social security may vary depending on specific circumstances such as employment contract type.

Separation

Employment Termination and Severance

Employment Termination

Employees may face termination for valid reasons such as dishonesty, negligence, fraud, or other work-related offenses. While managerial staff can be dismissed at the employer's discretion, the law requires the provision of a severance package.

Notification Period

Employers are obliged to give employees a minimum notice period of 30 days prior to termination.

Severance pay

In cases of business-related dismissals, such as redundancy, employees have the right to receive a severance package equal to one month's wages. 

However, employees found guilty of breaching their contract or committing serious offenses are not entitled to severance pay.

Start Hiring in Chile today

When hiring globally, ensuring compliance comes with its own set of battles. Employers must ensure all hiring and onboarding activities adhere to employment laws, payroll procedures, DE&I compliance, GDPR and similar data protection, etc. If you think it is hard to set up local entities and start hiring, keeping up with a dynamic compliance landscape is far harder. 

Gloroots helps you minimize all these efforts by providing a single window to manage all these tasks. Our in-house experts fully shield you from cross-border employment and payroll compliance risks. We do this by helping you with generating employment contracts, on-time payments, compliant benefits, while you focus only on screening talent. 

Our promise is a stress-free global employment experience for both you and your employee.

Contact our experts today to kickstart your global hiring campaign.

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Experience Seamless Hiring in Chile ?

Let us take care of all your employment needs. We guarantee easy onboarding & compliant workforce management in Chile .

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