🇨🇱 Chile · Employment & Labor
Hiring rules, employment contracts, payroll, social insurance, and EOR options.
Quick answer
Chilean employment under the Labour Code sets a national minimum wage, 15 working days' paid vacation, and a profit-based bonus (gratificación). Pensions go to a private AFP and health to Fonasa or an Isapre; dismissal for certain causes pays severance of a month per year (capped), and the Labour Directorate and labour courts handle disputes.
Employment is governed by the Labour Code (Código del Trabajo), overseen by the Labour Directorate (Dirección del Trabajo); a statutory minimum wage applies.
- Written employment contracts are mandatory.
- A statutory national minimum wage applies and is updated periodically.
- Employers contribute to pensions, health and unemployment insurance.
Step-by-step
- 1
Get a written contract
You must have a written contract within the legal deadline, stating role, pay, hours and duration.
- 2
Know your pay and hours rights
You must receive at least the minimum wage; the ordinary week is up to 44 hours (being reduced to 40), with overtime, plus a legal profit bonus (gratificación).
- 3
Understand vacation entitlements
You accrue 15 working days' paid vacation a year after a year of service, rising with long service.
- 4
Register for pensions and health
Pension contributions go to a private AFP and health to Fonasa or an Isapre, plus unemployment insurance.
- 5
Know the severance rules
Dismissal for ‘company needs’ pays severance of one month's pay per year of service (capped at 11 years), with notice or pay in lieu.
- 6
Resolve disputes
Raise issues with the Labour Directorate (Dirección del Trabajo) and, if unresolved, the labour courts.
Checklist
- Written contract (within deadline)
- Minimum wage + up to 44h week + gratificación
- 15 working days' vacation
- AFP pension + Fonasa/Isapre health + unemployment insurance
- Severance (1 month/year, cap 11) on company-needs dismissal
- Notice / pay in lieu
- Anti-discrimination protections
- Dispute route (Dirección del Trabajo / labour courts)
Official authorities
- Dirección del Trabajo
Labour law and standards.
Frequently asked questions
What is the gratificación?
A legal profit-based bonus that most employers must pay, commonly as a capped percentage of your wages.
How much vacation do I get?
15 working days a year after a year of service, increasing with long tenure.
What severance applies?
Dismissal for company needs pays one month's salary per year of service, capped at 11 years, plus notice.
Official-information aggregation, not legal advice. Always verify on the authority's own site.