Hiring Employees in Chile: A Simple Guide for Foreign Companies
From employment contracts and working hours to payroll costs, statutory contributions, and employee benefits, hiring in Chile involves several local requirements. This guide covers the key rules and practical considerations foreign companies need to understand before hiring.
Author: Wide LATAM
Sep 02, 2026 | 4 min read
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Hiring employees in Chile gives foreign companies access to a stable and skilled talent market. Chile offers predictable employment rules and a strong institutional framework, making it an attractive option for companies expanding across Latin America.
At the same time, Chilean labor law includes specific requirements around contracts, payroll, benefits, working hours, and termination.
This guide explains how hiring in Chile works, the main employment considerations, and what foreign companies should know before building a local team.
Can foreign companies hire employees in Chile?
Yes. Foreign companies can hire employees in Chile while complying with local employment, payroll, and social security requirements.
For companies that do not have a local entity, an Employer of Record (EOR) can provide a practical way to hire employees in Chile while managing local employment and payroll requirements.
The EOR becomes the legal employer and manages key employment responsibilities, while the foreign company continues to manage the employee’s day-to-day work.
An EOR can help international companies manage local employment requirements in Chile while providing the structure and support needed to hire compliantly.
Chile employment basics: what you need to know
Employment relationships in Chile are governed by detailed labor rules that employers need to follow from the start.
Key points to understand before hiring:
- Indefinite-term contracts are the standard for ongoing roles
- Fixed-term contracts have specific legal requirements
- The workweek is currently 42 hours and will decrease to 40 hours by 2028
- Overtime is generally paid at a 50% premium
- Mandatory payroll contributions and benefits increase the total cost of employment
- Termination follows specific rules and can create significant financial exposure if handled incorrectly.
What are the main employment costs?
Salary is only part of the total cost of hiring in Chile.
Employers need to account for statutory contributions, unemployment insurance, work injury insurance, vacation accrual, and gratificación, Chile’s statutory profit-sharing mechanism.
Chile’s pension reform will also affect employment costs over time. Employer contributions start at 3.5% in August 2026 and are scheduled to increase gradually to 8.5% by 2033.
What about vacations and other benefits?
Employees are entitled to 15 business days of annual leave after one year of service, equivalent to approximately three calendar weeks.
Chile also provides statutory maternity, paternity, bereavement, and sick leave protections.
Foreign employees also need the appropriate work authorization from Day One, with requirements and processing times varying by nationality and visa type.
Why companies consider EOR to hire in Chile?
For international companies, an EOR can be one option for hiring in Chile while managing local employment and payroll requirements. Depending on the company’s expansion plans and workforce needs, the model can offer:
- Faster access to local talent without establishing a local entity
- Local management of payroll and employment requirements
- Support with statutory contributions and employee benefits
- Help navigating local employment compliance
- Flexibility to build and scale teams in Chile
Final Thoughts
Expanding into Chile can open the door to a strong local talent market, but successful hiring starts with understanding the country’s employment framework and planning for its local requirements.
The right hiring approach will depend on your business structure, growth plans, and workforce needs. By assessing these factors from the start, companies can build their presence in Chile with greater clarity and confidence.
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