Chile offers a stable, skilled Latin American workforce with an individual-account pension system and low direct employer contributions. All-in employer cost runs around 1.05x the gross salary. Here is what to know before your first Chilean hire.
Employment runs under the Labour Code, with written contracts and mandatory enrolment. Pension and health are funded mainly from the employee's salary, while the employer pays unemployment, disability, and accident insurance.
Direct employer contributions are low, around 5%, covering unemployment, disability and survivorship, and work-accident insurance; pension and health are employee-funded.
Pension (about 10%) and health (7%) are deducted from the employee, so the direct employer contribution is comparatively small. A reform is gradually adding an employer pension contribution.
Employees pay pension, health, and income tax, withheld at source. Withholding is the employer's responsibility, which under EOR means ours.
*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.
Compliant Chilean employment contract, payroll, and insurances, handled. One invoice, flat $399 per month.