Employer of Record in Chile
Onboard, pay and manage employees in Chile without opening a local entity. We assume the legal risks and keep you 100% compliant with local labor law — you keep full operational control.
What is an EOR in Chile?
An Employer of Record is a third party that legally employs your workers in Chile on your behalf. Europortage becomes the legal employer — handling contracts, mandatory benefits, tax withholdings and terminations — while you direct your team's day-to-day work.
- Locally compliant employment contracts, drafted and signed in Chile
- Mandatory benefits and social contributions administered
- Payroll, taxes and filings handled by local experts
- Compliant terminations and severance managed end-to-end
When to use an EOR in Chile
Hire without the cost and delay of opening a company in Chile.
Onboard your candidates in days, not months.
Labor law in Chile is complex — we carry the risk for you.
Build a local team before committing to a legal structure.
What an employee really costs in Chile
Employer costs are among the lightest in LATAM — roughly 8–10% on top of gross salary.
| Employer contribution | Rate |
|---|---|
| Social security | 2.78% |
| SIS — life & disability insurance | 1.85% |
| Unemployment insurance | 2.4% (3% fixed-term) |
| Professional illness insurance | up to 3.4% |
| Mandatory benefit | Amount |
|---|---|
| Legal gratification | 25% of annual salary (capped) |
| Vacation | 15 working days (20 in far-south regions) |
| Public holidays | 15 national holidays |
| Minimum wage | CLP 500,000 / month |
Salary, contributions and our fee consolidated. Ask us for an exact estimate for your role.
Everything you need to know before hiring
A practical guide to labor law in Chile — maintained by our local experts.
Payroll, wages and taxes
Salaries are paid monthly, no later than the last business day of the month. Employees contribute 17.6% (AFP pension 10%, health 7%, unemployment 0.6%) plus progressive income tax from 0% to 42%.
Handled by Europortage
Every calculation follows current law and official rates — monitored continuously by our local team, so your payroll is always right.
Working hours and overtime
Maximum legal work week of 45 hours, typically 9-hour days Monday to Friday. Overtime is paid at 150%; Sundays at 130% or a compensatory rest day. Night work (10pm–7am) is restricted for pregnant employees.
Handled by Europortage
Working-time rules, overtime premiums and time-tracking obligations are applied automatically in every payroll cycle.
Mandatory and common benefits
Legal gratification is mandatory: either 30% of net profits shared or, more commonly, 25% of the employee's annual salary capped at 4.75 minimum wages. Private health and meal vouchers are common voluntary perks.
Handled by Europortage
We administer every mandatory benefit and help you build a competitive package for the local market.
Vacation, holidays and leave
15 working days of paid vacation after 12 months (20 days in Aysén, Magallanes and Palena). 15 national public holidays. No formal probation period — contracts bind from day one.
Handled by Europortage
Leave balances, public holidays and statutory licenses are tracked for you — nothing slips through.
Notice and severance
Terminations must follow legal procedure with just cause or severance. Employment protections apply from the first day, so well-drafted contracts are essential.
Handled by Europortage
Terminations are the riskiest moment in LATAM employment. Our legal team runs the entire process cleanly for both sides.
This guide is provided for context only. When hiring through Europortage's EOR service, all payroll, taxes, contributions, contracts and compliance are handled directly by our team.
EOR vs. entity setup vs. contractors
Employer of Record
Hire fast and stay 100% compliant, without opening a company.
- Fast onboarding through our local structure
- Very low risk — compliance carried by Europortage
- Payroll, benefits and taxes included
- Best for hiring fast and testing the market
Entity setup
Your own company in Chile, with full control and full responsibility.
- Slow to start — registration, banking, tax setup
- Medium risk — compliance carried by you
- Best for large permanent operations
Independent contractor
Fast to start, but risky if the relationship looks like employment.
- Quick to engage
- High risk — misclassification penalties
- Best for short, truly independent projects
Hiring in Chile, answered
What are my options to hire workers in Chile?
Three routes: hiring contractors (fast but with reclassification risk), opening a local entity (months of setup and ongoing costs), or using an EOR like Europortage — the fastest compliant option.
How much does it cost to employ someone in Chile?
Chile has some of the lowest employer charges in the region — roughly 8–10% on top of gross salary, plus the annual legal gratification.
What does "Employer of Record" mean in Chile?
Europortage (or our vetted local partner) becomes the legal employer of your talent in Chile: contracts, payroll, contributions and filings run under our responsibility, while you manage the day-to-day work.
Do employees get all their rights under an EOR?
Yes — employees hired through Europortage receive the complete set of statutory rights in Chile: registered contract, mandatory bonuses, paid vacation, social security coverage and severance protections.