Chile

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Congratulations on your decision to hire employees in Chile! Chile offers one of South America's most stable economies, with a strong legal framework that encourages foreign investment and provides excellent opportunities for businesses looking to expand into Latin America.

Plane simplifies the hiring process for you by offering automated tax document collection, payroll, benefits, and more, while supporting compliance and maximum efficiency. Still, hiring in a new country can pose certain challenges, so we've put together the following guide on how to navigate the process of hiring in Chile.

Currency

CLP

 Onboarding

2.5 to 4 weeks

Employer Cost

10.35%

Pay Frequency

Monthly

Public Holidays

17

4 Considerations Before Hiring in Chile

As an employer in Chile, it is important to have a comprehensive employment contract that outlines the terms and conditions of the employment relationship. The contract should include need-to-know info on compensation, benefits, vacation time, and sick leave policies.

Before onboarding a new employee in Chile, take a moment to consider the following:

Does your employee have the right to work in Chile?

You must verify that your employee has the right to work in Chile — either by being a Chilean citizen or permanent resident, or by having a foreign passport with a valid work visa such as a Work Contract Visa, Temporary Residence Visa, or Special Work Permit.

Plane Recommendation

Plane helps you conduct a Right to Work verification check for any employees before you onboard them. We can help you determine if you need to assist your new hire in obtaining any work permits or visas.

Does your employee have the right to work in Chile?

You must verify that your employee has the right to work in Chile — either by being a Chilean citizen or permanent resident, or by having a foreign passport with a valid work visa such as a Work Contract Visa, Temporary Residence Visa, or Special Work Permit.

Plane Recommendation

Plane helps you conduct a Right to Work verification check for any employees before you onboard them. We can help you determine if you need to assist your new hire in obtaining any work permits or visas.

How will Chile's changing work week affect your operations?
How will Chile's changing work week affect your operations?
What compensation and benefits are required?
What compensation and benefits are required?
What leave entitlements must be provided?
What leave entitlements must be provided?

Getting Started with Hiring in Chile

Employment Contract

All contracts must specify job description, salary, working hours, and other essential terms of the working relationship.

Getting Started with Hiring in Chile

Employment Contract

Pay Frequency: Employee payroll is monthly, with 12 pay periods per year. In Chile, employers may pay their employees by: day, week, fortnight, or month. (Please note that monthly payroll is the only option available at Plane.) Employers must pay employees' salaries within one month after the end of the pay period.

Payroll Change Cutoff Dates: To meet payroll deadlines, any changes must be submitted to support@plane.com by the cutoff date.

For Chile, the payroll change cutoff date is on the last business day of the previous month. For example, changes to June payroll would need to be received no later than May 31, if May 31 is a business day.

Plane sends payroll summaries to admins at the end of the second week of the month. After that, charges are automatically debited. Payroll summaries are also available to admins in their Plane accounts. Payday may vary based on country requirements.

Hire Calculator

Get an instant, free estimate of how much it will cost to employ your next hire, including taxes.

Once you have sorted out the details mentioned above, you can add the employee to the Plane platform. We provide a step-by-step workflow that shows what tasks need to be completed, as well as real-time updates and notifications. This way, you can stay on top of the hiring process at all times. With Plane, you can confidently hire, knowing that you have a powerful platform at your disposal to manage the entire process from start to finish. Here are the instructions for adding a new employee to the platform:

How to hire and onboard an employee

Plane offers a guided process for administrators and managers to hire and onboard their new employees.

Hiring an employee in a new country can be a complex process, but with the right guidance and resources, it can be a smooth and successful transition. At Plane, we're committed to helping you navigate this process step-by-step. We'll keep you informed and up-to-date with the latest regulations and employment laws.

Frequently Asked Questions

Here are answers to some common questions about hiring employees outside of the US with Plane:

What is the relationship between my company and Plane?

Pilot Platform Inc (Plane) provides the product and service by helping you manage HR, payroll, and statutory requirements. Plane has its own entities and partners that are the EOR/legal employer where the employee is legally hired in the country. Plane and our partner do not manage the performance of the employees since we do not monitor or work directly with them.

What is the relationship between my company and Plane?

Pilot Platform Inc (Plane) provides the product and service by helping you manage HR, payroll, and statutory requirements. Plane has its own entities and partners that are the EOR/legal employer where the employee is legally hired in the country. Plane and our partner do not manage the performance of the employees since we do not monitor or work directly with them.

Can Plane withhold taxes for non-cash compensation (e.g. stocks, options)?
Can Plane withhold taxes for non-cash compensation (e.g. stocks, options)?
Will I be able to pay a bonus, commission, or any other additional payments?
Will I be able to pay a bonus, commission, or any other additional payments?
Can Plane guarantee the employee’s start date?
Can Plane guarantee the employee’s start date?