Social security - 2.78%
Unemployment insurance - 2.4% - 3%
Professional illness insurance - varies by industry, max 3.4%
Social insurance - 17.6%
Unemployment insurance - 0% - 0.6%
|GROSS INCOME||PROGRESSIVE TAX RATE|
|Up to CLP680,022||0%|
|CLP680,022,01 - CLP1,511,160||4%|
|CLP 1,511,160.01 - CLP 2,518,600||8%|
|CLP 2,518,600.01 - CLP 3,526,040||13.5%|
|CLP 3,526,040.01 - CLP 4,533,480||23%|
|CLP 4,533,480.01 - CLP 6,044,640||30.4%|
|CLP 6,044,640.01 - CLP 15,615,320|
|More than CLP 15,615,320||40%|
Paid time off: After one year of employment 15-20 days + 15 public holidays
Paternity leave: 5 days
Sick leave: Unlimited
Parental leave: 12 weeks paid
Maternity leave: 18 weeks
HQ country employment & payroll
Independent contractor agreements
Direct local employer setup
Partnering with an Employer of Record Chile /full-service Professional Employer Organisation
Setting up a local company in Chile is relatively straightforward. However, the difficult part comes after the initial setup when the employer needs to run payroll for their Chile employees every month, file taxes, extend and manage employee benefits, and follow changes in rules and regulations to employment law. Here is an overview of everything you will find yourself needing to do.
As with every other country, there are certain costs associated with employing a worker in Chile that come on top of the gross salary you are offering. A Chile employer must contribute to social insurance, unemployment insurance and professional illness insurance. To view the exact percentages and amounts given the salary you are planning to offer, you can use our handy calculator tool.
Boundless as the Employer of Record Chile files all pertinent taxes, and other contributions to the social system for the Chile employee to be compliant.
In Chile, both employers and employees have to pay taxes. For employers, these include social insurance, unemployment insurance and professional illness insurance contributions. For employees, these are social insurance contributions, as well as income tax. To get a clear overview of both employee and employer taxes, use our salary breakdown calculator, submitting any additional data needed and get a downloadable pdf like this one.