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Country Details

Currency

Chilean Peso (CLP)

Official language

Spanish

Capital

Santiago

Is English spoken?

Yes

Time Zone

GMT - 3:00

Salary payment frequency

Monthly

General Overview & Economic Facts

Information

Companies earning profits in Chile are required to give all employees an annual statutory bonus in addition to their base pay
Chile is among the most industrialized countries in Latin American and some of its key industries include mining (copper, coal and nitrate), manufactured products (food processing, chemicals, wood) and agriculture (fishing, viticulture and fruit)
The country has a well-developed financial sector, including a highly regarded pension system and a sophisticated stock market. The Santiago Stock Exchange is one of the largest and most important in the region.

Population size

1,75,74,003

GDP

$359B

Inflation level

4.10%

Average earning + minimum wage

Average earning- 1,850,000 CLP per month
Minimum wage - 410 000,00 CLP per month

Overview of the labour law

The labor law in Chile can be considered relatively stringent compared to some other countries, as it provides a wide range of protections and benefits for workers. For example, it sets minimum wage levels, limits the number of working hours per day and week, mandates vacation time, and requires employers to provide social security benefits to their employees. However, some critics argue that the law could be more robust in protecting workers rights, particularly with regards to the enforcement of labor standards and the treatment of migrant workers. In recent years, there have been calls for reforms to strengthen labor protections and address issues such as discrimination, unequal pay, and precarious work arrangements
The labor law in Chile is generally balanced between the interests of employers and employees, with provisions designed to protect the rights of both parties. For example; The Labor Law requires employers to have just cause for terminating employees and provides for severance pay in certain cases of termination. At the same time, the law also recognizes the rights of employers to manage their businesses and make decisions regarding hiring, promotion, and termination. Employers are also allowed to engage in collective bargaining and other forms of negotiation with their employees

Employment Details

Number of Public Holidays

15

Working Hours

Working HoursMaximum = 10,00 hours (p/d)Maximum = 45,00 hours (p/w)Average working hours a day comes out to be 7.5 hours.Sundays will be a holiday. Rest days will begin at the latest at 9:00 p.m. on the day before Sunday or a holiday and will end at 6:00 a.m. the day after, except for time changes that occur due to the rotation of work shifts.

Benefits
  • Health Insurance
  • Vision Insurance
  • Dental Insurance
  • Pension or 401(K)
  • Mental Health Support
  • Life and Disability Insurance
Overtime

Maximum = 2,00 hours p/dNo more than 2 overtime hours per day). Overtime must be paid with a 50% surcharge.

Notice Period
Probation Period
Severance Pay
Employee Income tax

42 864 - 55 111 (CLP thousands) - 23%
55 111 - 73 482 (CLP thousands) - 30.4%
73 482 - 91 852(CLP thousands) -35%
91 852 - and over (CLP thousands) - 40%

Employer Social cost
Employee Social cost

Benefit packages

Health Insurance
Vision Insurance
Dental Insurance
Pension or 401(K)
Mental Health Support
Life and Disability Insurance

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