According to Pebl's employment agreement template, when is the salary due in Chile?

Per the employment agreement template for Chile, salary is payable on the last business day of the corresponding month.

Is salary payment monthly and is payment standard at the end of the month in Chile?

In Chile, salary payment can be done weekly, biweekly, or monthly, as agreed upon by the employer and employee. However, the payment interval must not exceed one month.

Should the employment agreement in Chile specify salary in monthly or annual amounts?

In Chile, the employment agreement should specify the salary as a monthly gross amount.

What tax and social security obligations do employees have in Chile?

Chilean nationals who are residents are taxed on their worldwide income. For foreign nationals who are residents, they are initially taxed only on their Chilean-sourced income for the first 3 years of their stay. After this period, all their income, regardless of its source, becomes taxable. Taxable income includes:

• Salaries
• Pensions
• Other forms of compensation

In 2023, personal income is subject to progressive tax rates ranging from 0% to 35.5%.

Both employers and employees in Chile are required to make contributions to the following:

• Pension fund
• Health insurance scheme
• Workers' compensation fund
• Unemployment insurance
• Disability fund

What are the details of the statutory bonuses and 13th/14th-month salary, including the local name and payment schedule?

In Chile, employers are required by the Labor Code to provide a profit-sharing bonus to employees, distributing 30% of their net annual income each fiscal year.

At Velocity Global Chile, compliance with local laws is ensured by paying employees a bonus when the company generates a net profit for the financial year. As per our policy, employees receive a bonus amounting to 25% of their total annual remuneration, capped at 4.75 times the monthly minimum wage, regardless of the company’s net profit. This bonus is paid out monthly.

What are the details of the customary bonuses, including the 13th or 14th-month salary, and when are these payments typically made in Chile?

In Chile, while not mandated by law, it is customary for employers to provide annual bonuses to their employees. Typically, these bonuses equate to one month's salary and can be distributed in the following ways:

• As two installments: one in September, often referred to as "Aguinaldo de Fiestas Patrias" for Independence festivities, and another in December, known as "Aguinaldo de Navidad" for Christmas.
• A single payment in December.

The amount of these bonuses can vary by company and may be either a fixed sum or a percentage of the employee's monthly base salary.

What is the minimum wage information in Chile?

As of May 1, 2025, the monthly minimum wage in Chile is CLP 529,000.