Hiring Employees – PEO versus Entity Setup in Chile

Chile remains the most stable region in Latin America to conduct business activities in. Chiles open business environment, a range of attractive sectors/industries, a highly educated workforce, many whom are fluent in English, make the region a great place to conduct commercial operations. After successfully completing your company formation in Chile, it is time to start hiring personnel. However, employing staff in Chile differs from other countries. It is of vital importance that employers are aware of their obligations with regards to employment in order to stay compliant with local law.

Having a large working population with a good pool of candidates is appealing to new companies trying to expand into the Chilean market. However, there are general employment rules in Chile that have to be considered before hiring employees.

In Chile, it is mandatory for companies to share at least 30% of their taxable income with employees. Employees are entitled to 15 working days (Monday to Friday) paid vacations after 1 year of continuous employment and employees with 10 or more years of experience receive an additional day of vacation for every subsequent three years of service.

Employees can be hired part-time or full-time. Fixed-term employment agreements have a maximum duration of 12 months and can be extended up to 24 months for employees holding a technical position or having a professional title granted by an educational institution recognized in Chile

Biz Latin Hub can act as your local employer of record and assist you to successfully operate in this region. We invite you to learn more about our accounting and legal experts, our Hiring and International PEO solutions and hiring support that we can provide in Chile by reviewing our presentation below. This presentation was designed by our local experts and contains all the information you need to know when choosing to hire employees in Chile.

If you have any more questions about how to hire employees in this vibrant country, reach out to our friendly team in the Chile office today.