Work conditions in Chile

The Active Population in Figures

Working Conditions

Legal Weekly Duration

45 hours

Retirement Age

65 years for men, 60 years for women

Working Contracts

Legal dispositions govern work contracts; collective conventions and individual negotiations complement them. 
The formality of the work contract is very rigid unlike starting conditions and licensing constraints that tend to be more flexible.

Chile has four types of work contracts:
-open-ended contracts that are fixed-term contracts lasting for a maximum of one year (or exceptionally two)
-piecework contracts that are used when the worker is employed for a specific time-limited
-task contracts
-professional service contracts

Labour Laws

Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

Cost of Labour

Minimum Wage

CLP 350,000 per month (source: Chilian Ministry of Labour, 2022).

Average Wage

Gross average annual wage in Chile is USD 26,729 (source: OECD, 2020).

Social Contributions

Social Security Contributions Paid By Employers: Accident insurance: 0.93%
Contributions varying according to the risk of the employment activity: maximum 3.4%
Unemployment insurance: 2.4%
Life and disability insurance: 1.99%
Social Security Contributions Paid By Employees: Health insurance contribution: 7%
Pension fund contribution: 10%

Social Partners

Employer Associations

SERCOTEC - Technical Cooperation Service
SOFOFA - Trade-Union Federation of Chilean Industry

Social Dialogue and Involvement of Social Partners

Since 1992 the labour code has recognised the existence of organisations representing workers, the most important of which is the Central Union of Workers (CUT). The CUT is affiliated with the international confederation of syndicates.

Labour Unions

Central Workers Union CUT

Unionisation Rate

15.5% in 2014 (OECD data)

Labour Regulation Bodies

Ministry of Labor and Social Security