Chile flag Chile: Operating a Business in Chile

Work conditions in Chile

The Active Population in Figures

201820192020
Labour Force 9,391,8889,514,5618,860,151

Source: International Labour Organization, ILOSTAT database

 
201720182019
Total activity rate 68.52%68.96%68.90%
Men activity rate 79.17%79.09%78.70%
Women activity rate 57.94%58.88%59.13%

Source: International Labour Organization, ILOSTAT database

 
Employed Persons, by Occupation (% of Total Labour Force) 2016
Wholesale and retail trade; repair of motor vehicles, motorcycles and personal and household goods 20.0%
Manufacturing 11.0%
Construction 8.7%
Agriculture, hunting and forestry 8.7%
Education 8.2%
Transport, storage and communications 7.5%
Real estate, renting and business activities 6.4%
Public administration and defence; compulsory social security 5.4%
Health and social work 5.1%
Hotels and restaurants 4.2%
Mining and quarrying 2.5%
Financial intermediation 2.0%
Fishing 0.8%
Electricity, gas and water supply 0.8%
 

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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.

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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%

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Social Partners

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.
Unions
Central Workers Union CUT
Unionisation Rate
15.5% in 2014 (OECD data)
Labour Regulation Bodies
Ministry of Labor and Social Security

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Latest Update: June 2022

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