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 (current threshold, reform under consideration).

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

As of January 1, 2026, a new minimum monthly income of CLP 539,000 (approx. USD 620) is in effect in Chile for workers aged 18 to 65. For workers under 18 and over 65, the minimum income is $402,082 (according to Law No. 21,751).

Average Wage

Most recent data indicate an average salary in Chile of about USD 23,500 per year, that is, USD 1,958 per month, if we calculate assuming 12 payments per year.

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