Employer of Record (EOR) in Chile

Hire in Chile in days, with no entity and no exposure to getting Codigo del Trabajo compliance wrong. We place you with the right vetted EOR partner, at pricing you will not get going direct, and stay on your side for the life of the relationship.

  • Independent advice
  • Vetted partners
  • Operational in days

What an Employer of Record does for you in Chile

An Employer of Record is a company that legally employs your Chilean staff on your behalf. You choose the person and direct their work day to day. The EOR is the legal employer on paper, which is what lets you build a team in Chile without forming your own company.

In practice the EOR partner takes on everything that needs a Chilean legal entity and local expertise: a compliant employment contract under the Codigo del Trabajo, enforced by the Direccion del Trabajo (DT), monthly payroll with Impuesto Unico de Segunda Categoria (IUSC) income-tax withholding and the pension and health deductions Chile’s defined-contribution system requires from the employee’s own pay, employer contributions across several separately capped insurance regimes rather than one combined tax, statutory benefits and leave, and compliant onboarding and lawful exits with the correct statutory ground and notice, since Chile is not at-will. You get a working team in days. The EOR carries the legal and compliance weight; you carry the commercial relationship. The only question worth spending time on is which partner is genuinely strong in Chile, and that is the question we answer for you.

01

Legal employer, on paper

A compliant Chilean employment contract under the Codigo del Trabajo, with all statutory terms correct from day one.

02

Compliant from day one

Monthly payroll, IUSC income-tax withholding, AFP (Administradora de Fondos de Pensiones) pension and Fonasa/Isapre health deductions from the employee’s own pay, employer contributions across the SIS, Seguro de Cesantia, and work-accident insurance regimes, and all statutory filings to the Servicio de Impuestos Internos (SII), the Superintendencia de Pensiones, and the employee’s chosen Mutualidad.

03

No entity required

Statutory benefits, annual leave, notice and severance under the Codigo del Trabajo, and lawful onboarding and exits. You get a working team in days; the EOR carries the legal weight.

How it works: four steps to a compliant hire

From first call to a compliant Chilean hire at work, usually in days.

01 — Scope & quote

We map the role, salary, and start date, and come back with a clear all-in monthly cost. No guesswork, no hidden extras.

02 — Compliant contract

Your employment contract is drafted to Chilean standards by the partner, and we sanity-check the terms and pricing before you sign. Compliant from day one.

03 — Onboard in days

A correct Chilean contract is issued under the Codigo del Trabajo, with all statutory terms from day one. Your hire can start in days.

04 — Payroll & compliance run

IUSC income tax, AFP pension, and Fonasa/Isapre health contributions calculated and withheld, payslips issued, statutory filings made to the SII and the Superintendencia de Pensiones. You direct the work; the compliance just runs.

What EOR in Chile costs

Two parts: the statutory cost of employing someone, and the EOR partner fee. In Chile the statutory employer cost is not one line item: it runs through several separately capped insurance regimes rather than one combined tax. We make all of it transparent before you commit, so there are no surprises.

Employer contributions

Not a single percentage: a stack of separately capped insurance premiums, roughly 1.5% Seguro de Invalidez y Sobrevivencia (SIS, disability and survivor cover) and 2.4% Seguro de Cesantia unemployment insurance for indefinite contracts (3% for fixed-term), plus work-accident cover from 0.90% up to 3.4% and a 0.03% childhood-illness charge, most capped at 90 or 135.2 UF (Unidad de Fomento, a daily-indexed unit) per month. On top, a new Ley 21.735 pension-reform contribution: 1% of pay now, stepping up every August toward a new-component rate of 7% by 2033, which combined with the pre-existing SIS-type charge above brings the total employer pension-track obligation to 8.5% of pay by 2033. Fully costed before you commit.

Minimum wage (2026)

CLP $553,553 per month for workers aged 18 to 65, effective 1 May 2026 under Ley N21.830 (CLP $412,938 for under-18s and over-65s). One national rate, no regional variation.

Income tax (employee)

Progressive IUSC withheld monthly by the employer: exempt to 13.5 UTM (Unidad Tributaria Monetaria, a CPI-indexed monthly tax unit republished by the SII, separate from the daily-indexed UF above), roughly CLP $967,261 at July 2026’s rate of CLP $71,649, then 7 taxed bands from 4% up to a top 40% above 310 UTM/month (~CLP $22.2m). The UTM itself moves every month, so peso equivalents are illustrative only. Borne by the employee, not added to your cost.

EOR partner fee

A transparent per-employee monthly fee. We benchmark across our vetted network, typically 15 to 25% below going direct, and renegotiate for you at renewal.

Why run it through Bradford Jacobs

We know which EOR partners are genuinely strong in Chile, by sector and by complexity. We place you with the right one, at pricing you will not get going direct, and stay on your side for the life of the relationship.

Independent, not a single provider

We are independent: we assess what you actually need, place you with the right vetted partner, secure pricing you will not get going direct, and stay on your side to escalate or renegotiate. You get advice, not a product pitch.

  • Independent advice
  • Vetted partners only
  • On your side at renewal

Pricing you can’t get direct

Chile’s employer cost is not one line item: it is a stack of separately capped insurance premiums, SIS disability cover, unemployment insurance, work-accident cover through a Mutualidad, and a new pension-reform contribution that steps up every August, spread across several regulators rather than sitting on one payslip line. That makes it genuinely easy to under- or over-quote a monthly fee up front. We benchmark across our partner network for rates typically 15 to 25% below going direct, and renegotiate on your behalf at renewal. Most companies do not know how much room there is to negotiate. We do.

  • 15-25% below direct
  • Network benchmarking
  • Renegotiated for you

Straight to the top when it matters

When something needs resolving, and in global employment it sometimes does, you come to us. We escalate directly, past the helpdesk, to people who can actually move it.

  • Direct escalation
  • No support queues
  • Named account contact

Two decades across markets

Two decades placing and managing EOR arrangements across global markets, with the local knowledge of the Codigo del Trabajo, the AFP/Fonasa-Isapre/Mutualidad split, and Chilean termination rules that keeps you compliant.

  • EOR specialists
  • Codigo del Trabajo & DT
  • Risk removed

Built for conversion to your own entity

Most companies use EOR for 12 to 24 months, then move to their own Chilean SpA (Sociedad por Acciones). We plan that crossover and manage the transition when the economics justify it.

  • EOR to entity path
  • Transition managed
  • Crossover planning

Why an EOR is the fastest compliant way into Chile

Two things slow foreign employers down in Chile: the time to incorporate an SpA, and the risk of getting the Codigo del Trabajo’s termination grounds and severance wrong. An EOR removes both.

Working time, leave & contracts

Compliance handled under one national Codigo del Trabajo, enforced by the DT. Chilean law requires mandatory AFP pension and Fonasa/Isapre health contributions from every payslip, and dismissal that is only lawful on a closed list of statutory grounds under Articles 159 to 161, with statutory notice, rather than at-will termination. An EOR carries all of it correctly from day one, so a wrong assumption never becomes a liability.

Operational in days, not weeks

Incorporating an SpA in Chile can be same-day and free through the electronic Empresa en un Dia portal, but you still cannot legally employ anyone until the RUT and registrations clear. An EOR removes that wait entirely: a compliant Chilean contract is issued and your hire starts in days. You prove the market first, then incorporate later only if the headcount justifies it. This is the real value of EOR in Chile: speed into a defined-contribution system with real termination formality, with the compliance carried by an expert.

Everything your Chilean EOR covers

One transparent monthly fee per employee covers all of this. No hidden extras.

Compliant Chilean contract

A compliant Chilean employment contract under the Codigo del Trabajo, issued and maintained for you.

Payroll, pension & health contributions

Monthly payroll run, with IUSC income tax, AFP pension, and Fonasa/Isapre health contributions calculated, withheld, and filed correctly each month.

Statutory benefits

All statutory benefits administered: 15 working days of paid annual leave, 16 public holidays for 2026, maternity leave paid via a subsidio through Fonasa/Isapre with job protection running a year beyond it, and statutory notice on exit, which Chile requires since it is not at-will. Employee deductions run roughly 18 to 19% of gross pay (AFP pension plus its admin commission, minimum health cover, and unemployment insurance on indefinite contracts), deducted from salary, not billed to you.

Compliance & support

Ongoing HR compliance and a single point of contact, for the life of the engagement.

Your questions answered

Straight answers on how Employer of Record works in Chile.

Who is the legal employer of my hire in Chile?

Legally, your hire is employed by the Chilean EOR partner we place you with, which is what keeps you compliant without an SpA of your own. Day to day they work for you: you set the goals, the workload, the relationship. You get the team; the partner carries the legal employer obligations under the Codigo del Trabajo.

Usually within days once the role and salary are agreed, with a compliant Chilean contract from day one. Compare that to registering an SpA and waiting on the RUT and Direccion del Trabajo registrations, during which you cannot legally employ anyone.

There is no single flat percentage. The employer side runs through several separately capped covers: roughly 1.5% SIS, 2.4% unemployment insurance on indefinite contracts, a risk-rated work-accident premium from around 1% up to 3.4%, and a new pension-reform contribution starting at 1% and rising every August toward 7% by 2033. Add the transparent EOR partner fee and you have your all-in cost.

Yes, when done properly. The EOR is a real Chilean legal employer meeting all Codigo del Trabajo, AFP, Fonasa/Isapre, and SII obligations. The risk is using an under-resourced partner, which is exactly why we place you with vetted partners and stay on your side.

The compliant contract, monthly payroll (IUSC income tax, AFP pension, and Fonasa/Isapre health withholding), the full employer contribution stack, statutory benefits and leave administration, and ongoing compliance monitoring through the annual Ley 21.735 step-up. We give you one all-in monthly figure up front, with no hidden extras.

Yes, and most companies do once the headcount and permanence justify it. We manage the transition from EOR to your own Chilean SpA, and can support the incorporation itself, which can be same-day and free through the electronic Empresa en un Dia route. Most use EOR for 12 to 24 months first.

Ready to hire in Chile?

Tell us the role and we will come back with a compliant, all-in monthly cost and the right partner, usually within a day. No entity, no lock-in, no pitch, just the fastest compliant way to get your person working in Chile.

Tax and labour data verified July 2026 (SII, DT, Superintendencia de Pensiones). Figures change; we confirm the current position when we scope your hire.