Employer of record in Chile: costs and rules
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The confirmed portion of the employer cost of hiring in Chile through an employer of record is the 3.5% pension contribution under Ley 21.735 from August 2026, which includes the 1.5% disability and survivor insurance (SIS); it is not the total, because employer unemployment insurance, the work-accident mutual and any legal bonus (gratificación) are not yet included, since we have not confirmed them. Provider fees are separate: from $199 per worker monthly at Payoneer Workforce Management (formerly Skuad) to $699 at Oyster on their October 2026 price pages. What US companies most often miss is that this rate rises every year: it reaches 4.25% in August 2027 and 8.5% in August 2033, so a multi-year budget priced at today's rate will come up short.
An employer of record in Chile is a Chilean company that formally employs your hire, pays the employer pension contribution and other social charges through local payroll, and lets you direct the work.
- Employer cost on a sample salary
- 3.5% confirmed portion onlyon top of gross pay
- Currency
- CLP
On this page
What makes Chile different for employers
A pension reform with a fixed schedule. The 3.5% employer contribution from August 2026 splits into 0.1% to the worker's individual account, 1.0% to the life-expectancy social insurance, 0.9% to protected returns and 1.5% SIS, according to the Subsecretaría de Previsión Social. It was 1.0% from August 2025. One open question: the deck counts SIS inside the 3.5%, and we have not confirmed whether employers still pay a separate SIS premium. If they do, the cost is understated.
The work week is shrinking. Under Ley 21.561 the standard week fell to 42 hours on April 26, 2026 (from 44) and goes to 40 hours on April 26, 2028.
Caps are set in UF, an inflation-indexed unit. Pension, health and Ley 16.744 contributions stop at 90 UF a month from February 1, 2026 (89.9 UF in January). Unemployment insurance stops at 135.2 UF (135.1 UF in January).
The minimum wage is CLP 539,000 a month for workers aged 18 to 65 from January 1, 2026 (Ley 21.751), and CLP 402,082 for those under 18 or over 65.
Dismissal for business needs (art. 161) needs 30 days' notice or 30 days' pay in lieu, and after one year of service it triggers severance for years of service. Both are calculated on a monthly base capped at 90 UF, according to the Dirección del Trabajo.
Employment costs and rules in Chile
| Item | Chile |
|---|---|
| Employer social contributions | 3.5% new pension contribution (incl. 1.5% SIS) from Aug 2026, plus unemployment insurance and work-accident mutual, not confirmed today |
| What the employer pays | Ley 21.735 employer contribution, Aug 2026 schedule: 0.1% individual account + 1.0% Seguro Social expectativa de vida + 0.9% rentabilidad protegida + 1.5% SIS = 3.5% (was 1.0% from Aug 2025); rises to 4.25% Aug 2027, 5.0% 2028, 5.7% 2029, 6.4% 2030, 7.1% 2031, 7.8% 2032, 8.5% Aug 2033 |
| Caps and ceilings | Pension, health and Ley 16.744 cap: 89.9 UF per month in Jan 2026, 90 UF from Feb 1 2026. Unemployment insurance cap: 135.1 UF in Jan 2026, 135.2 UF from Feb 1 2026 (Superintendencia de Pensiones) |
| Minimum wage | Ingreso minimo mensual CLP 539,000 per month (ages 18 to 65) from Jan 1, 2026 (Ley 21.751); CLP 402,082 under 18 or over 65 |
| Notice period | Dismissal for business needs (art. 161): 30 days notice or 30 days pay in lieu (indemnizacion sustitutiva), base capped at 90 UF |
| Severance | Severance for years of service applies on business-needs dismissal after 1 year; monthly base capped at 90 UF (formula not stated on the DT page read) |
| Standard work week | 42 from April 26, 2026 (Ley 21.561; was 44 from April 26, 2024; 40 from April 26, 2028) |
| Sample salary used | Not computed (no official CLP rate read) |
| Employer cost on that salary | 3.5% confirmed portion only |
Checked October 16, 2026. Source type: official. Sources are listed at the end of this page.
What an EOR charges to employ someone in Chile
| Provider | EOR fee per employee per month | Deposit | Entity model (provider claim) |
|---|---|---|---|
| Payoneer Workforce Management | from $199 | None listed | Claims owned entities across APAC, MEA, Europe and the Americas |
| Pebl | $399 | Not listed | About 90% of employees on Pebl-owned entities |
| Playroll | from $399 | One month's salary per employee, refundable | No clear owned-entity claim |
| Rivermate | $319 to $639 | Not stated | Claims 38 owned entities |
| Multiplier | $459 (annual) or $499 (monthly) | Sized from costs, fees and notice period (method published, no fixed amount) | Claims owned entities in 160+ countries |
| Rippling EOR | Quote only (third-party reference: $499) | Not listed | Claims Rippling entities; no partner mention |
| Deel | $599 | Not stated by Deel | Claims owned entities in 130+ countries |
| Remote | from $599 | Waived for startups; otherwise not stated | Claims 100% owned entities in 90+ countries |
| Atlas | from $599 | Not published | Claims owned entities in 160+ countries |
| Papaya Global | from $650 | Refundable deposit, amount not stated | Uses in-country partners |
| Oyster | $699 | At least one month of total service cost, refundable (per its terms) | Owned entities and partners |
| Globalization Partners (G-P) | Quote only | Not stated | Information page claims 100+ wholly owned entities |
Source: each provider’s pricing page, checked October 16, 2026. Fees are the provider’s charge on top of salary and the employer contributions above. Some providers adjust prices by country.
Chile's employer pension contribution, 2025 to 2033
| From | Employer rate | CLP per month | CLP per year |
|---|---|---|---|
| August 2025 | 1.0% | 10,000 | 120,000 |
| August 2026 | 3.5% | 35,000 | 420,000 |
| August 2027 | 4.25% | 42,500 | 510,000 |
| 2028 | 5.0% | 50,000 | 600,000 |
| 2029 | 5.7% | 57,000 | 684,000 |
| 2030 | 6.4% | 64,000 | 768,000 |
| 2031 | 7.1% | 71,000 | 852,000 |
| 2032 | 7.8% | 78,000 | 936,000 |
| August 2033 | 8.5% | 85,000 | 1,020,000 |
Math: rate x CLP 1,000,000, and x 12 for the year. Assumes the salary is below the 90 UF cap. Source: Subsecretaría de Previsión Social employer reform deck (official), checked Oct 2026.
Every August the same salary costs more. Ask the EOR whether its quote shows the current step only, and whether its invoice updates automatically each August.
Costing a Chilean hire with the data we have
We have not read an official CLP exchange rate (the ECB does not publish one), so we do not convert a USD 40,000 sample salary, and the EOR fee stays in dollars: $599 a month is $7,188 a year. On a CLP 1,000,000 monthly salary the confirmed portion of the employer cost is CLP 35,000 a month from August 2026 to July 2027. That is not the full employer cost.
We have not yet confirmed from an official source the employer unemployment insurance rates, the work-accident mutual rate, the legal bonus (gratificación), the severance formula, vacation days or public holidays. Each adds to the real cost, so ask the EOR for a written breakdown and check it with the Dirección del Trabajo. Use the international employee cost calculator once your quote is in, and see other Latin American countries in the EOR cost index.
Which EOR to pick for Chile
Our published scores rank Multiplier first at 79 ($459 a month annual, $499 monthly) and Oyster second at 64 ($699 flat, deposit of at least one month of service cost). Remote (62) and Deel (54) list $599. For Chile, the useful questions are whether the SIS is inside the 3.5% or billed separately, and whether the quote includes the gratificación. Compare in our ranking of EOR providers, and read the Oyster, Remote and Deel reviews.
Contractors in Chile
Paying a Chilean worker as a contractor avoids the pension contribution and payroll charges, which is the amount at risk if a full-time, exclusive arrangement is treated as employment, along with the business-needs notice and severance. A contractor of record carries that classification risk; a contractor management platform only processes contracts and payments.
Your own Chilean company instead
At $7,188 a year in fees per person, a team of five costs $35,940 a year through an EOR at $599 a month. A Chilean entity drops that fee but adds incorporation, local accounting and a payroll that tracks the annual pension steps. The EOR or entity decision guide covers the break-even.
Frequently asked questions
How much does it cost to employ someone in Chile in 2026?
How much will the Chilean employer pension contribution rise?
What is the minimum wage in Chile in 2026?
How many hours is the work week in Chile?
What notice is required to dismiss an employee in Chile?
Sources (13)
- Payoneer Workforce Management (formerly Skuad): Skuad pricing page (checked Oct 16, 2026)
- Pebl: Pebl EOR pricing page (checked Oct 16, 2026)
- Playroll: Playroll pricing page (checked Oct 16, 2026)
- Multiplier: Multiplier pricing page (checked Oct 16, 2026)
- Oyster: Oyster pricing page (checked Oct 16, 2026)
- Deel: Deel pricing page (checked Oct 16, 2026)
- Remote: Remote pricing page (checked Oct 16, 2026)
- previsionsocial.gob.cl/wp-content/uploads/2025/09/PPT_REFORMA_EMPLE... (checked October 16, 2026)
- spensiones.cl/portal/institucional/594/w3-article-16885.html (checked October 16, 2026)
- dt.gob.cl/portal/1628/w3-article-118077.html (checked October 16, 2026)
- mintrab.gob.cl/reajuste-al-ingreso-minimo-mensual (checked October 16, 2026)
- dt.gob.cl/portal/1628/w3-article-60604.html (checked October 16, 2026)
- dt.gob.cl/legislacion/1624/articles-129008_recurso_pdf.pdf (checked October 16, 2026)
This page is general information, not tax, legal or accounting advice. Rules and rates change, so check the official source linked above before you file or sign a contract. Read our disclaimer.