Hiring in Chile through an Employer of Record
A Chilean employer now pays its own pension contribution, which is rising year by year, plus unemployment insurance.
On top of salary, the employer pays
- 3.5% Employer pension contribution
- 2.4% Unemployment insurance
What the employer pays on top of salary in Chile
- Employer pension contribution: 3.5 percent of taxable pay, rising each August under the pension reform (Ley 21.735).
- Unemployment insurance: 2.4 percent of taxable pay, on open-ended contracts.
The pension rate rises again from August next year. Fixed-term contracts pay more unemployment insurance. Work accident insurance, a basic rate plus a risk add-on, is left out because our saved copy of the official page did not show the figure.
Yearly cost of one employee in Chile, by vendor
Salary plus the charges above plus the vendor's published monthly fee, for twelve months. Not included: benefits and currency conversion fees.
Vendor fees used
Atlas HXM $599, Deel $599, G-P $599, Multiplier $459, Oyster $699, Pebl (Velocity Global) $399, RemoFirst $199, Remote $699, Skuad $199. Not published: Rippling.
Where these numbers come from
- Employer pension contribution on spensiones.gob.cl read
- Unemployment insurance on dt.gob.cl read
- Each vendor's own pricing page, linked from its name above.