How to Hire in Chile? A Comprehensive Guide

Expanding your business into Chile opens doors to a skilled workforce and a dynamic market. But navigating the legalities of hiring employees in a foreign country can be daunting. This comprehensive guide will equip you with the knowledge you need to successfully hire top talent in Chile, ensuring compliance and a smooth experience for both you and your new team.

The First Step: ESTABLISHING YOUR PRESENCE.

There are two primary ways to achieve this in Chile:

Setting Up a Legal Entity: This approach grants you complete control over your operations by registering a branch office or subsidiary within Chile. However, it requires navigating complex legal and bureaucratic processes that can be time-consuming.
Partnering with an Employer of Record (EOR): Companies like Ongresso act as the legal employer of your workers in Chile. This option offers a faster and more streamlined approach, especially for businesses new to the Chilean market. An EOR handles payroll, taxes, benefits administration, and ensures compliance with local labor laws, freeing you to focus on core business activities.

Understanding the Landscape: Key Considerations in Chilean Labor Law

Here are some key points to remember when building your team in Chile:

Contracts: Indefinite contracts are the norm in Chile, offering employees benefits and job security. If you require a fixed-term contract, ensure it's clearly specified in writing.
Work Hours & Overtime: Employees cannot work more than 45 hours a week without overtime pay. Overtime rates vary depending on the number of hours worked and the time of day.
Benefits: Chilean law mandates a comprehensive benefits package for employees. This includes social security contributions, private healthcare options (ISAPRE) or the public system (FONASA), minimum vacation time of 15 days per year, and severance pay.
Worker Unions: While present in Chile, labor unions play a less prominent role compared to some other countries.

Finding the Perfect Fit: Strategies to Attract Top Talent

Once you've established your presence, it's time to start attracting the best and brightest Chilean talent. Here are some effective strategies:

Leveraging Job Boards: Utilize popular Chilean job boards like Indeed Chile or Laborum to reach a wide pool of potential candidates with diverse skill sets.
Partnering with Local Recruiting Agencies: Partnering with recruitment agencies specializing in your industry allows you to tap into their expertise and networks, giving you access to a curated pool of qualified candidates.
Building Your Professional Network: Attend industry events or connect with Chilean professionals on LinkedIn. This approach allows you to discover hidden gems and build relationships with potential candidates before a formal hiring process begins.

Work Permits & Visas: Ensuring Legal Employment

Foreign workers in Chile may require a work visa, depending on their nationality and the length of their stay. Here's a breakdown of the most common types of work visas:

Temporary Work Visa: This visa is suitable for workers coming to Chile for a specific project or a period less than one year.
Subject to Contract Work Visa: This visa is issued for workers with a valid employment contract with a Chilean company.
Permanent Resident Visa: This visa is necessary for most employees who plan to stay in Chile long-term.

The employer typically initiates the visa process with the Chilean Department of Immigration. Once approved, the employee can apply for the appropriate visa at a consulate or the Department of Immigration.

A Smooth Onboarding Process: Get Your Team Up and Running

A well-structured onboarding process is key to integrating your new Chilean employees into your team effectively. Here's a step-by-step guide to obtaining work ID cards for your team:

Employee Eligibility: Ensure your employees meet basic requirements, typically being 18 years old and having legal immigration status.
RUN Inscription: Employees need a RUN (Unique National Registry Number). This can be obtained online or at local registration offices.
Social Security Registration: Register your company and employees with the Chilean social security system (ISAPRE or FONASA) for health benefits and pension contributions.
Work Visa (if applicable): For foreign workers, secure the appropriate work visa through the Department of Immigration.
Work ID Application: Employees can apply for their work ID (RUT) through the Internal Revenue Service (SII).

By streamlining this process, you'll have your team ready to contribute and benefit from Chile's dynamic work environment.

Compensation & Taxes: Understanding the System

Salary & Payment: Chilean law mandates paying employees in Chilean pesos (CLP) through a local bank account designated by the government.
Taxes: Employers withhold income taxes and contribute to social security on behalf of their employees. Workers file their own annual tax returns, but partnering with an EOR like Ongresso can simplify this process by handling tax withholdings and fillings for you.

Investing in Your Team's Success

A competitive benefits package is essential for attracting and retaining top talent in Chile. Here's how the Chilean system offers a unique opportunity to optimize your investment:

Reduced Employer Burdens: Strong mandated benefits like healthcare and social security minimize employer burdens compared to some other countries.
Happy and Productive Employees: Invest in a happy workforce with attractive perks like private health insurance and food vouchers. This can lead to increased productivity, lower turnover, and a more positive work environment.
Standing Out from the Competition: A comprehensive benefits package can help you differentiate yourself from competitors, making it easier to find and retain skilled employees in a competitive job market.

The Advantage of Partnering with an Employer of Record

While navigating the legalities of hiring in Chile can be complex, partnering with an Employer of Record (EOR) like Deel offers a multitude of advantages:

Reduced Time to Market: Skip the lengthy process of establishing a legal entity. Ongresso handles all the legalities, allowing you to focus on finding and onboarding talent quickly.
Compliance Expertise: Your EOR team stays up-to-date on ever-changing Chilean labor laws, ensuring your company remains compliant and avoids costly penalties.
Simplified Payroll & Tax Administration: Say goodbye to complex payroll calculations and tax filings. Ongresso manages all aspects of payroll processing, tax withholding, and social security contributions.
Reduced Risk & Liability: As the legal Employer of Record, Ongresso takes on the legal and financial risks associated with employment in Chile, protecting your business.
Enhanced Employer Brand: Attract top Chilean talent by offering competitive compensation and benefits packages without the administrative burden. Deel helps you design a benefits plan that complies with local regulations and showcases your commitment to employee well-being.
Local Support & Expertise: Ongresso's team in Chile provides on-the-ground support for your employees, addressing any questions or concerns they might have. This fosters a sense of security and removes potential language or cultural barriers.
Scalability & Flexibility: Whether you're hiring a single employee or a large team, Ongresso scales with your needs. Easily adjust your workforce as your business grows in Chile without the complexities of managing a separate legal entity.
Cost-Effectiveness: While the initial setup cost of establishing a legal entity can be high, partnering with Ongresso is often a more cost-efficient solution, especially for businesses new to the Chilean market. You only pay for the services you need, eliminating the need for additional staff or administrative resources dedicated to HR and compliance.

Partner with Ongresso to Build Your Success in Chile

By partnering with Ongresso as your EOR, you can gain a competitive edge in the Chilean market. Our comprehensive services free you to focus on what matters most – growing your business and building a successful team in Chile.

Contact Ongreso Today!

Let our team of experts guide you through the Chilean hiring process. We'll answer your questions, assess your needs, and create a customized solution that empowers you to achieve your goals in Chile.