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Chile: Pay and benefits

Original author: Andres Valdes, Baker & McKenzie

Updating author: Agustin Alcalde, Clyde & Co

See the legal services provided by the author of International > Chile, including any discounts/offers for subscribers.


  • The payment of remuneration by the employer in return for work performed by the employee is an essential element of the employment contract. (See General)
  • Various statutory rules govern the method and frequency of payment of remuneration, and employees must be provided with payslips. (See Payment of wages)
  • Deductions from pay are subject to a number of restrictions and limits. (See Deductions)
  • Employers must comply with the principle of equal remuneration for women and men who perform the same work. (See Equal pay)
  • There is a statutory national minimum wage, with one rate for employees aged 18 to 65 and a lower rate for employees below the age of 18 and above the age of 65. (See Minimum wage)
  • The main form of pension provision is a statutory scheme whereby employees are required to make payments into an individual account throughout their working lives, with the amount saved in the account funding their income in retirement. (See Pensions)
  • Employers must withhold employees' income tax at source, and employees and (to a lesser extent) employers must pay statutory social security and related contributions. (See Income tax and social security)
  • Employers are not obliged to pay employees during sickness absence, with employees generally receiving benefits from their health insurance provider during such absence. (See Sick pay)
  • Benefits in kind are not explicitly regulated by law and it is up to employers and employees to determine and mutually agree on rules regarding benefits in kind. (See Benefits in kind)
  • Companies must distribute a share of their profits to employees. Employers may choose between two statutory methods of meeting this obligation, or agree another scheme with employees. (See Compulsory profit-sharing)