Indefinite hire
Write Labour Code terms and the contribution mix for an AFP-affiliated worker.
Chile EOR Guide
Hiring in Chile: labour contract, pension reform and payroll
A Chilean hire needs a labour-code employment contract, Dirección del Trabajo processes, and a pension-and-insurance file that now includes the employer contribution introduced by the pension reform. Previred declarations are part of monthly payroll, not an optional add-on.
Employment system
What shapes a Chile hiring plan
ContractDocument the employment relationship under the Labour Code
Working timeApply current hours rules, including the 40-hour reform
PensionsDeclare the employer pension contribution for AFP affiliates
PayrollFile contributions through the employer declaration channel
These are planning inputs. Employee category, location, compensation, immigration status, collective terms and later rule changes can alter the required process.
Hiring decision
Configure the contract and the August 2026 pension file together
Fixed-term hire
Check unemployment-insurance shares and term limits before repeating contracts.
Compensation change
Recalculate imponible pay and contribution ceilings when cash pay changes.
Country-specific workflow
The records and decisions that need separate review
The Labour Directorate administers the employment relationship
The Dirección del Trabajo publishes the Labour Code, employer procedures and inspection guidance. Record duties, workplace, working time, pay and termination terms so they match the employment contract and any Mi DT filings.
Chile's 40-hour working-time reform is an active DT topic. Do not copy a 45-hour week into a new contract without checking the current phase for the establishment.
Primary reference: Dirección del Trabajo
Employer pension contributions are phasing in
ChileAtiende, citing the Instituto de Previsión Social, states that from August 2026 remuneration employers of AFP-affiliated workers declare an additional employer pension contribution. The official page dates a 3.5% employer total at that step, with later increases toward 2033.
The contribution is declared through Previred on the same calendar as other social-security items. Pensioners and some age-based exemptions are carved out. Keep the calculator and the payroll specification on the current phase rather than a 2033 end-state rate.
Primary reference: ChileAtiende — employer pension contributions
AFP, health and unemployment remain worker-specific
Employee pension and health contributions, AFP commissions and unemployment insurance still depend on contract type and the chosen fund. Occupational-accident contributions vary by risk.
Use Superintendence of Pensions and current contribution-ceiling tables for the payroll month. A single blended employer percentage will miss the reform item, the unemployment-insurance split and the accident-rate add-on.
Primary reference: Superintendence of Pensions
Control points
What to catch before onboarding
Each item can change the budget, start date or employing route.
Leaving the new employer pension contribution out of the 2026 cost model
Using a 45-hour week after the 40-hour reform has taken effect for the site
Treating AFP commission as a universal rate
Filing Previred from a payroll register that does not match the labour contract
Primary sources
Official references for Chile
Open the current authority guidance before making a final employment, payroll, tax or immigration decision.
Reference links checked: 30 September 2026. General operational information; confirm the current requirements for the worker and engagement.
Plan the hire
Review the Chile case before the offer goes out.
Share the work location, role, compensation, worker status, target date and any immigration dependency. We will identify the employing path and open verification items.