CHILE Law and Practice Contributed by: Constanza Contreras, Gabriela Muñoz and Juan Francisco Reyes, SCR Abogados
1.4 Compensation The following employee compensations are pre - scribed by law. • Monthly minimum wage – There is a statutory national minimum income, which is set as a month - ly amount depending on the employee’s age, that increases by law generally once or twice a year. (a) As of 1 May 2025, the monthly minimum wage for employees over 18 and up to 65 years of age is set at CLP529,000. As of 1 Janu - ary 2026, the monthly minimum wage for the aforementioned employees will increase to CLP539,000. The statutory minimum wage is not applicable to apprentices. (b) As of the same date (1 May 2025), the mini - mum wage for workers under 18 or over 65 years of age is CLP394,622. As of 1 January 2026, the monthly minimum wage for said workers will rise to CLP402,082. (c) As of 1 May 2025, the minimum income for non-remuneration purposes is set at CLP340,988. As of 1 January 2026, this minimum income will increase to CLP347,434. There are two main rates, depending on the employee’s age. (d) Employees subject to a full-time work schedule shall have a monthly base salary that must be at least equal to the relevant statutory minimum wage. Part-time employees must be paid at least the corresponding statutory minimum wage, calculated in proportion to their work - ing hours. Employees that are not subject to a work schedule are entitled to a total monthly remuneration at least equal to the minimum wage. • “Full Week Payment” ( Semana Corrida ) – Employ - ees who receive variable remuneration accrued on a daily basis, are entitled to receive “full week payment” consisting of the payment of remunera - tion for the Sundays and holidays not worked dur - ing the same week based on the average of daily variable remuneration accrued for the said week. Additionally, when an employee receives base salary and variable monthly remuneration, they are entitled to receive a “full week payment” consisting of a payment of variable remuneration correspond - ing to Sundays and holidays not worked based on
the average of the variable remuneration accrued during the corresponding week. • Profit-sharing – Part of the company’s profits should be distributed by the company among its employees. There are three alternatives to comply with this legal obligation. (a) Statutory profit-sharing (Article 47 of the Labour Code) – By distributing once each fiscal year among its employees at least 30% of the net profits earned by the employer during that particular year in proportion to their corre - sponding remunerations. (b) Statutory alternative of Article 50 of the Labour Code – By paying to each employee annually an amount equivalent to 25% of the monthly remuneration accrued during the fiscal year with a limit of 4.75 monthly minimum wages. (c) Conventional profit-sharing – By agreeing with the employees another profit-sharing payment equal or higher than those detailed above. • Moving to other places – Should the employee change their residency because of the employ - ment contract, the employer must pay reasonable relocation costs. • Homework expenses – The employer must pay the employee the necessary expenses in the case of homework, including travel expenses when the employee is required to be physically present at the employer’s facilities. • In Chile, there are no mandatory wage adjustments or entitlement to a 13th salary. 1.5 Other Employment Terms Annual Leave According to the Labour Code, employees who have completed one year of service with an employer are entitled to 15 working days of fully paid annual vaca - tion. Saturdays, Sundays and public holidays are excluded from the count of working days for these purposes. Employees who work in the southernmost regions of the country are entitled to 20 working days of annual vacation. Annual leave must generally be taken as a continu - ous period; however, any vacation days exceeding ten may be split, provided there is mutual agreement between the employer and the employee.
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