How to Hire Employees in Chile: Complete Guide
Tap into Chile’s work landscape, top sectors, and hiring trends and learn how to hire compliantly.
How to Hire Employees in Chile: Complete Guide
Tap into Chile’s work landscape, top sectors, and hiring trends and learn how to hire compliantly.
Language
Spanish
Time Zone
UTC -4
(-4 hour EST)
Hub Cities
Santiago, Valparaiso and Concepcion
Top Sectors
Mining, Manufacturing, and Agriculture
Currency
CLP (Chilean Peso)
1 USD = 955.36 CLP
(as of April 2024)
English Literacy
Ranked 4th
in Latin America
Language
Spanish
Time Zone
UTC -4 (-4 hour EST)
Hub Cities
Santiago, Valparaiso and Concepcion
Top Sectors
Mining, Manufacturing, and Agriculture
Currency
CLP (Chilean Peso) 1 USD = 955.36 CLP (as of April 2024)
English Literacy
Ranked 4th in Latin America
In recent years, remote work has gained significant popularity globally. As companies increasingly recognize the benefits of hiring remote workers, Chile has emerged as a promising market for those looking to expand their virtual teams, especially considering the abundance of jobs in Chile in tech sectors.
If you are considering incorporating remote Chilean talent into your team, this guide aims to provide you with an overview of what you need to know to hire employees in Chile: key considerations, popular roles, average professional salary in Chile, and essential tips for finding, hiring, and retaining top remote professionals.
Workplace Landscape in Chile
Chilean culture, known for its resilience and adaptability, has undergone a notable shift towards adapting its workforce and tech infrastructure to digital transformation. This includes enhancing remote work environments and promoting advanced digital skills among Chilean people.
As one of the fastest-growing economies in the region, Chile’s digital market is also on the rise. Information Technology (IT) is recognized as one of the country’s most promising sectors with substantial growth potential, driven by the integration of artificial intelligence (AI) and other advanced technologies.
Chile ranks as the most innovative country among 18 economies in LatAm and the Caribbean, with a population of over 19 million. The landscape of tech in Chile is rapidly evolving, and has one of the largest talent pools in the region in key areas such as software development, fintech, biotech, digital marketing, e-commerce, cybersecurity, mining tech, IoT, and automation. Chile jobs in these areas are in high demand due to the sector’s dynamic growth.
Hiring Trends in Chile 2024
Santiago, Chile’s capital, is third in LatAm for digital talent availability. As of 2020, job opportunities in Chile have grown significantly for the IT sector, with nearly 61,000 people employed. This reflects the vibrant Chile jobs market, particularly in tech-driven roles.
Many Chilean firms are adopting AI and data analytics to enhance their hiring processes. This integration not only streamlines recruitment but also increases efficiency in selecting candidates.
There is a growing preference for skill-based hiring in Chile. Employers are emphasizing candidates’ practical skills, adaptability, and problem-solving abilities over formal qualifications.
Workspace Landscape in Chile
Characteristics of Chilean Talent
Talent Hubs in Chile
Remote Roles to Hire in Chile
Review Potential Candidates in Chile
Labor Laws in Chile
How to Hire Talent in Chile
Holidays in Chile
Labor Costs in Chile vs USA
How to Pay Talent in Chile
Start Hiring Remote Chilean Talent
Characteristics of Chilean Talent
Remote Employment Growth
In Chile, the sectors of finance, insurance, management, business services, and IT are great for remote work due to high demand and the digital nature of the tasks involved.
Exceptional Education Levels
In 2023, tech-related careers were the most pursued in Chile, attracting 28.5% of students, with a yearly growth rate of 7.1%. University of Chile is a significant contributor to this sector.
Top Cities Proficient in English
In general, English proficiency in Chile is considered as moderate. Concepción, Viña del Mar, and Valparaíso stand out by concentrating the highest level of English-skilled professionals.
Talent Hubs in Chile
To achieve successful hiring in Chile, it is crucial to focus your search on cities exhibiting specific innovation trends in various sectors. Consider the following:
Santiago: Considered the country’s tech and business center, with the presence of many startups and multinational companies with strength in software development, fintech, and biotech. Also home to Chile’s most prestigious universities.
Valparaiso: Known for its strong shipping and logistics sector, critical for international trade. It excels in high-tech industries like software development, IT, digital marketing, e-commerce, and fintech, supported by top universities.
Concepcion: Manufacturing hub specializing in forestry, steel, and food processing. It is rising as a tech center for startups and companies in software development, IT, e-commerce, digital marketing, and cybersecurity.
Antofagasta: Center for mining and tech in Chile, with a focus on software development and IT services. Known for having a strong mining technology, IoT, and automation sector.
Viña del Mar: Known for its tourism, festivals, and culture, as well as its business environment and top educational institutions. It’s emerging in the tech sector, attracting startups and boosting innovation in digital services and software.
Cultural Considerations of Chilean Talent
Chile’s culture is strongly relationship-driven, where networking and establishing personal connections with colleagues, business partners, and clients is essential before engaging in significant dealings and driving career success.
Additionally, Chilean people are increasingly globally minded, with many seeking opportunities for international collaboration and experience. They are open to diverse perspectives and approaches, which enriches their contributions to global teams and projects.
Remote Roles to Hire in Chile
When considering hiring remote talent, certain jobs in Chile stand out as particularly suitable for remote work, such as:
- Software Developer
- Digital Marketing Specialist
- Customer Support Specialist
- Graphic Designer
- Data Analyst
- IT Consultant
- Technical Writer
- Project Manager
- Human Resources Specialist
- Sales Representative
Review Potential Candidates to Hire in Chile
Labor Laws in Chile
Chile has robust labor laws designed to protect workers’ rights. If considering hiring employees in Chile, it is crucial to be familiar with and comply with the following regulations:
Salary Payment: New employees’ salaries are set through employment contracts and collective agreements, paid at the end of every month.
Minimum Wage: Currently, the minimum wage in Chile is approximately USD 506.55 per month. It is recommended to offer significantly more competitive salaries than the local average.
Holidays: Chile celebrates 10 national holidays per year, including Labor Day and Chile’s Independence Day. Respecting holidays in Chile is crucial for employee satisfaction.
Overtime Pay: Employees are entitled to receive compensation for overtime hours if they work more than 45 hours in a five or six-day workweek.
Vacation Rights: After 12 months of work, employees are entitled to up to 15 days of paid vacation, which are usually taken consecutively.
Christmas Bonus: Workers in Chile receive an additional income equivalent to one month’s salary. It is typically paid out in December, to provide employees with additional income for holiday expenses.
Social Security Benefits: The social security system in Chile includes healthcare, retirement by age, pension contributions, severance pay, as well as maternity and paternity leave.
By diligently complying with these labor regulations, you can ensure a fair and favorable working environment for your employees and business. Labor laws in Chile are essential and must be followed closely.
How to Hire Talent in Chile
When considering recruiting talent in Chile, it is crucial to understand the different options available and the legal implications involved. Here are three effective ways to hire in Chile:
1. EOR (Employer of Record)
This entity becomes the official formal employer for your remote hires, handling legal, tax, and HR responsibilities of your Chilean employee. This is the ideal method to hire remote Chilean talent without establishing a local entity.
2. Contractor
A flexible alternative that encompasses the need for a formal employment is to hire contractors. It simplifies the process but requires clear agreements with your new chilean team to comply with local labor laws and tax regulations.
2. Staffing Model
An approach that involves partnering with a specialized staffing agency in Latin America streamlines recruitment, screening, and administrative tasks, serving as a crucial link between your company and local talent.
At Lupa, we expertly blend EOR, contractor engagements, and staffing models, providing a full-spectrum solution for hiring Chilean talent. Our service and strategic partnerships ensure compliance, flexibility, and efficiency, connecting you with top local talent and streamlining your expansion into Chile.
Holidays in Chile
To ensure respect for the culture and diversity of your Chilean team, you must consider providing days off on the following 10 national holidays in Chile:
January 1: New Year
March 29: Good Friday
May 1: Labor Day
May 21: Navy Day
May 25: May Revolution
September 18: National Independence Day
September 19: National Holidays
October 12: Day of the Race
November 1: All Saints Day
December 8: Immaculate Conception
December 25: Christmas Day
By providing this time for employees to celebrate and honor these significant dates, you will strengthen an inclusive and respectful work environment that acknowledges local traditions.
Labor Costs in Chile vs. USA
When hiring remote workers or contractors in Chile, U.S. companies can enjoy significant savings and greater workforce flexibility, improving operations and stimulating business growth. Here is the annual average salary for highlighted remote roles in Chile compared to costs in the United States:
|
Career areas
|
Chile
|
USA
|
|---|---|---|
|
Technology and Data
|
$26k - 42k
|
$80k - 100k
|
|
Marketing and Sales
|
$14k - 49k
|
$50k - 100k
|
|
Finance and Accounting
|
$11k - 54k
|
$70k - 100k
|
|
Human Resources
|
$8k - 17k
|
$35k - 70k
|
How to Pay Talent in Chile
Paying remote employees in Chile as a U.S. company involves navigating fluctuating exchange rates, Chile’s banking system, and adhering to both countries’ regulations. Understanding how to pay employees is crucial for compliance:
Bank transfers
A direct and simple payment method to any personal bank account, but it may involve high fees and longer processing times.
PayPal
PayPal offers fast and secure transactions internationally, but it may have relatively high fees and unfavorable exchange rates.
Payoneer
With their financial service platform, Payoneer provides online money transfer and digital payment services, often used for freelancer and contractor payments.
Global payroll providers
Cryptocurrencies
Bitcoin or Ethereum offer decentralization and potentially lower fees, but their volatility and regulatory concerns may not suit all employees.
Wise
Wise offers cheaper international money transfers compared to traditional banks by using real exchange rates and low fees.
Start hiring remote Chilean talent with Lupa
Hiring Chilean employees can diversify your team and boost your Latin American operations. However, cultural knowledge is critical to successfully navigating the hiring process in Chile. At Lupa, we excel in aiding U.S. companies hiring remote talent in Chile, to swiftly recruit, interview, and onboard remote talent throughout Latin America, including Chile, without any complications or risks.
Our team of experienced recruiters has a deep understanding of the unique requirements of remote contractors and the vast talent pool in Latin America. Using an automated approach and our expansive talent network, we ensure that you find the best fit for your needs in tech, finance, marketing, or other sectors.
For further guidance on compliant hiring practices in Chile, read our related articles or schedule a consultation with our experts for personalized assistance.
