COUNTRY GUIDE
A short guide to building a dedicated offshore team in Chile
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Santiago
Spanish
19.6 million
(GMT-4)
120,000+
Chilean Peso (CLP)
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$1.53 billion
$2 billion
Santiago
Spanish
19.6 million
(GMT-4)
120,000+
Chilean Peso (CLP)
$1.53 billion
$2 billion
Thanks to a growing talent pool, economic stability, and government initiatives like Start-Up Chile, Chile has become one of the most attractive destinations for outsourcing tech teams in Latin America. Companies like Amazon Web Services, Microsoft, and Google have already recognized the country's strategic importance in the region. They have established a strong presence in Chile and are actively hiring for various tech roles.
Another factor that makes Chile an attractive location for tech hiring is that Chile’s time zone closely aligns with the U.S. East Coast. This alignment contributes to efficient real-time collaboration with North American companies.
Chile’s IT sector stands out as one of the most promising in the region, with significant growth potential. Technavio projects that the IT market in Chile will grow by $3.9 billion by 2027, with an annual growth rate of 8.55%.
Payroll Cycle
In Chile, employees get paid monthly. The employment contracts define the payment schedule. Salary calculations are done monthly, and payments are typically made at the end of each month. There are no mandatory mid-month advances, but some companies may offer them as a benefit, usually around the 15th of the month, without withholding taxes. According to Chilean law, the payroll cycle is typically monthly, with employees receiving their full salary once per month.
Termination pay must be settled within the legal timeframe, generally ten days after the termination date.
Employer Taxes
The country has a progressive tax rate system, where employers must contribute from 0% to 40% of each Chile software developer salary to cover their obligations. Plus, when you hire developers in Chile, you are typically responsible for withholding a social security tax (17.6%), even though employees bear most of the contributions. They include contributions to pension funds (AFP) and health insurance (Isapre or Fonasa).
Overtime Pay
In Chile, any work exceeding the standard 40 hours per week qualifies as overtime, which must be regulated by the employment contract or collective agreements. The maximum daily limit for overtime is generally set at 2 hours, and it is compensated at a rate of 150% of the regular salary.
Employees who work on a holiday are entitled to compensation of up to 200% of their standard pay, reflecting the premium for working during official rest days.
Paid Leave
In Chile, paid leave is also specified in the employment contract, ensuring a minimum of 15 working days of paid vacation per year. They are typically granted after one year of service, in addition to public holidays.
The calculation for this leave is based on the employee's regular monthly salary. Employers must disburse the payment for the vacation period before the leave begins, ensuring employees receive their full pay in advance.
While the standard vacation period is continuous, there is an option to split the paid leave. Employees can divide their vacation into different segments as long as one lasts at least ten consecutive days.
Sick Leave
In Chile, every employee is entitled to paid sick leave, provided they submit a medical certificate within 48 hours from the onset of illness.
The employer is not obligated to cover the payment for the first three days of sick leave. However, from the fourth day onwards, compensation is provided at a rate equivalent to 100% of the standard salary, and the payment is made through the health insurance system (Isapre or Fonasa). Unlike in some other countries, the compensation is not capped but continues at the employee's regular salary rate as long as the medical leave is certified.
Public and Provincial Holidays
There are 15 official holidays in Chile.
Notice Period
In Chile, the minimum required notice period under statutory regulations is 30 days, although employment contracts or collective agreements may specify more extended notice periods. Employers also have the option to provide compensation instead of notice, equivalent to the employee's monthly salary for the notice period.
No notice period is required if an employee is terminated with cause, such as for serious misconduct. In cases where termination occurs through mutual agreement, the notice period may be adjusted if both parties agree.
During the notice period, employees have the right to a reduced work schedule, allowing them to either shorten their daily hours or take additional leave days while still receiving their full salary. This benefit typically applies if the employee has been with the company for at least one year.
13th Month Bonus
In Chile, employees are entitled to a mandatory "Aguinaldo" or Christmas bonus at the end of the year. However, this benefit is not strictly regulated by law and may vary depending on company policy or collective agreements.
The Aguinaldo is typically provided to employees who have completed a full 12 months of service, with the amount varying based on the company's discretion or agreed-upon terms. Employees who have worked for only part of the year may receive a proportionate amount.
The Aguinaldo in Chile is generally paid as a lump sum in December and is subject to the usual taxation and social security contributions.
Setting up a business venture in Chile involves various administrative and legal challenges. This is why many tech businesses partner with outsourcing companies that effectively take over the burden of hiring new employees in the country.
Outstaffing companies help tech businesses looking to outsource the administrative and legal aspects of hiring offshore employees. They can be highly effective in sourcing and hiring top employees as well as handling payroll, tax, HR, and compliance requirements on behalf of the business. As a result, IT companies can focus on business growth rather than spending time figuring out Chilean labor law.
ALLSTARSIT is among the leading companies with a 20-year track record in sourcing and hiring tech professionals worldwide. Our services include staff augmentation, dedicated team hiring, employer-of-record solutions, and more, all tailored individually to the specific needs of our clients.
Looking to expand your tech team with skilled professionals in Chile? Contact us, and we’ll help you hire software developers in Chile for your business needs.
Choose the right expert professionals required for your specific project, saving time and wasted effort.
This service enables software development companies worldwide to meet any technical needs outside their core skill set by adding specialized staff on demand while retaining control of the project's specifications and scope.
Establish R&D / Tech Support / QA & Testing / DevOps / Data Entry Centers in your chosen location.
Forget about investing in facilities, equipment, technology, or human resources. We manage all necessary operations as your specialist. This can help you save money and resources, all while reducing frustration and simplifying internal processes.
Use ALLSTARSIT as your EOR / CM to easily hire employees in new countries without setting up a legal entity.
We act as the employer for your new hire, handling all HR, payroll, tax, and compliance requirements on your behalf, while you maintain control of their workload.
Effortlessly Access Expert Tech Support for Your Projects
Our Tech Support service provides companies worldwide with access to the best technical experts tailored to their specific project needs. Whether you require troubleshooting, maintenance, or specialized assistance, we ensure that you have the right professionals on hand to support your endeavors effectively.
Maximize Your Customer Satisfaction Level with Our Customer Support Service
Access tailored customer care solutions for your business needs. Our expert team is dedicated to addressing inquiries, resolving issues, and delivering personalized assistance. Say goodbye to challenges and hello to exceptional customer care with us.
Here are the key points to keep in mind if you are planning to hire software developers in Chile:
ALLSTARSIT ensures the best quality of expertise when sourcing dedicated teams in Chile to suit your business objectives.
Finding a dedicated developer in Chile is relatively easy. The country has a robust educational system that produces a steady stream of 13,000 highly skilled developers each year, many of whom are in high demand in the labor market. Additionally, Chile software developers often have a good command of English, enabling effective communication in business settings.
Outsourcing dedicated team development in Chile offers a strategic advantage for your business. With the high quality of software development in the country, you can enhance your business operations and achieve a higher level of performance.
Chile's dedicated developers operate under a well-established legal framework that adheres to current standard regulations. All professionals work in compliance with local laws, and the country highly supports foreign business investment. Any dedicated project team in Chile outsources their work in full accordance with legal requirements.
If you're planning to hire software developers in Chile or set up a dedicated engineering team there, you'll need to determine the optimal location, select skilled personnel, and carefully assess the legal and regulatory aspects specific to the region. For a reliable and talented dedicated developer team from Chile, contact ALLSTARSIT to streamline the process and ensure success.
When hiring a dedicated team in Chile, it's crucial to implement effective recruiting strategies to maximize your business outcomes. Establishing common interests and clear communication channels with your software development team in Chile is critical to ensuring the success of your projects.
Challenges like language barriers, time zone differences, and workflow efficiency might arise when working with a dedicated development team in Chile. However, we are committed to making the outsourcing process with your Chilean offshore team as smooth and comfortable as possible, ensuring seamless collaboration throughout the project.
We leverage the latest trends in outsourcing dedicated developers in Chile, ensuring we identify and secure the best Chilean development teams to meet your business needs. By staying at the forefront of industry practices, we provide top-tier talent and effective
We employ the best practices to attract and hire software developers in Chile. Our ultimate goal is to ensure that your business benefits from top-quality talent and modern technological solutions.
ALLSTARSIT is your trusted partner in outsourcing dedicated development from Chile. We are here to assist you in assembling and hiring a dedicated software development team that can effectively meet your business needs.
Contact us, and we’ll help you hire the best tech talent in Chile.
