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7. Labor and employment: Chile

Labor and employment in Chile: how to hire under the Código del Trabajo, the 42 hour week stepping to 40, the minimum wage and legal profit share, employee and employer social security contributions including the phased employer pension contribution of the 2025 reform, dismissal, notice and severance, outsourcing liability, unions and strikes, each tied to the official text.

Investor view. Chile offers a codified, predictable labor regime with capped severance and an individual account pension system, and its rising employer contributions and shorter week are phased in by law, so investors can price labor cost years ahead.

Employing people in Chile: contracts, working hours, minimum wage, social security, dismissal and severance, unions and outsourcingEvery employee in Chile needs a written contract within 15 days of starting, the maximum ordinary week is 42 hours since 26 April 2026 and falls to 40 hours on 26 April 2028, and the minimum monthly w