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If you are interested in hiring a remote team in Chile, or even just individual remote employees in Chile, then you have come to the right place!
Rivermate is an Employer of Record (EOR) that offers Chile payroll solutions. As a Chile payroll provider, we will cover everything from salary, benefits, employer-to-employee contributions, and especially payroll compliance in Chile. We are confident Rivermate’s payroll solutions Chile will help you grow as a business—because now, you won’t have to worry about your payroll solutions Chile. We take care of everything payroll!
With Rivermate, you can run Chile payroll services in just one click—regardless of currency, benefits, insurance, and your local labor laws. Everything is automated. Our priority is for you to focus on your company’s strategy and growth.
Our Rivermate Global Payroll services are made especially for startups and scaleups. We know that startups try to be extra prudent when it comes to choosing a payroll provider, so it is our mission at Rivermate to be your most reliable and cheapest payroll provider option. So if you’re looking for global payroll providers for small businesses, look no further and book a call with us now!
A subsidiary must be established before you can hire employees or set up payroll. Your subsidiary must be registered with the Registro Publico de Comercio and Servicio de Impuestos Internos. It may take between 15 and 20 days to complete. Then, with official paperwork and documentation, you'll need to open a bank account. This stage of the process can take up to four weeks.
Because most social security costs are withheld from employees rather than employers, taxes in Chile are reasonable. Employees must contribute 10% of their earnings to a pension fund, 7% to a health insurance plan, 2.84 to 3.4% to a life insurance plan, and 0.6% to an unemployment insurance plan.
Employers, on the other hand, contribute to work-related accidents and illnesses, as well as the unemployment insurance plan. This amounts to 0.9% to 4.4% of your payroll, depending on your industry. An additional 2.4% is earmarked for an unemployment fund. You must also register all new employees with tax authorities within 60 days of hiring them.
Companies that wish to expand their operations globally have four different payroll options in Chile. These payroll options are:
1. Internal Payroll. This payroll option is applicable for already established companies in Chile. It includes devoting an entire Human Resources staff to running the company's payroll procedures.
2. Remote Payroll. Smaller firms may lack the capacity to handle their own payroll, but they may add their workers to the parent company's payroll. This action, on the other hand, requires considerable thinking. You must guarantee that you follow the rules and laws of each nation.
Working with a local outsourcing firm is one method to retain money in the local economy, but you'll still need to study all of the local rules and regulations, since you'll be held responsible.
3. Chile payroll outsourcing: Outsourcing your payroll to an Employer of Record in Chile, such as Rivermate, is another alternative for Andorra payroll outsourcing. We can manage all aspects of your payroll, including compliance. Send us a note and we'll get back to you as soon as possible!
Payroll management in Chile, such as the one provided by Rivermate, assists businesses in managing their employees' financial records and adhering to mandatory payroll and labor laws. Earnings, gross income, net income, tax deductions, incentives, pensions, insurance policies, and payslip generation are all revealed by employee financial records.
A high-quality payroll management system will ensure that employees are paid on time and will reflect positively on the financial stability of your company. It will not allow for legal ambiguity. Effective payroll management in Chile will boost your company's morale.
Payroll compliance in Chile is a legal framework used by the government to regulate the operations of private businesses. This framework is made up of many moving parts, including social security, employee salaries, benefits, and taxes. Employees in Chile contribute to social security for pensions, healthcare, worker illnesses and accidents, and unemployment.
Employees working 45 hours per week, for example, must be paid at least 350,000 Chilean pesos ($) per month if they are between the ages of 18 and 65. One Chilean peso is equal to 0.0012 of a US dollar.
Employees are entitled to benefits such as paid vacation, annual, prenatal, and postnatal leave. Furthermore, in Chile, tax brackets range from exemption to 35%.
Overall, payroll compliance in Chile entails a slew of factors. It can be very exhausting to achieve. Hiring payroll professionals will make the process far less stressful.
Companies that have a business presence in Chile have different ways of managing payroll. However, most of the options you have for running payroll in Chile are either expensive or require establishing a subsidiary in Chile. The cheapest, most efficient, and most reliable payroll processing system in Chile is by outsourcing payroll to Employers of Record (EOR) in Chile. Rivermate is one of those Employers of Record.
At Rivermate, we offer you the most efficient, most compliant, and cheapest HR and Payroll Management services in Chile. We do this by taking care of your payroll-related needs, such as keeping track of your employees’ financial records, including incentives, gross and net salary, and payslips, all the while staying compliant with the labor laws in Chile. Because we do your online payroll management for you, you can have absolute focus on your business’ strategy and growth.
Rivermate is all about growth through collaboration and we achieve this by offering the most reliable yet cheapest services for managing payroll for small businesses in Chile.
To fire an employee, the reason for termination must first be determined. According to the legislation, the following reasons for termination are valid: mutual consent, resignation, or contract expiration, breach of contract (employer must be able to demonstrate), or the company's necessity for restructuring (the most common reason for the dismissal of an employee).
The employer must write a letter to the employee explaining the reason for termination and the effective date, which must be signed in person or delivered certified mail to the employee's home address. Additionally, the identical letter must be filed with Chile's Ministry of Labor. It is customary for employees to be told on their final day of employment.
Following the termination letter, the employer must draft a severance agreement that details the reason for the termination and the amount to be paid to the employee. Within ten days of termination, the severance agreement must be executed.
In the event of a mutual agreement, both parties must sign a document stating that they have decided to end the employment contract. Additionally, during the first 1-2 weeks following the termination date, a severance agreement must be signed.
Chile's minimum monthly wage is 320,500 Chilean pesos (as of 2020). This equates to approximately $460 at the moment. Employers are encouraged to evaluate an employee's performance annually and to compensate them appropriately. While Chile does not require a 13th month bonus, any bonuses agreed upon must be paid in local currency.
The standard workweek is 45 hours, with a maximum of ten hours per day. The employer may extend the day by no more than two hours per day or the week by no more than ten hours per week. Employees aged 15 to 18 may work no more than eight hours per day.
Night work is compensated at 50% of the standard rate. Employees who are under the age of 18 or who are pregnant are not permitted to work at night.
Between workdays, employees are entitled to 11 hours of rest and are not permitted to work on Sundays (with certain exceptions depending on the sector, such as retail for example). Each employee is entitled to one rest day per week.
Employees must contribute to a private health insurance plan known as "Isapres," for which the employer is required to withhold up to a monthly cap of about USD 214 pre-tax. Any additional money supplied for health insurance is considered supplemental and is deducted from the employee's net pay after taxes. The employer might choose whether or not to reward the employee for the difference with a taxable bonus.
In some situations, employers may decide to provide a benefit equivalent to two years' pay in the form of life insurance. This may be the best option to provide this benefit if your organization has worldwide umbrella coverage that can be extended to international coworkers.
Car allowances are uncommon in Chile, except for executive positions and staff who are forced to utilize their personal vehicles for business purposes. Employees cannot be given with company cars without incurring a substantial tax penalty.
Another approach to provide tax-advantaged remuneration to employees who commute to work is to provide a monthly commuting allowance subject to specific limits based on gross wage.