Chile Expat Forum

Socium
Joined 2014
Posts: 90

9 years ago

Employment for foreigners in Chile

9 years ago

I had been asked this question for foreigners not coming to do a business in Chile.

1. You can work as employee or under retainer fee on any business in Chile.

2. For Chilean labor law, if you work ONLY for a company and you receive orders from them, then you are working as employee. It means you must sign a labor contract and get paid social security by the company hiring you. This is the normal situation for every worker in Chile. So, if those two conditions apply, you CAN NOT work under a Retainer, or Independent professional or independent contractor, issuing a Honorary Receipt for your services.

3. WORKING AS EMPLOYEE.

a) You need a labor contract issued by a Chilean company. It MUST include a clause on which the hiring company pays you back the ticket from where you come or to a nearby foreign country.

b) With this contract you apply to get a Labor Visa.

c) While this labor visa is on the process ( around 3 months) you can work with a Provisory Labor Permit. Depending on your nationality it is the cost of this permit, with it is about the same cost that Chileans pay if working in your home country.

d) You can ONLY work for the company hiring you as the Labor Visa is tied to the contract you obtain. If you do otherwise, you can be expelled from the country. If you find a better opportunity, you always can change your labor Visa. It is not as complicated if you make the proper consultation in advance.

e) You always agree in Chile for a gross wage, from where the company deducts approximately 20% for your pension fund and health insurance. If you already have those two services in your home country and can be proved, then at least you could omit the deduction for pension fund. But pay attention to the agreement you are told by the company. Are they offering you SUELDO LIQUIDO ( clear wage) or SUELDO BRUTO ( gross salary form which the mandatory deductions are made).

f) If you have to pay the pension fund, it is possible to arrange the devolution of these funds paid while in Chile, after you finish your stay as employee in the country.

g) Above the before said deductions, there is the general labor tax that will be charged on you. The 20% deduction for social security from your gross wage, its a rough number, because it has a limit. if you earn a very high salary, the obligatory deductions are fixed. However your income tax may grow. The maximum rate is 40% on labor tax. It needs more time to explain this on this forum.

4. WORKING ON RETAINER

it is possible, but I have to run now, to explain this.

Hope the above said may help.

More in depth professional consultations to

[email protected]

http://chilebusinessopportunities.blogspot.com/

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