Hire in Chile

Employer of Record (EOR) in Chile is rapidly becoming the preferred route for international firms that want to access Chile’s highly educated workforce without the overhead and delay of setting up a legal entity. Chile offers a stable economy, strong regulatory framework, and skilled talent pool — but also demands strict adherence to employment, tax and labour laws. At Toku we act as your local employment engine:

We become the legal employer in Chile on your behalf, handling contracts, payroll, benefits and compliance, while you retain full control of the employee’s day-to-day tasks. Whether you're hiring in Santiago or remotely across Chile’s regions, Toku lets you move fast, scale smart and employ with confidence.

What Is an Employer of Record (EOR) and How Does It Work in Chile?

Define the EOR model

An Employer of Record (EOR) is a service provider that legally hires employees in a target country — in this case Chile — on behalf of your business. The EOR handles all the formal employer responsibilities under local law: preparing the employment contract, registering with the local authorities, managing payroll, withholding social security and taxes, enrolling statutory benefits, and managing terminations in compliance with local rules. Your business continues to direct and manage the individual’s work, set their KPIs and integrate them into your organisation, but you avoid the time, cost and risk of establishing a full-scale legal entity in Chile.

Compare EOR vs. local entity vs. contractors

Here is how the three primary hiring models compare for Chile:

By choosing an EOR, you gain fast access to the Chile market, avoid the burden of setting up your own entity, and benefit from a provider who understands Chilean employment law and compliance nuances.

How EOR works in Chile

In Chile you partner with Toku as your EOR: we execute a written employment contract in Spanish, register the employee with relevant authorities, ensure salary payments in Chilean Peso (CLP), deduct and remit required social security and tax contributions, handle statutory benefits such as paid leave, and manage termination obligations. Meanwhile your company supervises day-to-day activities, performance and integrates the employee into your team. Toku handles the formal legal employer duties, allowing you to operate without a local entity and still stay fully compliant.

How to Use Toku to Hire in Chile Without a Local Entity

What 5 Steps Help You Onboard Faster With Toku?

1. Select or recruit your Chile-based candidate – you identify the talent, either remote or in Chile, and define role, salary, start date.
2. Engage Toku and submit hire details – you supply candidate info (name, Chile ID or equivalent, bank account, role, compensation) and Toku prepares the employment contract.
3. Toku handles contracts & registrations – we prepare a Chile-law compliant employment contract (in Spanish), register with Chilean social security and tax authorities, set up payroll and statutory benefits.
4. Onboard the employee and activate payroll – we manage the onboarding tasks (benefit enrolments, system access, local orientation) and execute the first payroll in CLP.
5. Ongoing employment management & support – Toku handles monthly payroll runs, social security and tax filings, benefit delivery (paid leave, vacation, etc.), termination processes if required, and provides your company with reports.

How Does Toku Handle Local Compliance in Chile?

Chile’s labour and tax regulations are detailed and must be adhered to precisely. Toku’s compliance service covers:

• Providing employment contracts in Spanish that meet Chile labour code requirements (salary, working hours, benefits, termination notice)
• Withholding and remitting Chilean social contributions and income tax from employee wages
• Ensuring employer obligations are fulfilled: contribution to unemployment insurance, accident insurance, pension fund contributions, health contributions, any statutory bonus or vacation entitlements
• Managing payroll in CLP, payslips and local filings
• Monitoring Chile-specific employment law changes (working hours limits, overtime, remote work regulation, termination rules) and updating your contracts/service accordingly
• Offering bilingual support (English & Spanish) for your global HR and your Chile employees

6 Benefits of Using an EOR in Chile With Toku

Enter the Chile market in days instead of months

With Toku as your EOR you bypass entity formation, local banking, corporate tax registrations and can onboard employees in Chile in days or a few weeks — enabling fast go-to-market.

Avoid setting up a costly Chilean legal entity

Forming a Chile entity comes with legal fees, local directors, ongoing accounting and tax obligations. EOR lets you access Chile talent without that overhead.

Fully compliant local payroll and benefits management

Toku takes care of Chile-specific payroll, benefits and compliance, so your internal team stays focused on growth rather than administrative burden.

Bilingual, local-market HR support and operational continuity

You benefit from Chile-based support teams who speak English and Spanish, understand the local labour culture and ensure the employee experience is seamless.

Transparent, predictable pricing and global scaling capability

Our pricing model is straightforward for Chile hires: monthly fee + salary cost, no hidden entity-setup costs. And when you expand to other countries, the same platform scales.

Minimise employment risk and misclassification exposure

Chile labour laws impose strict obligations on employers (contract types, termination rules, benefits). Toku as your EOR assumes much of the employer liability, reducing your risk of fines, back pay or legal disputes.

What 7 Employment Law Highlights Should Global Teams Know About Chile?

Here’s a high-level overview of the most important employment law elements you need to understand when hiring in Chile.

Below is a table summarising key employment-law items for Chile:

Understanding these highlights — and working with an EOR that knows them intimately — allows you to hire confidently in Chile.

How Does Payroll, Taxes, and Compliance Work in Chile With Toku?

Payroll, taxes and compliance in Chile are multifaceted — you must manage employer and employee contributions, benefit entitlements and local filings. Below is a simplified table of core cost lines for a Chile employee.

How Toku handles this for you:

• Toku calculates gross-to-net salary in Chilean Peso (CLP), applies relevant deductions and employer contributions, issues monthly payslips in Spanish.
• Toku submits the relevant remittances and filings for social security, pensions, health, unemployment insurance, workplace‐accident insurance.
• Toku ensures statutory benefits (such as the legal bonus and paid leave) are accounted for in cost and paid correctly.
• Toku monitors changes in Chilean tax and employment law, updating our payroll engine and informing you of any material shifts in cost or liability.
• With Toku you benefit from one single invoice for your Chile employees each month and full reporting, so your internal finance team doesn’t need to handle multiple vendors or local tax filings.

Why Choose Toku vs Other EOR Providers in Chile?

When you evaluate EOR in Chile, it’s important to pick a partner with deep local presence, proven compliance and global scale. Here’s why Toku stands out:

• We own or operate through a locally-registered entity in Chile (not merely a third-party reseller), giving you stronger compliance coverage.
• Bilingual (English & Spanish) support teams based in Chile, ensuring cultural fit, local HR responsiveness and smooth employee experience.
• Transparent global pricing model: no hidden entity formation cost, no surprise add-ons — predictable cost for your finance team.
• Fast onboarding process: streamlined workflows allow Chile hires to be live in as little as one to two weeks.
• Full global platform: hire in Chile now, and easily extend into other countries later using the same Toku infrastructure.
• Compliance guarantee: we stand behind our service and assume employment-liability in Chile where permitted.
• Data-security and global standard protections: we adhere to international norms for payroll, privacy and export of data, aligning with Chilean data requirements.

How Fast Can You Hire in Chile With Toku?

With Toku as your EOR partner in Chile you can typically onboard a new Chile-based employee within 7-14 business days, given timely submission of all candidate information, contract approval and bank details. This timeline compares very favourably to setting up your own Chile entity, which can take several weeks or months. The speed allows you to move from candidate offer to productive work in Chile rapidly, giving you a competitive advantage in hiring.

Ready to Hire in Chile With Toku? Get a Quote

If you’re ready to access Chile’s talent pool without the hassle of entity setup, let’s talk. Request a custom quote suited to your headcount and compensation structure. With Toku’s EOR in Chile, you’ll be ready to hire fast, remain fully compliant and scale your global team with confidence.

What’s the Smartest Next Step to Scale in Chile With EOR?

Expanding into Chile is not just about one hire — it’s about unlocking a strategically important talent market and building a forward-thinking team. The smartest next step is to partner with a provider who handles the legal, tax and HR complexity so you can stay focused on growth.

With Toku, you gain a partner that has deep Chile expertise and a platform that scales globally. You avoid entity-formation delays, circumvent local regulatory risks and start hiring qualified Chile professionals quickly. Whether you’re hiring a full-time developer in Santiago, a remote marketing specialist across Chile’s regions, or building an entire team, Toku offers you the operational infrastructure and compliance assurance to make it happen.

By choosing the EOR route now, you free your internal resources to focus on recruitment, culture integration and performance rather than entity setup or compliance headaches. Your candidates join your team as your employees from day one, you’re compliant from day one, and you get to capture the opportunity of the Chile market without unnecessary delay.

Let’s make your next hire in Chile a seamless, compliant success — with Toku as your trusted EOR partner. Book your demo or quote today and turn Chile’s talent into one of your most strategic assets.

FAQ about EOR in Chile

What is an employer of record in Chile?

An employer of record in Chile is a provider that becomes the legal employer of a Chile-based employee on behalf of your company, handling employment contracts, payroll, taxes, benefits and compliance, while you manage the employee’s work.

Can I hire in Chile without setting up a local entity?

Yes. Using an EOR in Chile allows you to hire employees without establishing your own local legal entity. The EOR holds legal employer status in Chile and handles compliance on your behalf.

How much does it cost to use an EOR in Chile?

Costs vary by headcount, salary level and services, but an EOR typically charges a fixed monthly fee per employee plus the salary cost. It is generally more cost-effective and faster than building your own legal entity.

What happens if I misclassify a contractor in Chile?

Misclassifying a worker as an independent contractor when they should be an employee in Chile can lead to back-pay of benefits, fines, social security liabilities and legal exposure. An EOR helps mitigate this risk by ensuring correct classification and compliance.

What are the key employer social contributions in Chile?

In Chile employers must contribute to unemployment/accident insurance, with employer contribution rates varying by industry risk level; they must also withhold employee pension contributions (~10%), health insurance contributions (~7%) and other mandatory levies.

How does termination work for Chilean employees?

Termination in Chile typically requires either one month’s notice or payment in lieu, and may trigger severance obligations (approximately one month’s salary per year of service up to a set cap). Correct process and documentation are critical.

Can I convert a contractor to an employee via an EOR in Chile?

Yes. Using an EOR you can offer a Chile-based worker a full-time employment contract under Chile law — the EOR handles the employment contract, payroll and benefits. This is a low-risk way to change a relationship from contractor to employee in Chile.