After company formation in Chile, you will need to find employees. With its highly educated labor force, stable political institutions, and growing economy, it’s no surprise that hiring trends in Chile focus on high-skill positions – with increasing numbers of foreign investors looking to start a business in the South American country. the following article offers an overview of the market, advice on the key sectors to investigate and guidance on what to expect and how local experts can help you.
Key takeaways
| Key positions in Chile | Tech developers Programmers Cybersecurity Engineers Marketing Business Administration |
| Steps to hiring in Chile | A local advisor can help you with: Job adverts Networking CV assessment Interviewing Contract writing Onboarding |
| Legality of PEO in Chile | Yes, hiring through a PEO in Chile is legal. It ensures compliance with labor laws and simplifies employment without needing a local entity. |
| Minimum wage in Chile | The minimum wage in Chile is CLP$510,500 (aprox USD$515) as of January 2025 |
| Employer contributions in Chile | 5.7% must be paid of an employee’s gross salary. |
What sectors are best for hiring in Chile?
The Chilean economy has long been based on primary resource extraction, with copper functioning as the bedrock. However, the country is looking to diversify and move away from dependence on a single resource, with lithium targeted as a particularly interesting opportunity. The years of development in the field means that Chilean engineers are particularly highly skilled, experienced and thus sought after.
Tech, too, is an area of intensive growth in Chile, with a strong startup culture and rapid investment in the infrastructure necessary to grow the sector. All that copper means that fibre optic cables are easy to install, after all. A strong university system that leads the region helps produce thousands of IT graduates yearly, as well as a support network of administrators, lawyers and others.
This means there are literally thousands of highly qualified and skilled IT professionals in the country, resulting in a competitive market for positions. While the local tech scene is growing fast, it simply can’t provide as many jobs as there are workers, making it an employer’s market. Cybersecurity in particular is projected to grow rapidly up to the end of the decade.
What factors are contributing to growth in hiring trends in Chile?
Below are some of the key factors that are contributing to growth in hiring trends in Chile:
- Highly educated labor force
- High proficiency in English
- Rich in natural resources
- Stable political system/society
- Robust capital investment in tech startups
1. Highly educated labor force
Large and sustained investments in education in Chile over the past decade have paid off. Chile boasts a large and well-educated labor force, and the hiring trends in Chile demonstrate this. There’s no shortage of tech/IT professionals, engineers, business administrators, and legal and marketing professionals in the Latin American country.
2. High proficiency in English
The hiring trends in Chile have also been influenced by the many people there who possess some English proficiency. This is particularly true among young urban professionals. Only Argentina and Costa Rica rank higher than Chile in terms of English speakers in the region.
3. Rich in natural resources
The Chilean government is staking the future on mining and renewable energies such as green hydrogen. Regarding hiring trends in Chile, engineers – especially those in the mining industry – represent the second most in-demand job in the country. Only programmers and IT professionals are in higher demand.
4. Stable economy, political institutions, society
Chile is a safe bet for foreign investors regarding social, economic, and political stability. While there have been violent and prolonged street protests in past years, Chile has since stabilized since the last presidential election. There is little risk in investing or domiciling in the country, and it’s quite possibly the safest nation in Latin America. Little wonder then that the figures surrounding hiring trends in Chile remain strong.
5. Robust capital investment in tech startups
Chile is moving forward with laying the foundation for a 5G network. While low growth and high inflation remain a problem in the region, Chilean startups in the country have been weathering the storm. Capital flows to the nation’s tech startups continue to grow, with some even achieving unicorn status. Expanding the 5G network will boost the tech startup environment in Chile.
How much it costs to hire people in Chile
The cost of hiring in Chile is less than it would be in richer nations, yet workers are often well qualified and skilled. With significant investment in education over a number of years, the Chile now has a surfeit of graduates in the labor market that it cannot provide local jobs for. This means that the labor market in Chile is relatively competitive for an incoming prospective employer.
The minimum wage in Chile is CLP$510,500 (aprox USD$515). However, this is not necessarily the rate that you should be offering. In top sectors that require qualified and skilled workers, you will need to offer at least market standard rate. A local hiring expert in Chile will be invaluable in making sure that you are not overpaying or offering unattractive rates that make it hard to recruit quality talent.
Employers in Chile must make social security contributions equal to 5.7% of an employee’s wage. The employer must withhold tax at a rate of 18.6% of an employee’s remuneration, including contributions to pension funds and healthcare.
Two options for hiring: establish a company or PEO
When entering the market and hiring in Chile, there are essentially two options available to investors and entrepreneurs. The most common way of doing so is through full company formation to establish a presence in the jurisdiction. However, this may take time and effort, meaning that it is worth considering another option as well, using a Professional Employer Organization (PEO).
PEO: fast and agile
A Professional Employer Organization (PEO), also known as a ‘Registered Employer’ or ‘Employer of Record’, is an organization that provides and supports companies with their human resources functions, from the early stages of recruitment to the payment of taxes and benefits. PEOs undertake the fundamental and time-consuming tasks of human resources teams, allowing companies to focus on the growth and success of their business.
The services of a PEO are particularly useful when businesses seek to hire a local workforce but do not wish to establish a local legal entity. Simply put, a PEO makes it easy to hire staff in Chile through an outsourced provider. It means you can enter the market and start hiring quickly, without having to commit to full entry until you are sure that it is what you want to do. It is worth noting that regionally there is beginning to be more regulation and PEO in Chile may not be viable in the future.
The long-term option: direct hiring
This is the gold standard of hiring in Chile, as it will give you full control over your employees as well as being sure that you will be compliant for the long term. It also gives you a higher status with potential job applicants, who will see you as a more secure long-term employer.
Before you start hiring employees in Chile, you will first need to get a sense of the legal, financial and cultural lay of the land. Things such as how to sort out the red tape associated with incorporation and how to manage payroll, for example. With a permanent legal presence in Chile, you will be fully liable for compliance with local law.
A local expert will help when hiring in Chile, as they will have an extensive network of qualified professionals for top jobs as well as a good idea of the local labor market. They will be able to advise on the best rates to offer and what type of profile you should be targeting. With anti-discrimination legislation important in Chile, especially for top jobs, they can make sure you are making a fair offer which complies with local law.
After placing adverts and receiving applications, you will want to move towards interviewing potential candidates. This should be done by both a team manager and HR representative at minimum, to make sure that everything is watertight in legal terms. You may want to include other people into the process in order to make a better assessment of the candidate.
It is entirely possible that you may wish to have a second interview, possibly involving other team members as discussed above. It is also common in the region and when hiring in Chile to provide candidates with an aptitude task to be completed. This usually takes the form of a dummy task that simulates the type of job that will be done in the future and confirm that they possess the skills cited on their CV.
Contracts, too, will be important. A local advisor will be up to speed on what you can and cannot offer. Bear in mind that you will have to follow all the rules established by Chile. This is particulary relevant for fixed-term or project-based contracts that will require well-defined conditions for the satisfactory termination of the contract.
Finally, your local advisor will be able to help you with the stages of both the hiring and onboarding process. They will make sure that you comply with standard requirements such as compulsory medical checks. It should be noted that probationary periods do not exist in Chile and temporary contracts are often used for the first year of employment in a similar way.
Labor laws and regulations in Chile
Before making a move into the jurisdiction, it’s important for companies to understand the labor rights and responsibilities of both employers and employees in Chile. What follows are a few things that foreign business owners should know about when it comes to the local work culture:
- Work hours – The standard workday in Chile is eight hours, with the standard workweek up to 44 hours (reducing to 42 in 2026).
- Public holidays – There are 16 public holidays in Chile each year plus regional events.
- Vacation time – Workers in Chile are eligible for 15 days of vacation annually. Women are entitled to 12 weeks’ maternity leave.
- Contract types – There are essentially three types of contract in Chile, indefinite employment, fixed-term employment and project-based work.
FAQs on hiring trends in Chile
Based on our extensive experience these are the common questions we receive from clients when looking to hire in Chile.
1. Why hire talent in Chile?
Hiring in Chile offers access to a large talent pool that is located in the same time zone as the North American market, is culturally similar, and is more economical. The combination allows a company to complement an existing North American based team or to establish an independent nearshoring center within the region.
2. Can I hire top talent in Chile?
Yes, you can hire top talent in Chile, often at more competitive prices than in your local market.
3. What is the level of English for professionals in Chile?
The level of English in Chile is generally good by regional standards. University graduates are expected to complete English language proficiency to at least an intermediate level.
4. How many tech professionals are there in Chile?
Despite a small population by regional standards at only 20 million, Chile boasts around 120,000 trained tech developers and other professionals.
Biz Latin Hub can help you with hiring in Chile
At Biz Latin Hub, we offer a comprehensive range of market entry and back-office solutions across Latin America and the Caribbean.
With offices in key cities across the region, along with trusted partners in other markets, our extensive reach makes us well-suited to support cross-border operations and multi-jurisdiction market entries.
As well as knowledge about hiring in Chile, our portfolio of services includes hiring & PEO accounting & taxation, company formation, bank account opening, and corporate legal services.
Contact us today to find out more about how we can assist you in finding top talent or otherwise doing business in Latin America and the Caribbean.
If this article on tips for hiring in Chile was of interest to you, check out the rest of our coverage of the region. Or read about our team and expert authors.
