Chile Compliance Hub: Employment, Payroll & Tax Guide
Key Law Terms Overview in Chile
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Regulation Updates in Chile
Discover the latest employment and compliance updates in Chile — helping you stay ahead in a changing regulatory landscape.
Adjusts the amount of the monthly minimum income, as well as the family and maternal allowance and the family subsidy
What it is: The policy update adjusts the amount of the monthly minimum income and updates related family and maternal allowances and the family subsidy, with the measure submitted to the Chamber of Deputies for consideration.
What it changes: It proposes an increase to the statutory minimum wage and updates to family and maternal allowances, creating new employer obligations for minimum wage and payroll compliance.
Who is affected:
- Employers
- Workers
What employers should do:
- Prepare for potential changes to minimum wage and related allowances as outlined in the measure.
- Review payroll practices to align with any updates to the minimum wage and allowances if enacted.
Notes: Effective month: 2026-05. Manual verification recommended.
Law No. 21,561 (Reduction of the Workweek to 40 Hours)
What it is: Law No. 21,561, known as the Reduction of the Workweek to 40 Hours, has been published and introduces a second phase lowering the statutory maximum ordinary weekly working time to 42 hours and creating employer obligations related to working time.
What it changes: The change requires employers to adjust schedules, update attendance records, and modify employment contracts to reflect the new workweek standards.
Who is affected:
- Workers
What employers should do:
- Adjust working schedules to align with the new 42-hour weekly limit.
- Update attendance records to reflect the revised workweek.
- Modify employment contracts to incorporate the new working time requirements.
Notes: Effective month: 2026-04. Manual verification recommended.
Paid Holiday for Sham El-Nessim
What it is: A circular designates a paid holiday for Sham El-Nessim, requiring private-sector employers to treat Monday 2026-04-13 as a paid holiday.
What it changes: If staff are needed to work on that day, employers must provide double pay or grant a compensatory day off.
Who is affected:
- Workers in private-sector employment
- Employers in the private sector
What employers should do:
- Classify Monday 2026-04-13 as a paid holiday for eligible staff.
- If staff work on that day, ensure either double pay or a compensatory day off is provided.
Notes: Effective month: 2026-04. Manual verification recommended.