Exploring the Advantages of Payroll Outsourcing in Chile

By EasyCo Updated October 10, 2026

Payroll in Chile involves monthly contributions to several institutions, frequent legal changes and strict deadlines. Outsourcing it lets a company pay its staff correctly and on time while it focuses on the business.

What Chilean payroll involves in 2026

Minimum wage: CLP 553,553 per month from 1 May 2026 (Law 21,830).
Working hours: 42 hours a week from 26 April 2026, falling to 40 in 2028 (Law 21,561).
Contributions: pension (AFP), health (Fonasa or Isapre) and unemployment insurance, withheld from salaries, plus employer-paid insurance against work accidents, disability and survivorship, and unemployment.
Pension reform: Law 21,735 added a new employer pension contribution from August 2025 that increases every year.
Gratificación: companies with profits share them with staff under the Labor Code.
Payslips and records: monthly payslips, contracts registered with the Dirección del Trabajo and electronic working-time records where used.

Benefits of payroll outsourcing

Accuracy: contributions and withholdings calculated under current rules.
Compliance: fewer fines from the Dirección del Trabajo and contribution institutions.
Cost: no payroll software or in-house specialist to maintain.
Confidentiality: salary data handled outside the local team.
Scalability: new hires and terminations handled as you grow.

Why companies hire in Chile

Chile offers stable institutions, an educated workforce and trade agreements with most major economies. See our guide to talent acquisition in Chile.

How a company is set up in Chile

Choose the company type. Most foreign founders use the SpA.
If you are abroad, sign a power of attorney, apostilled and translated into Spanish, so a person in Chile can act for you.
Sign the incorporation deed before a notary, or form the company online in the Registro de Empresas y Sociedades.
Register the extract in the Commercial Registry and publish it in the Diario Oficial (both are automatic on the online registry).
Obtain the company’s RUT and file the start of activities (inicio de actividades) with the SII.
Bring in the capital and open a corporate bank account.
Set up electronic invoicing, monthly Form 29 filings and payroll.

Full guide: how to set up a company in Chile.

Get help from Easyco

Easyco coordinates the company setup in Chile up to the issue of the RUT, and supports companies afterwards with tax, accounting and payroll. Contact us to discuss your project.