Automate payroll in Chile with Al-powered calculations, local Previred (AFP / Fonasa / Isapre) handling, and compliant payslips generated in seconds.
Establish credibility and match buyer objections: compliance, local knowledge, pricing clarity, and support.
Local Compliance Without Local Overhead: Ontop automates Chile tax calculations and Convenio Colectivo requirements so you avoid setting up a local entity. The platform handles Gratificación Legal payments, wage floors, and regional tax variation to keep payroll compliant and predictable. Transparent Pricing And Fees: Pricing clearly shows payroll fees, exchange rates, and contractor or EOR plan costs before payment.
Finance teams get predictable statements with no surprise charges. Human Support When It Matters: Live support helps resolve local queries and edge cases. Dedicated onboarding specialists guide tax registration and social security setup so teams move from hire to pay faster. Global Coverage With Chile Expertise: Ontop supports hiring across 150+ countries while providing Chile-specific workflows. Proration for Gratificación Legal, Convenio Colectivo compliance, and SII deadline management. Scale globally while keeping local accuracy.
Provide fast facts: minimum wage, pay frequency, bonuses, regional salary ranges. Satisfies informational intent and helps long-tail SEO.
Minimum Wage And Pay Frequency: Chile's minimum wage is $500000 CLP Monthly. With Gratificación Legal, annual total reaches the statutory requirements. Many employers pay 25% of base salary or 4.75 minimum wages or prorate into Monthly payments. Ontop supports both structures.
Average Salary And Net Take Home: National average salary is ~$12000000 CLP per year, about ~$1000000 CLP per month gross. Ontop displays gross-to-net breakdowns so payroll and offers align with local expectations.
Regional Variation To Budget For: Salaries run higher in Santiago and Antofagasta. Santiago averages $1,200,000 - $1,800,000 CLP (~20% above national). Antofagasta around $1,100,000 - $1,600,000 CLP (~15%). Ontop lets you model regional differences in offers and cost projections.
Gratificación Legal: Chile commonly provides 25% of base salary or 4.75 minimum wages. Payroll logic captures proration rules so payslips match local contract terms.
Chile's wage structure includes Convenio Colectivo that set sectoral minimums. Buyers search "minimum wage by sector," "CBA wages." Captures mid-funnel research intent.
National Statutory Minimum Wage: Chile's national minimum wage is $500000 CLP Monthly. Applies to all workers unless a higher sectoral minimum applies. Revised annually.
Convenio Colectivo Sectoral Minimums: Chile has multiple active Convenio Colectivo agreements covering specific sectors. These set minimums higher than the statutory minimum depending on industry and role. Sectors include key local industries.
How Sectoral Wage Floors Affect Payroll: If an employee falls under a specific CBA, you must pay the sectoral minimum. Underpaying triggers wage claims, back pay, and penalties. Ontop stores and applies the correct rate based on employee role and sector.
How Ontop Applies Correct Wage Floors: Ontop maintains an updated CBA database and automatically applies the correct minimum wage. During payroll preview, the system displays which agreement applies and confirms compliance. Removes manual compliance risk.
National Average Salary Benchmark: Colombia's national average salary is approximately ~$12000000 CLP per year. Varies by role, experience, and sector. Larger cities run up to 20% higher; rural regions typically align with the statutory minimum.
High-Cost Cities: Santiago and Antofagasta: Santiago offers salaries ~20% above national average, particularly in tech and finance. Typical range: $1,200,000 - $1,800,000 CLP annually for mid-level roles. Antofagasta offers ~15% premium with strength in innovation and services. Typical range: $1,100,000 - $1,600,000 CLP.
Secondary Cities and Regional Variation: Secondary cities generally sit between 5% to 10% above the national average, depending on local industries. Rural regions typically align with or fall below the national average. When budgeting for diverse teams, account for market research to ensure equitable offers.
How Ontop's Cost Calculator Handles Regional Modeling: Input location and role to preview total employer cost. See how regional differences, wage floors, and benefits combine to show true cost of employment by city.
Buyers search "contract types Chile," "permanent vs fixed-term." Legal structure and misclassification risk are critical for compliance.
Permanent Full-Time Employment (Contrato Indefinido): Standard indefinite contract with full statutory protections. Employees get all mandatory benefits (Gratificación Legal, Feriado Legal, sick leave, maternity leave, Indemnización por Años de Servicio). Termination requires just cause or economic redundancy with notice and severance payout. Employer Previred (AFP / Fonasa / Isapre) contributions typically 5.0%.
Fixed-Term Contracts (Contrato a Plazo Fijo): Limited-duration contracts (typically for a fixed period, renewable). Used for project work, seasonal roles, or temporary needs. Same taxes and benefits as permanent, but with defined end date. Subject to renewal restrictions and CBA rules. Simpler termination but accrued benefits paid in full.
Part-Time Contracts: Reduced hours subject to local statutory limits. Salary and benefits are prorated by hours worked. Previred (AFP / Fonasa / Isapre) and taxes apply pro-rata. Ontop handles prorated Gratificación Legal automatically.
Apprenticeships: Training contracts for students or junior profiles with reduced Previred (AFP / Fonasa / Isapre) contributions where applicable. Includes structured training and on-the-job learning. Misclassification can trigger reclassification penalties.
Self-Employed / Boleta de Honorarios: Independent contractor operating own business. No employer obligations, only invoice payments. Contractor handles own Previred (AFP / Fonasa / Isapre), taxes, invoicing. Critical: if worker appears to be employee (direction, control, exclusivity), you face reclassification and back-pay exposure.
Compliance Differences Between Contract Types: Tax rates, Previred (AFP / Fonasa / Isapre) contributions, benefits, termination rules, and Indemnización por Años de Servicio accrual vary by type. Misclassification triggers wage claims, penalties, and reclassification costs.
How Ontop Templates & Payroll Logic Handle Each Type: Ontop provides compliant templates for each type and applies correct payroll logic: permanent benefits, fixed-term accruals, part-time prorations, apprenticeship rates, and Boleta de Honorarios invoicing. Avoids misclassification risk.
Explain operational flow from onboarding to monthly payments. Reduces friction and clarifies steps.
Onboarding And Registration: Ontop handles registration with Chile tax authorities (SII) and Previred (AFP / Fonasa / Isapre) and collects required IDs. Automation plus human verification reduces setup time and avoids compliance gaps. Typical onboarding: a few business days.
Monthly Payroll Calculation: Gross-to-net includes progressive 0 - 40 tax rates, 17 - 20% Previred (AFP / Fonasa / Isapre), and Gratificación Legal proration. Platform applies region-specific tax bands, CBA rules, and wage floors for accurate payslips.
Contributions And Filings: Employer contributions include Previred (AFP / Fonasa / Isapre) (17 - 20) and applicable local surcharges. Submitted according to statutory deadlines to Previred (AFP / Fonasa / Isapre) on your behalf. Ontop maintains records for annual reconciliation.
Payment Execution And Reconciliation: Payments in CLP $ via local bank transfers to local accounts. Ontop shows conversion rates and fees before approval. Audit-ready receipts and instant USD payout options available.
EOR Vs Boleta de Honorarios: Your Options: Choose Boleta de Honorarios plans for flexible work or full EOR for permanent employees. Ontop supports both and highlights compliance differences so you pick the right structure.
Finance teams search "Chile payroll deadline." Captures operational queries and establishes Ontop as deadline-management partner.
Monthly Tax Withholding & Previred (AFP / Fonasa / Isapre) Payment Deadlines: SII tax withholding due April 30th via SII online portal. Previred (AFP / Fonasa / Isapre) contributions due 13th of each month to Previred (AFP / Fonasa / Isapre) authority. Late payments trigger UTM-based fines and interest penalty plus interest.
Annual Compliance Deadlines: Declaración Jurada Anual: annual Previred (AFP / Fonasa / Isapre) reconciliation, due March. Operación Renta: due April 30th. Certificado de Sueldos: annual employee tax certificate due March.
Payroll Processing Calendar (Monthly Example):
Week 1-3: Gather -> Week 4: Calc -> Day 30: Pay. Key Regulatory Bodies & Filing Channels: SII:
Taxes. Online filing via official portals.
Dirección del Trabajo: Labor inspections.
Superintendencia de Pensiones: AFP/Social Security audits.
Penalties for Non-Compliance: Late SII remittance:
UTM-based fines and interest plus interest. Previred (AFP / Fonasa / Isapre) shortfalls result in fines. Missing documentation increases audit exposure. Audit exposure increases with missing filings. Willful violations can trigger criminal liability.
How Ontop Manages Deadlines Automatically: Ontop tracks all compliance deadlines, sends alerts before due dates, and submits filings automatically. Finance team approves payroll ahead of deadlines. All documentation audit-ready.
Buyers search "how much leave Chile," "maternity leave," "paid leave entitlements." Impacts total cost of employment and satisfies planning intent.
Gratificación Legal (Paid Monthly or Annually): All permanent employees entitled to 25% of base salary or 4.75 minimum wages. Typically paid in Paid Monthly or Annually, or prorated across year. Statutory bonus, not discretionary. Must factor into annual payroll cost.
Feriado Legal: Minimum 15 working days of paid vacation annually. Unused leave carryover varies by CBA. Some allow unlimited carryover; others limit carryover. Leave paid at regular rate upon termination if unused.
Licencia Médica: Statutory sick leave paid at Subsidized by Fonasa/Isapre from day 4 (or day 1 if >10 days). Medical certification required after a few consecutive days as per local law. Previred (AFP / Fonasa / Isapre) may provide supplementary coverage for longer absences.
30 weeks (Pre & Postnatal) of maternity leave. Paid at 100% up to legal cap by the local health entity. Additional parental leave may apply.
Public Holidays: Chile observes 15 days national holidays annually. Employees receive full pay or premium pay if required to work. Regional variations exist. Indemnización por Años de Servicio: Permanent employees receive 1 month per year worked (capped at 11 years) when terminated without just cause. Indemnización por Años de Servicio is a significant liability, must be accrued regularly and paid in full at termination.
How Ontop Automates Benefit Accrual & Compliance: Ontop automatically calculates Gratificación Legal, leave balances (by CBA type), maternity deductions, and Indemnización por Años de Servicio reserves. Payslips show accruals and deductions clearly. Audit-ready.
Decision makers need concrete cost inputs. Provide contribution ranges, deduction rates, and sample calculations for budget decisions.
Employer Previred (AFP / Fonasa / Isapre) And Additional Charges: Employer Previred (AFP / Fonasa / Isapre) varies by sector and contract. Approximate rates:
Employee Deductions And Tax Bands: Employee deductions include 17 - 20% Previred (AFP / Fonasa / Isapre) and progressive SII tax: 0 - 40 Regional/local taxes may add extra percentages.
Total Employer Cost Example: Scenario: Permanent employee in Santiago at $1000000 CLP/month gross.
For annual planning, expect the total employer cost to be roughly ~15% to ~25% above the gross salary, plus applicable statutory accruals for benefits.
Clarify payment rails, currency handling, and worker features that influence adoption and retention.
Local CLP $ Transfers And Pay Runs: Payroll in Chile typically uses CLP $ payments via local bank networks to local accounts. Ontop supports local rails so workers receive funds on payday in a single auditable run. No conversion friction.
Multi-Currency And Dynamic Conversion: When paying from other currencies, Ontop shows rates and fees before confirmation. Finance leaders get transparent previews. All conversions logged for audit.
Ontop Wallet And Instant USD Payouts: Workers receive USD via Ontop wallet backed by U.S. bank for fast access. Instant payouts reduce waiting times. Visible on worker dashboard and app. Useful for remote workers or USD preference.
Visa Debit And Worker Perks: Ontop issues Visa cards (physical or virtual) for immediate fund access. Security controls (instant freeze, limits) and perks (cashback, travel benefits, reduced transfer fees).
Buyers search "Chile payroll mistakes," "how to avoid penalties." Fear-based content drives conversions.
Boleta de Honorarios: Continuous billing by contractors can be deemed employment.
Ontop supports payroll for both contractors and employees in Chile. The platform provides contractor (Boleta de Honorarios) contract templates and full EOR services for employees so you can choose the structure that fits compliance and operational needs.
Ontop applies local employer contribution rules (typically around 17 - 20) and sector-specific rates when calculating payroll liabilities. The system presents a clear breakdown of employer charges during payroll preview so you know the total cost before approval.
Yes, mandatory bonus structures like Gratificación Legal are common. The standard structure is 25% of base salary or 4.75 minimum wages, usually paid in Paid Monthly or Annually or prorated across the year. Ontop supports both approaches and reflects proration on employees' payslips and in cost projections.
Employees typically see Previred (AFP / Fonasa / Isapre) deductions around 17 - 20 and progressive SII income tax withholding between 0 - 40 depending on income bracket and region. Ontop calculates and withholds the correct amounts based on salary, location, and personal circumstances.
Yes, Ontop provides cost previews that include employer contributions, taxes, statutory charges (like Indemnización por Años de Servicio accruals), and regional variation. Use these previews to budget hires accurately and compare contractor versus employee scenarios.
No. Ontop can operate as your Employer of Record (EOR), handling all legal employer responsibilities and registrations. You avoid the complexity and cost of setting up a local company. Alternatively, if you have an entity, Ontop can serve as your payroll processor.
Common risks include misclassifying employees as contractors, missing SII payment deadlines, and failing to adhere to Convenio Colectivo rules. Ontop's automation and expert support mitigate these risks.
