Leave policy in Chile

The Codigo del Trabajo (Labor Code), administered by the Direccion del Trabajo (Labor Directorate), outlines specific provisions on leave entitlements in Chile. This includes everything from vacation and sickness to parental time off and national observances.

If you are planning to venture into the Latin American market, it is as important to understand the leave laws in Chile as it is to understand those in other countries in the region, like Argentina. The rules and regulations vary across countries, and require great effort to remain compliant.

This guide covers statutory leave in Chile, including annual leave, parental leave, sick leave, and more.

Vacation & annual leave in Chile

Annual leave in Chile is applicable after the employee has worked for 1 year. They are entitled to 15 days of leave.

Moreover, after 10 years of service, they get an extra day every three years.

That said, leaves must be allowed to carry forward up to two years as per the law. 

For employers hiring employees in Chile, it can be beneficial to consider using an Employer of Record, such as Payoneer Workforce Management, to assist with navigating onboarding, payroll, time-off management, and other local regulations.

Public holidays in Chile

Chile’s holiday calendar observes 12 civil holidays, 9 religious holidays, and 3 special holidays that apply to specific groups of people or regions. All are paid days off for employees. 

Below is the holiday calendar for Chile:

• New Year’s Day
• Good Friday
• Holy Saturday
• Labor Day/ May Day
• Navy Day
• National Day of Indigenous Peoples
• Saint Peter and Saint Paul
• Our Lady of Mount Carmel
• Assumption of Mary
• National Day (Independence Day)
• Army Day
• Day of the Discovery of Two Worlds
• Reformation Day
• All Saints’ Day
• Immaculate Conception Day
• Christmas Day
• New Year’s Eve

The government sometimes shifts holidays to a nearby Monday or Friday to create long weekends. Regional holidays may also apply in certain areas.

Sick leave in Chile

Sick leave in Chile does not have a limit. However, employees have to provide a medical certificate within 2 days.

The first 3 days are unpaid, and the social security pays from the fourth day.

When employees fall ill, the cost of leave is handled by the health insurance system, either FONASA (the public health fund) or a private ISAPRE.

The employer’s role is largely administrative, that is, receiving the medical certificate from the employee and forwarding it to the relevant health insurer. 

For specifics on eligibility, duration, and payment timelines, employers should refer to their local health insurance provider or consult the Labor Directorate.

Maternity leave in Chile

Maternity leave in Chile is for 18 weeks, typically divided into 6 weeks (pre-natal) and 12 weeks (post-natal). 

The social security system (FONASA or a private ISAPRE) covers the cost. 

Further, pregnant employees benefit from strong job protection under Chilean law. You cannot terminate employees during their pregnancy and up to 18 months after childbirth, unless a labor court provides authorization. 

These protections also help realize the importance of worker classification. Maternity benefits apply to employees only, so if they are not upheld because the person is classified as a contractor, but works as an employee, it could expose businesses to legal risks and penalties.

Paternity leave in Chile

Fathers are entitled to 5 days of paid paternity leave in Chile. Moreover, 7 weeks after the birth of a child, the mother can transfer some or all of their remaining maternity leave to the father. 

This shared leave setup means families get to decide together how they split childcare responsibilities between both parents.

Other types of leave in Chile

The employment laws for Chile also list these leaves:

• Childcare leave – Parents can take 10 days of paid leave to take care of their child older than 1 year, and below 18 years.
• Bereavement leave – 7 days in case of spouse or children, 4 days for immediate family members.
• Wedding leave – 5 days of paid leave.

That said, individual employment may include provisions around additional leave entitlements in Chile. 

Explore Payoneer Workforce Management in Chile

Chile’s leave structure has some unique elements. Multiple leave types are funded by the social security system rather than the employer, and compliance timelines vary. 

Managing leave policy in Chile across all of this takes attention to detail, especially if you’re doing it across multiple countries at once.

Payoneer Workforce Management helps businesses onboard, pay, and manage talent in 160+ countries without setting up a local entity. The unified platform covers time-off tracking, EOR and payroll management, localized contracts, and benefits administration.

Need help managing contractors in Chile? Agent of Record (AOR) services and a contractor management system can help. 

Book a demo today!

FAQs

1. Is annual leave mandatory for employers in Chile?

If the employee has worked for 1 year, they are entitled to 15 days of annual leave. The statutory framework for paid time off is governed by the Labor Code. Unused vacation can carry over for up to two consecutive years.

2. Who pays for sick leave and maternity leave in Chile?

Neither is employer-funded. The health insurance system handles sick leave and maternity leave payments: FONASA (public) or a private ISAPRE. The employer’s role is administrative.

3. What are the standard working hours in Chile?

45 hours a week, spread across five to six consecutive days. The average working day is nine hours. Overtime is capped at two extra hours per day and must be paid at 1.5x the regular hourly rate.

4. What happens if a worker is misclassified in Chile?

Penalties, back payments for unpaid benefits, and legal claims are all possible. Chilean courts typically examine the actual working relationship, not just contract terms. A contractor management system can help streamline contractor payments and mitigate misclassification risks.

5. How does Payoneer Workforce Management support leave compliance in Chile?

Payoneer Workforce Management helps businesses navigate onboarding, payroll, and time-off management as per leave entitlements in Chile. You don’t need a local entity, and the platform helps you stay aligned with Chilean labor laws.