Employer cost in Chile at different salaries
| Salary level | Gross salary | Employer SSC | Mandatory non-tax payments | Total employer cost |
|---|---|---|---|---|
| 67% of AW | 9,515,241 CLP | 0.4% | 5.0% | 10,022,118 CLP |
| 100% of AW | 14,201,852 CLP | 0.4% | 5.0% | 14,958,243 CLP |
| 167% of AW | 23,717,093 CLP | 0.4% | 5.0% | 24,980,265 CLP |
Worked example
The OECD average wage in Chile for 2025 is 14,201,852 CLP (about $30,501 in US-dollar purchasing power). On top of that salary the employer pays social security contributions of 0.4%, or 53,257 CLP. On top of social security, employers must also make 5.0% in mandatory non-tax payments (mandatory pension and health contributions), which the OECD reports separately from taxes but which are a real cost of employment. That brings the statutory total to 14,958,243 CLP a year (1,246,520 CLP a month), or 7,191 CLP per hour at 2,080 hours. In 2024 the rate at the average wage was 0.0%, so it rose. The rate stays at about 0.4% even at 167% of the average wage, so it scales with pay.
Chile ranks #36 of 38 OECD countries for employer contributions at the average wage (OECD average: 16.6%). Employer contributions are low here, so most of the wage wedge falls on the employee side.
Sources: OECD Taxing Wages 2025, comparative indicators (single worker, no children; average wage as defined by the OECD for each country) and OECD, Non-tax compulsory payments as an additional burden on labour income in 2025 (Tables 5 and 6) for mandatory pension and insurance payments that are not classed as taxes, such as Australian superannuation. Model estimates: voluntary benefits, local caps and sector-specific schemes are not included.
Related
Frequently asked questions
How much does an employee cost in Chile?
At the OECD average wage of 14,201,852 CLP, about 14,958,243 CLP a year including 0.4% employer social security (2025).
What are employer social security contributions in Chile?
About 0.4% of gross pay at the average wage, 0.4% at 67% and 0.4% at 167% of it (OECD model).