Chile’s tech sector is rapidly growing, with a burgeoning ecosystem of startups and established tech companies. The country boasts a highly skilled talent pool, supported by a robust network of universities and technical institutions. Chile’s strategic location in Latin America, along with its strong economic stability and business-friendly environment, make it an attractive destination for tech companies looking to expand or collaborate in the region.

Market Overview:

Cost Advantage:

Percentage Range	50-60%
Compared to	40-60% less than US talent

 

Talent Market:

Pool Size	100k
Software Engineers	61,000

 

Work Week:

Weekly Hours

42 – 45

 

English Level:

Rank	52nd out of 113 countries

 

Public and Local Holidays:

Total Days

16

 

Average Retention Rates:

Years

2-3

 

Cultural Compatibility:

Compatibility

Very Good

 

Global Brands that Hire in Chile:

Companies

Microsoft, Meta, JPMorgan Chase & Co

 

USA Working Hours Overlap:

Hours Overlap

8 hours with EST Capital

 

OVERVIEW: 

Capital	Santiago
Currency	Chilean Peso (CLP)
Languages	Spanish
Payroll Frequency	Monthly
GDP per Capita	$14,358.35
Employer Tax	3.4%-3.9%

Chile Talent Market Synopsis

Market Growth	Chile’s IT sector is experiencing rapid expansion, with a projected market growth of $3.9 billion between 2022 and 2027. This growth is fueled by advancements in AI integration, digital information, and a wide array of IT services including education, training, consulting, development, integration, and hardware/software support.
Talent Pool	Chile boasts a robust tech ecosystem, with over 100,000 skilled professionals and more than 4,000 companies specializing in software services. This abundance of talent positions Chile as a key hub for tech expertise within Latin America.
Cost Efficiency	US companies enjoy significant cost savings when hiring in Chile, as the average salary for software engineers is 50-60% lower than in the United States. Additionally, Chilean salaries typically fall below those of neighboring South American nations such as Mexico.
Ease of Business	Chile ranks as the top destination in Latin America for ease of doing business, providing a favorable environment for tech hiring. This favorable business climate streamlines processes and reduces administrative burdens for companies.
Time Zone Alignment	With its location in GMT-4, which aligns with EST, Chile offers up to 8 hours of overlapping working hours with US companies, facilitating seamless communication and collaboration.
Work Hours Trends	The typical workweek in Chile is evolving towards a greater work-life balance, with schedules projected to decrease from 44 hours in 2024 to 40 hours per week by 2028, enhancing productivity and employee well-being.
Holidays and Breaks	Chile observes 17 public holidays, providing ample opportunities for rest and relaxation, contributing to employee satisfaction and overall productivity.
Hiring Methods	US companies utilize various methods such as contracting, staff augmentation, and Employer of Record (EOR) services to streamline hiring processes in Chile, ensuring flexibility and efficiency.
Payment Solutions	Popular payment methods for talent in Chile include Parallax, bank transfers, cryptocurrencies, PayPal, Wise, Payoneer, Stripe, and Skrill, chosen for their convenience, security, and speed of transaction processing, particularly for international payments.
Cultural Alignment	When hiring in Chile, US companies benefit from high English proficiency, particularly in urban centers like Santiago, as well as cultural similarities such as a strong work ethic and a focus on delivering quality outcomes.
Retention Rates	Chile boasts the highest employee retention rates in Latin America, providing stability and continuity for businesses operating in the region.
Notable Employers	Global brands such as Microsoft and JPMorgan Chase & Co. are among the many prestigious companies that recognize and leverage Chile’s talent pool for their operations.

 

Prime tech hubs in Latin America

Latin America is a great spot for software development because there are lots of really smart tech people here, and more are joining the field all the time. Plus, it’s easier to find top talent compared to places like North America where there’s a ton of competition.

Countries in Latin America often score well on global rankings for things like business friendliness and innovation. For example, they’re usually in the top 50 on the GSLI and within the top 100 on the Global Innovation Index. They’re also ranked pretty high for how easy it is to do business there. Governments in these countries are really into things like digitalization and making it easy for foreign businesses to invest.

There are nearly 2 million tech professionals in Latin America, which is a huge pool of talent. With so many skilled workers and a growing tech scene, businesses looking to outsource software development can find all the help they need. Plus, there are lots of places like accelerators and tech parks that support tech projects, making it even easier for businesses to get started.

Sources: N-iX’s recent market report LinkedIn

Chile at a Glance

Software Developers: 61,000+

Software Development Companies: 152

Chile’s got a solid tech scene and good infrastructure. It’s been growing fast economically over the last ten years, and it’s considered one of the top innovators in Latin America and the Caribbean.

The ICT market in Chile is set to hit around $13.93 billion by 2026, and there are about 61,000 people working in IT. The growth is because more folks are using digital tech like cybersecurity, AI, and robotics.

There are 150 small- and medium-sized tech companies in Chile, along with 800 businesses making video games and apps. The main tech spots are Santiago, Valparaíso, Concepción, and Antofagasta.

Infrastructure in Chile

Internet Connectivity:

By 2023, internet access has become indispensable in Chile, reaching approximately 90.2% of the population, or around 17.69 million individuals. This significant figure correlates with the reported 17.7 million internet users in the country, showcasing a notable increase of approximately 7.6 million users over the past decade. The Chilean government has launched an extensive initiative aimed at addressing connectivity gaps, particularly in underserved areas. This initiative encompasses various sectors and focuses on regulatory measures, digital infrastructure development, and ensuring universal access to connectivity.

Mobile Penetration:

Chile leads the region in mobile penetration, boasting an impressive rate of 147%, equivalent to 28.84 million cellular mobile connections. This figure surpasses the country’s total population, underlining the widespread adoption of mobile technology across Chile. The high penetration rate highlights the ubiquity of mobile devices and their pivotal role in everyday life and communication.

Mobile Network Speeds:

Among mobile network providers in Chile, WOM stands out for offering the fastest overall experience. With average download speeds of 24.5Mbps and upload speeds of 8.8Mbps, WOM’s network provides users with reliable and high-speed connectivity for various online activities. This demonstrates Chile’s commitment to advancing telecommunications infrastructure to meet the demands of a digitally connected society.

Differences in Software Developer Salaries Across Chilean Cities

In Chile, software developer salaries vary widely across different cities, according to data from worldsalaries.com. Santiago stands out with the highest average salary, reaching 25,440,400 CLP annually, highlighting its importance as the country’s economic and technological center. Conversely, Rancagua offers the lowest average salary at 18,598,500 CLP.

Cities like  La Florida and Maipu provide relatively high salaries, averaging at 24,239,000 CLP and 23,520,800 CLP respectively, indicating a strong demand for tech professionals in these regions. Meanwhile, cities such as Antofagasta, Las Condes, and Puente Alto offer competitive salaries, each exceeding 21 million CLP annually. These salary discrepancies reflect the economic conditions and demand for tech talent in different parts of Chile.

City	Annual Average Salary (CLP)
Antofagasta	21,719,900 CLP
Concepcion	19,200,400 CLP
La Florida	24,239,000 CLP
Las Condes	21,241,100 CLP
Maipu	23,520,800 CLP
Penalolen	19,921,600 CLP
Puente Alto	22,799,000 CLP
Rancagua	18,598,500 CLP
San Bernardo	21,841,900 CLP
Santiago	25,440,400 CLP

 

Source: https://worldsalaries.com/average-software-developer-salary-in-chile/

Analysis of Payment, Taxes and Benefits

In Chile, tech talent usually employs a blend of local and international payment methods, including Bank Transfers, PayPal, Skrill, Western Union, Payoneer, and Cryptocurrencies.

Payroll:

– Chile releases payroll every month.

Minimum Wage:

– For employees aged 18 to 65: CLP 400,000/month

– For employees under 18 or over 65: CLP 298,391/month

Overtime Pay:

– 150% of hourly rate for overtime on normal working days

– 130% of regular rate for working on rest days

Bonus:

– Customary 13th Month Pay for Chilean employees

Employee Benefits:

– Pension Plan

– Statutory Leaves

– Health Benefits

– Unemployment Insurance

 – Meal Vouchers

 – Flexible/Remote work

Taxes:

– Employer Payroll Tax:

•   Unemployment Insurance: 2.4%
•   Disability and Survival Insurance: 1 to 1.5%

– Employee Payroll Tax:

•   Unemployment Insurance: 0.6%
•   Pension: 10%
•   Health Plan: 7%

– Employee Income Tax:

In Chile, there are two main types of taxes for income. One is called the Global Complementary Tax, which is applied every year. Here are the rates based on how much money you earn.

Taxable Income (USD)	Rate (%)	Discount (USD)
0 – 11,368.06	0.00	0.00
11,368.06 – 25,262.37	4.00	454.72
25,262.37 – 42,103.94	8.00	1,465.22
42,103.94 – 58,945.52	13.50	3,780.93
58,945.52 – 75,787.10	23.00	9,380.76
75,787.10 – 101,049.46	30.40	14,989.00
101,049.46 and more	35.50	19,637.28

The other one is the Employment Income Tax, which is calculated on your total salary after subtracting the social security contribution. Here are the rates:

Taxable Income (USD)	Rate (%)	Discount (USD)
0 – 947.34	0.00	0.00
947.34 – 2,105.20	4.00	37.89
2,105.20 – 3,508.66	8.00	122.10
3,508.66 – 4,912.13	13.50	315.08
4,912.13 – 6,315.59	23.00	781.73
6,315.59 – 8,420.79	30.40	1,249.08
8,420.79 and more	35.50	1,636.44

 

VAT:

– Standard VAT rate: 19%

Work Environment in Chile

Common Cultural Traits:

Latin America, including Chile, has similar cultural traits to North America and Europe, making collaboration easier. People value professionalism, meeting deadlines, and delivering quality work. Latin American professionals are often adaptable, proactive, and entrepreneurial, fitting well with the fast-paced tech industry.

Work Environment in Chile:

Business culture in Chile is formal and traditional. Appearance, status, and respect are important. Companies have hierarchies, with top-level executives making most decisions. Meetings often start with senior executives.

Cultural Harmony:

Chileans focus on building strong, trustworthy relationships in business. Meetings begin with a friendly conversation about personal life and family. Business deals are made between individuals, so building relationships takes time. It’s essential to be patient and invest in connections.

Networking and Relationships:

In Chilean business culture, having a network or connection (called ‘pituto’) is valuable for making connections and sharing information.

Time Management and Punctuality:

Being on time for meetings is crucial. However, getting to the business might take a while, and meetings can run longer than expected. Patience is needed when waiting for responses or discussing matters in person.

Finding Talent

Hiring developers in Chile can save money compared to the U.S. and Europe. Salaries for top developers in Chile are much lower. For example, a Python developer in the U.S. might make $175,000 – $195,000, while in Chile, it’s $68,000 – $96,000. Similarly, for JavaScript, the U.S. range is $165,000 – $185,000 compared to Chile’s $63,000 – $90,000.

Job Hunting Platforms:

Popular websites for finding jobs in Chile include Computrabajo, Indeed, Chiletrabajos, Trabajando, and Empleospublicos.cl. These sites are well-liked and get lots of visitors, making them good places for job seekers to find opportunities.

Recruitment Assistance:

Companies like GoGloby.io help find talent in Chile. They focus on matching job requirements with the right skills and qualities. They might also offer extra services like customer service managers and online platforms to help manage hiring.

Probation Period:

New hires usually have a 90-day trial period.

Standard Leave Entitlements in Chile

– Paid Time Off: Employees are entitled to 15 days of paid annual leave.

– Maternity Leave: Mothers are eligible for 18 weeks of paid maternity leave.

– Paternity Leave: Fathers are entitled to 14 calendar days of paid paternity leave.

Chilean Public Holidays in 2024:

January 1 (Monday): New Year’s Day

January 8 (Monday): Epiphany Holiday

March 29 (Friday): Good Friday

March 30 (Saturday): Easter Saturday

May 1 (Wednesday): Labour Day

May 21 (Tuesday): Navy Day

June 20 (Thursday): National Day of Indigenous Peoples

June 29 (Saturday): Feast of St Peter and St Paul

July 16 (Tuesday): Our Lady of Mount Carmel

August 15 (Thursday): Assumption Day

September 18 (Wednesday): Independence Day

September 19 (Thursday): Army Day

October 14 (Monday): Day of the Race

October 31 (Thursday): Reformation Day

November 1 (Friday): All Saints’ Day

December 8 (Sunday):  Immaculate Conception

December 25 (Wednesday): Christmas Day

Offboarding and Termination Procedures in Chile

Termination Process:

Employees can be let go for reasons like dishonesty, negligence, fraud, or other work-related problems. Even managers can be fired, but they still get a severance package as required by law.

Notification Period:

When an employee is being let go, the employer has to give them at least 30 days’ notice.

Severance Pay:

If someone is let go because of business reasons, like the job isn’t needed anymore, they get a severance package worth a month’s salary. But if they did something really wrong, like breaking their contract, they might not get severance pay.

Conclusion

Chile offers a vibrant talent market with skilled professionals across various sectors. With its growing economy, competitive salaries, and favorable business environment, Chile presents promising opportunities for companies seeking top talent.

To find the perfect talent and dedicated professionals for your project or company, reach out to us today!