How to Find and Hire Software Developers in Chile

Many US-based tech companies looking to add new software developers to their ranks usually turn to Chile, and for good reason. Chile’s software developers are skilled enough to compete with the best of the best in any part of the world, and this was proven when they came 27th in the HackerRank competition, even higher than US Software developers. While the tech market in the region is relatively new compared to other parts of the world, it grew at an 8.8% CAGR between 2014 and 2019. 

The IT market in Chile was worth 15.89 billion dollars in 2022, and its value may rise as high as 25.14 billion dollars by 2027.  As the IT ecosystem in Chile grows, more foreign companies are bound to visit this country to hire software developers. This region has a lot in store for any brand interested in premium software development. 

Why Hire Software Developers in Chile for Your Next Project?

For some time now, there’s been an increased demand for Chilean developers due to the country’s reputation as a major tech hub in Latin America. While there have been plenty of positive reports from companies hiring from this region, many others are still wary about working with these South American experts. Are you a foreign company looking for the best hands to handle your tasks? So, why is Chile the best location to hire software developers for cost-effective solutions? 

There are several reasons that make this country a prime location for those interested in hiring developers in Chile. Software developers in Chile are highly sought after because of the robust tech landscape in the country, innovative startup scene, and competitive costs. Now, let’s review each of these reasons in detail. 

What Are the Competitive Cost Advantages of Hiring Software Developers in Chile? 

One of the primary reasons for hiring software developers in Chile is the region’s competitive pricing and potential cost savings available to North American businesses, but what are the competitive cost advantages of hiring software developers in Chile? The first thing to note is that hiring software developers in Chile will cost up to 40% less in salaries and living costs. For instance, the cost of hiring intermediate front end developers in Chile costs around 27,669,600 CLP while US front end developers of the same skill level cost around 80,224,440 CLP. 

How Fast is the Software Development Industry Growing in Chile? 

According to information released by Chile’s National Institute of Statistics, there’s been a steady growth in the software development industry, characterized by an annual growth rate of 7% over the past few years. This growth rate is mainly because many foreign companies readily outsource to local software engineers and web developers without them having to leave the country. 

Chile’s software development industry has grown significantly over the last decade, positioning it as one of Latin America’s emerging tech hubs. In 2022, Chile’s information technology (IT) market was valued at approximately $4.6 billion, showing robust growth fueled by increasing demand for software solutions and IT services in both domestic and international markets. This growth trajectory is supported by a combination of factors, including government support, tech-friendly policies, and a rising number of skilled developers entering the workforce. For example, the Chilean Economic Development Agency (CORFO) offers funding and support for startups and tech companies, which has attracted both local and foreign investment.

One of the key drivers of this growth is the boom in outsourcing and nearshoring. Given Chile’s favorable time zone alignment with North America and competitive software development rates, U.S. companies increasingly see Chile as an attractive destination for hiring developers. Chile’s tech sector has an average annual growth rate of around 7% in recent years, reflecting both the country’s increasing software exports and domestic consumption of tech services.

Chile’s strong educational infrastructure also fuels this industry growth. Leading institutions such as Pontificia Universidad Católica de Chile and Universidad de Chile produce highly skilled developers proficient in various programming languages, from Python to JavaScript. As of recent reports, Chile has a tech talent pool of over 100,000 IT professionals, positioning it as a valuable contributor to Latin America’s growing tech landscape.

In addition, Santiago has emerged as the core tech hub of Chile, with over 60% of the country’s IT companies based in the capital. This concentration fosters a vibrant ecosystem of tech startups, incubators, and accelerators, contributing to the ongoing expansion of the software development industry in Chile. The combination of these factors underscores Chile’s rising importance as a regional tech hub, with continuous growth expected in the years ahead.

How Does Chile’s Robust Tech Landscape and Innovative Startup Scene Foster Innovation? 

Chile’s government has recognized the potential of a growing tech ecosystem. As a result, they have introduced several initiatives, such as Startup Chile, to support the growth of local tech startups. These initiatives have also attracted several foreign brands to the country’s shores, creating a vibrant ecosystem that fosters the development of local talent. This combination of government initiatives and foreign collaborations ensures that Chilean software developers can compete favorably on the world stage. 

As mentioned earlier, Chile has implemented several initiatives to foster growth in the software development sector, making the country one of Latin America’s most attractive hubs for tech innovation. The key innovative programs in the region include Start-Up Chile, CORFO’s Digital Talent Program, and Chiletec.

• Start-Up Chile: Established in 2010 by the Chilean Economic Development Agency (CORFO), Start-Up Chile is one of Latin America’s most notable accelerator programs, attracting tech entrepreneurs from around the globe. This program offers selected startups equity-free grants of up to USD 40,000 and a one-year visa to work in Chile. Start-Up Chile has significantly impacted the country’s startup ecosystem, helping over 2,000 startups launch and establishing Chile as a regional hub for tech innovation. According to CORFO, over 50% of companies that pass through the program remain active, creating a lasting influence on Chile’s economy and tech ecosystem.
• CORFO’s Digital Talent Program: CORFO (Corporación de Fomento de la Producción de Chile) launched the Digital Talent Program to address the growing demand for software developers and tech talent in Chile. This program focuses on upskilling the workforce through technical training and educational partnerships with coding academies, universities, and private organizations. In recent years, CORFO has invested over USD 100 million in various tech education initiatives, boosting the local talent pool and making it easier for companies to hire skilled developers within the country.
• Chiletec: Chiletec is an association of over 200 tech companies in Chile that provides networking, training, and advocacy for software development and IT services. This organization connects local companies with international markets, supporting the export of Chilean software services and promoting collaboration within the industry. In 2021 alone, Chiletec reported helping member companies achieve over USD 80 million in exports, highlighting the global reach of Chile’s tech industry.

What Does Chile’s Tech Talent Pool Offer for Software Development? 

The first thing to note about Chile’s tech talent pool is the impressive talent diversity in the region. It’s safe to say that Chile has more than 60,000 Tech professionals. This number ranks it the fifth largest tech workforce on the continent, only coming behind Argentina, Brazil, Mexico, and Colombia. Chile also ranks first on the IMD World Digital Competitiveness Ranking in terms of digital skills. 

Chile’s vibrant tech ecosystem is facilitated by several local universities offering tech programs to teenagers and young adults. Five of the universities in this region are also ranked among the top 30 in Latin America. These universities include Universidad Técnica Federico Santa Maria, Universidad Diego Portales, Pontificia Universidad Católica de Chile, Universidad de Chile, and Universidad de Concepción. Aside from these universities, Chile also has several education programs that produce talented software developers who are well-equipped to meet modern software development demands. For instance, InvestChile launched Digital Talent Up in 2023, which funded over a thousand boot camps. 

Chile’s software development talent pool is also renowned as strong and diverse, with developers skilled in various programming languages, technical tools, and collaborative methodologies, making it a competitive hub for software expertise in Latin America. Here’s a breakdown of the most common skills, languages, and technical strengths in the Chilean software development sector:

• Programming Languages: Chilean developers are particularly strong in Java, Python, JavaScript, and C++, with Java and Python seeing high demand for web and application development. JavaScript expertise, especially in frameworks like React and Angular, is commonly found among developers who work on front-end and full-stack applications. 
• Data and Database Management: Skilled in SQL and NoSQL databases, Chilean developers handle data-centric applications, a skill essential for building scalable platforms. These data management skills are essential as many Chilean tech professionals support sectors like finance and retail, which rely heavily on data analytics.
• Cloud Computing and DevOps: Expertise in cloud platforms, especially AWS, Google Cloud, and Azure, is widespread. Many Chilean developers are adept in DevOps practices, which are integral to modern development cycles, allowing for continuous integration and deployment (CI/CD).
• Agile Methodologies: With Chile’s increasing focus on collaborative project management, developers frequently work within Agile frameworks, especially Scrum and Kanban. This approach is favored by local startups and larger tech companies to optimize teamwork and productivity.
• Emerging Technologies: Chilean software engineers are also developing capabilities in areas such as AI and cybersecurity. Universities and bootcamps actively support the growth of AI skills, and there is increasing specialization in cybersecurity to meet rising demand for secure application development across industries.

Chile’s educational institutions and coding bootcamps, such as Desafío Latam, provide ongoing training that aligns with industry needs. This commitment to continuous learning and the growth of specialized tech fields has positioned Chile as a growing hub for skilled developers in Latin America, with many companies in the US and beyond hiring remote talent from Chile due to competitive salaries and high technical standards. 

Read more: Employee Leave Policies

What Are the Pros and Cons of Hiring Software Developers in Chile?

Before hiring software developers in Chile, it makes sense to consider the benefits and drawbacks of your decisions. By analysing the pros and cons of hiring software developers, you can determine how hiring them will affect you, especially in terms of cost and administrative burden. Then, you can determine if the decision is worth it. 

What Are the Pros of Hiring Software Developers in Chile? 

Let’s say you’ve chosen to hire developers in Chile. What are the benefits your company will gain. The following is a list of benefits of hiring software developers in Chile:

• Language Skills: While English is not the lingua franca of Chile, its software developers are fluent in the language. Because the developers in this region are fluent in English, it is easier for them to work with English-speaking tech companies in North America and Europe. Chilean software developers also have little or no problems adapting to these foreign organizationation cultures because they can speak their language. 
• Time Zone Compatibility: It’s exciting to note that Chile has a similar time zone to the United States. The timezone difference between Chile and the United States is only 2 hours. This means that daytime in Chile is also daytime in the US, simplifying collaboration between US and Chilean teams. Communication and meetings between foreign employers and Chilean software developers are also relatively more straightforward. 
• High Quality of Education: Government and private establishments in Chile have invested generously in the country’s software development industry, improving it considerably. As mentioned earlier, several good universities in Chile compete favorably against others in Latin America. 
• Cost Savings: Chile enjoys a stable political system and has one of the most robust economies in Latin America. As a result, the people enjoy an impressive quality of life. Hence, it costs less to hire developers from Chile than those in Europe and North America. 

What Are the Cons of Hiring Software Developers in Chile

While hiring Chilean software developers is beneficial for several reasons, they have a major disadvantage that may put off certain employers. These demerits include: 

• Cultural Differences: Hiring software developers in Chile means you’ll have to cope with a few cultural and operational differences. Chilean software developers can speak English fluently and are highly adaptable. However, you have to remember that you’re hiring people from another region whose beliefs and way of life may differ from yours. For instance, developers in Chile pay more attention to a work-life balance and take their holidays or paid-time off work seriously. If you choose to hire remotely, you’ll have to understand the local labor and create room for their numerous public holidays. 
• Multiple Days or Work: If you’ll be hiring developers from Chile, you must be prepared to accommodate their multiple public holidays and other paid days off work stipulated by local Labor Law. Chilean employment law is designed to protect the rights of employees. So, foreign employers must make provisions for these paid days off. While the efficiency of Chilean developers is unaffected by these holidays and paid leaves, you’ll need to shuffle the workload to ensure tasks are not delayed in your attempt to please your employees.

What Are the Best Ways to Efficiently Hire Software Developers in Chile?

As mentioned earlier, there are several reasons to hire from this region. According to Statista, the IT outsourcing market in Chile has an impressive annual growth rate of 8.74% and its value will grow to 1 billion dollars by 2029. This information shows that many startups and small companies worldwide add Chile software developers to their workforce. If you also wish to add Chilean software experts to your team, here’s a list of alternatives to do so effectively: 

How Can You Engage Freelance Software Developers in Chile?

IT outsourcing is a big deal in Chile, an industry worth hundreds of millions of dollars. Several platforms, including Upwork and Fiverr, allow you to outsource tasks to developers from this region. These platforms serve as intermediaries between employers and freelancers. Depending on cost and qualifications, they will enable you to choose from a list of talented tech experts. When hiring developers through freelance platforms, you’ll pay on a project basis. 

Platforms such as Workana, Upwork and Freelancer feature profiles of independent developers from Chile. These sites are particularly useful for short-term or project-based needs, where hiring a full-time developer may not be required. By reviewing past projects and ratings, companies can identify high-performing freelance developers with specific tech expertise (e.g., mobile development, data science).

What Are the Best Recruitment Agencies to Hire Software Developers in Chile?

Hiring agencies are another exciting alternative. These recruitment platforms are usually equipped to connect you with the best talent in the region. All you have to do is submit specifications on the type of software developer you’re interested in. You’ll pay the developer based on a contractual agreement when working with recruitment agencies. You’ll also pay the hiring platform for their service monthly or annually or a percentage of the developer’s fees. 

Globy is a reliable hiring agency capable of connecting you with a tech talent pool in Chile. We will help you vet and shortlist the best candidates for your business needs. However, if you can’t hire them directly, we can connect you with a network of EORs that’ll serve as your legal entity and help you handle the legal aspects of hiring software. Our EORs are familiar with Chilean labor law. Hence, they can simplify payroll and tax reporting responsibilities for businesses. 

In addition to Globy, several other reliable recruitment agencies can help you navigate the Chile employment scene. Each has different features and benefits that foreign employers can leverage. They include: 

• SuntechIT Global: SuntechIT Global is a Chile-based recruitment agency focused on providing remote software development talent. They specialize in sourcing developers with a broad skill range, including cloud computing, DevOps, and full-stack development. One of the best features of SuntechIT Global is its reduced time-to-hire. This agency has a streamlined vetting process that evaluates candidates’ technical skills, communication ability, and remote work readiness. 

By filtering candidates through coding tests and communication assessments, SuntechIT can match clients with pre-vetted candidates more quickly than traditional hiring methods. Their team also has deep insights into the Chilean market, particularly in understanding the expectations for competitive salaries, benefits, and workplace culture. 

• Tecla: Tecla is an international staffing agency with a strong presence in Chile and Latin America, offering nearshore outsourcing solutions tailored to North American companies. Tecla connects clients with senior-level Chilean developers experienced in Agile, cloud architecture, and data science.

This agency is renowned for offering employers access to high-quality, experienced talent. Tecla primarily focuses on experienced developers, offering a pool of senior professionals who are well-versed in English and familiar with U.S. work standards. Furthermore, the agency assists with onboarding and provides cultural and technical training to ensure developers integrate seamlessly into client teams, which can speed up the time to productivity. 

• BairesDev: While headquartered in Argentina, BairesDev has a strong base in Chile and provides software development outsourcing services across Latin America. They focus on full-cycle development for clients in sectors like fintech, e-commerce, and SaaS. BairesDev has one of the shortest speeds of placement in the region. 

This recruitment agency claims a time-to-hire of just two weeks due to its extensive talent network across Latin America, including Chile. Their rigorous vetting process also ensures clients get highly qualified candidates ready to integrate quickly. BairesDev has a deep knowledge of the Latin American tech landscape, including trends, salary expectations, and regional compliance requirements, which it uses to streamline both the hiring and onboarding processes for foreign employers.

• Get on Board: Get on Board is a tech-focused job platform widely used in Chile for hiring developers. Though technically not an agency, it functions as a highly specialized platform that allows companies to post jobs directly and screen talent efficiently. With its job portal specifically geared toward tech professionals, Get on Board reduces the cost and time associated with traditional recruiting. 

Many developers in Chile rely on this platform, providing a large talent pool to choose from. The platform also gives employers insights into market rates, typical skillsets, and tech trends specific to Chile, helping companies create attractive job postings and select suitable candidates faster.

Why Should You Consider an Employer of Record (EOR) to Hire Developers in Chile?

Employers of Records serve as legal partners to startups and medium enterprises. They serve as a legal entity and contribute to the hiring process. Because of their familiarity with local laws, EORs can handle your payroll processing tax reporting and register employee benefits with the proper authorities. 

Hiring an Employer of Record (EOR) in Chile can streamline legal compliance for foreign companies while ensuring alignment with local employment regulations, particularly around tax, payroll, and statutory benefits. Chile’s complex employment laws mean that compliance is essential for international companies seeking to avoid penalties, minimize risks, and uphold Chilean labor standards. An EOR manages these responsibilities, including payroll processing, tax filings, and administration of statutory benefits like social security contributions, healthcare, and leave entitlements.

EORs also simplify employment contracts by ensuring they comply with Chilean labor codes, which distinguish between indefinite, fixed-term, and part-time employment contracts. EORs handle onboarding procedures, draft locally compliant agreements, and ensure that contract stipulations, such as the 15-day annual leave and sick leave requirements, are met. Additionally, they manage benefits, including recent statutory increases in minimum wage, currently set at 500,000 CLP, and phased reductions in working hours down to 40 hours weekly by 2028. An EOR can also assist with termination processes, including severance and documentation for fair dismissal practices, which are legally required for all employees outside of high-level roles.

EORs offer advantages by reducing time-to-hire and allowing companies to bypass the lengthy process of establishing a local entity, which can take several weeks and involve high costs. This approach not only supports scalability but also ensures consistent compliance as Chilean regulations evolve. Companies using EORs like Skuad or Boundless benefit from fast-tracked market entry and compliance assurance, making them well-suited to support growth in the Chilean market. 

By leveraging an EOR, companies can focus on strategic objectives while the EOR manages day-to-day employment responsibilities under Chilean law, streamlining international hiring with confidence in legal compliance and employee satisfaction.

Read more: Employer of Record in Chile and Payroll Taxes & Expenses in Chile

Leverage Local Job Portals

Laborum.cl, Trabajando.com, and Computrabajo are widely used by Chilean developers and tech professionals seeking employment. These portals are essential for posting roles that target developers familiar with the Chilean business landscape and can connect you to developers with relevant regional experience. By listing detailed job descriptions, companies can filter candidates based on programming language proficiency (like Java, Python, or JavaScript) and specific tech expertise (cloud computing, Agile, etc.).

Utilize Professional Networking Platforms

LinkedIn is one of the most effective platforms for connecting with Chilean developers. The platform allows you to engage with local tech communities and directly reach out to potential hires. Many Chilean developers maintain LinkedIn profiles with detailed descriptions of their technical expertise, making it easier to assess candidates’ skills and project experience before reaching out. One of the best features about LinkedIn is that it offers specialized filters to target developers with experience in high-demand areas such as AI, cybersecurity, and cloud solutions, which are particularly prevalent in Chile. 

Engage with Local Tech Communities and Meetups

As earlier emphasized Chile has a vibrant tech community with groups on platforms like Meetup.com hosting events for technologies like DevOps, machine learning, and web development. By attending or sponsoring these meetups, companies can meet prospective hires and engage directly with developers who are passionate and active in the tech scene. Additionally, popular tech events, such as Chile Digital and Startup Chile’s Demo Days, allow companies to network with both experienced developers and startup-focused talent who are knowledgeable about emerging technologies.

Partner with Coding Bootcamps and Universities

Coding academies such as Desafío Latam and Academia de Código have become reputable sources for well-trained, job-ready developers. These institutions emphasize practical skills in web development, software engineering, and emerging technologies, making them great sources for junior developers or those with specialized training. Partnering with local universities like the University of Chile and Pontifical Catholic University of Chile, both of whichDesafío Latam have robust tech programs, allows companies to tap into a pipeline of recent graduates with formal education in computer science and engineering.

What Are the Latest Salary Trends for Software Developers in Chile?

If you wish to hire a software developer, it makes sense to find out how much it’ll cost you to do so, depending on the developer you’re interested in. The following list shows how much it costs to hire different software developers per year, depending on their skills: 

The information in these tables shows the average annual salary of Chile’s software developers by calculating the mean value of the salaries for junior, middle and senior developers. The average annual salary for Chileans is lesser than the average annual salary of their counterparts in US, regardless of skill level and experience. 

How to Navigate the Chilean Software Development Market in 2024? 

Due to the several benefits of hiring Chilean software developers, many software companies outsource to experts in the country. This type of tech outsourcing is quite popular in Chile because it costs relatively less to hire developers from the region than in some European countries. While Chile’s tech outsourcing market is worth around 700 million dollars, tech is projected to reach 1 billion by 2029. 

Over the last decade, the Chilean government has introduced several incentives to boost the growth of Chile’s tech ecosystem. One of these initiatives is StartUp Chile, an incubator program launched in 2010. Since its inception, this incubator has provided equity financing and support to startups in Chile. This program significantly contributes to Chile’s reputation as the Silicon of Latin America. Startup Chile has supported the growth of 1,600 startups since 2010. 

Chile also offers several tax incentives for tech companies, thereby creating an environment that promotes the growth of local software developers and other tech professionals. Here’s a list of different initiatives that have been instrumental to the development of Chile’s tech ecosystem: 

• Talento Digital: A government initiative to train young people on trending digital skills. 
• Tech Visa: Chile offers tech visas to investors and entrepreneurs to connect software developers with collaborators. 
• Tech Parks: Chile has its fair share of tech parks, including Hub Apta, Hubtec, Know Hub Chile and Enel Innovation Hub Chile.
• Girls in Tech Chile: Chile’s female-led organization created to support Chilean women in STEM fields. 
• Fundacion Kodea: This program trains teens on coding and other digital skills in a formal setting to enable them to get trending digital jobs. 

Chile has become a development and testing ground for emerging technologies because of its strong tech presence. You’ll find several tech products in the e-commerce, fintech, and renewable energy industries. Many tech companies are eager to operate in this region due to its solid telecommunication infrastructure, high innovation acceptance and high internet penetration rate. 

Venture capitals worldwide are also keen to invest in Chilean startups because of the country’s political stability, stable economy, and track record of successful startups. Consequently, many foreign tech companies are open to collaborating with software developers in Chile. 

Chile has the largest tech workforce in Latin America. Its tech hubs like Santiago attract the most prominent tech brands, including Amazon, Starlink, Google, and Microsoft, who wish to leverage the region’s cast tech infrastructure. Aside from Santiago, other key tech hubs include Valparaiso and Concepcion. These parts of the country also attract big names like Google, Uber and IBM. Concepcion is also renowned for its diversity, focusing on other fields, including cybersecurity, commerce, and digital marketing. 

What Are the Local Hiring Regulations in Chile?

Chile’s labor laws prioritize compliance, with regulations like Law No 21,220 governing remote work, ensuring protections for teleworkers, and defining employer responsibilities. These regulations stipulate that employers must provide written contracts in Spanish, outline working conditions, and support employee rights for remote or hybrid work. Additionally, all companies must comply with laws related to health, safety, and tax contributions for each employee, as well as social security registrations, overseen by the Dirección del Trabajo (Labor Directorate) and the Superintendency of Social Security.

What Are the Tech Market Trends in Chile?

Chile is establishing itself as a regional tech hub, with cities like Santiago becoming innovation centers. In recent years, tech-focused foreign direct investment (FDI) has surged, reaching around $4.3 billion in 2023 and expected to continue growing, with major global firms like Microsoft, Google, and Amazon developing data centers and tech infrastructure. The country’s digital economy represents over 22% of its GDP, positioning it first in Latin America for digital integration, driven by digital services, data centers, and tech exports.

What Are the Government Incentives and Initiatives in Chile?

The Chilean government promotes the tech industry through numerous incentives, including Start-Up Chile, a government-led accelerator that provides funding, mentorship, and resources for tech startups. This initiative aims to attract foreign startups and investors by offering grants and facilitating easier market entry. Additionally, government investments in renewable energy and 5G networks make Chile especially appealing for tech operations that rely heavily on sustainable energy and advanced connectivity, aligning well with the operational requirements of data center and IT infrastructure.

What Are the Key Steps and Benefits of Hiring a Chilean Developer for In-House Roles? 

By now, you’ve learned many impressive details about why you should hire a Chilean software developer. Here’s a list of things to note when hiring a Chilean developer in-house: 

• Taxes: Chilean software developers are expected to pay a progressive rate of 4% – 35.5% depending on the taxable income earned. 
• Leaves: According to Chilean labor law, developers in Chile are entitled to maternity and paternity, sick, and annual leave. However, they may also be offered additional days off, like childcare and bereavement leave. 
• Working Hours: Chile currently runs a 44-hour work week. The working hours will be reduced to 42 hours per week in 2026 and 40 hours per week in 2028. 
• Employee Benefits: Chilean employees are entitled to statutory benefits, including a minimum wage, social security contributions, pension, work accident insurance, disability and survival insurance, gratification and unemployment insurance. 

What Legal Requirements Should You Consider When Hiring in Chile? 

For companies considering in-house hiring in Chile, understanding the tax implications, salary structures, and labor law compliance is essential for successful and compliant operations. Let’s break down each of them to identify how they affect your finances and operations. 

What Are the Tax Implications of Hiring a Software Developer in Chile? 

As a foreign employer in Chile, you’re expected to pay attention to the following tax implications:

• Payroll Taxes: Employers in Chile are responsible for a range of mandatory contributions. Employers must contribute approximately 24% of an employee’s gross salary toward social security, health insurance, and other benefits. This includes 10% for pension contributions (Administradoras de Fondos de Pensiones or AFP), 7% for healthcare (Instituciones de Salud Previsional or ISAPRE), and additional contributions for unemployment insurance.
• Income Tax Withholding: Employers must withhold income tax (Impuesto Único de Segunda Categoría) based on progressive rates for employees. Rates range from 0% for lower-income brackets up to 35% for the highest earners, ensuring compliance with Chilean tax requirements and preventing any tax liabilities for the company and employees.

What is the Salary Structure in Chile? 

Before hiring software developers in Chile, pay attention to the following information regarding the salary structure popularly adopted in the region: 

• Competitive Salaries: Given Chile’s tech market demands, salaries vary based on skills, experience, and job location. For example, mid-level software engineers in Santiago typically earn between $25,000 to $55,000 USD annually. Senior developers may command salaries in the higher end of this range or beyond, particularly for specialized roles such as DevOps or AI .
• Minimum Wage Requirements: The Chilean government mandates a minimum monthly salary of 500,000 CLP (around $615 USD) for full-time workers. This minimum applies universally across sectors and roles, ensuring a base salary standard for all employees in Chile.
• Compensation Packages: In addition to salaries, companies often offer additional perks like health insurance coverage, meal stipends, and transportation allowances. Variable compensation, such as annual bonuses or performance-based incentives, is also common, especially within the tech industry to remain competitive.

Local Labor Law Compliance

The following labor laws guide interactions between foreign employers and software developers in Chile:

• Employment Contracts: Chile requires written employment contracts for all hires, stipulating the position, salary, work hours, and other key terms. Contracts must comply with local laws and be written in Spanish to ensure clarity for employees. Failure to comply with these requirements can lead to fines or legal issues.
• Working Hours and Overtime:  The standard workweek in Chile is 45 hours, with legislation in progress to reduce this to 40 hours by 2028. Employees are entitled to overtime pay at 1.5 times their normal rate for hours worked beyond this threshold. Employers must track working hours accurately to meet legal requirements. 
• Statutory Benefits: Employers are legally required to provide paid annual leave of at least 15 days per year and recognize other benefits, including paid sick leave and maternity/paternity leave. Compliance with statutory benefits ensures that the company avoids legal repercussions and supports employee satisfaction.
• Termination and Severance Pay: Chilean labor law requires that terminations be justifiable, especially for indefinite contracts. Employers must provide severance pay of one month’s salary per year of service for unjust dismissals, capped at 11 months. This ensures employees are protected and underscores the importance of compliance in employment contracts.

How To Attract Top Software Developers in Chile? 

Chile has numerous software development talent but the competition to hire these experts is intense. So, you need to create an attractive job offer to ensure you have the best hands handing your tasks. To attract top software developers in Chile, creating a competitive job offer, appealing benefits package, and effective company branding are essential. Here’s a breakdown of strategies to stand out in Chile’s growing tech job market.

Offer Competitive Salaries Aligned with Local Market Rates

It’s common knowledge that Chilean software developers earn competitive salaries, with experienced developers in Santiago, for instance, earning between $25,000 and $55,000 USD annually, depending on expertise and seniority. Offering salaries that align or exceed these benchmarks is key, especially for roles requiring specialized skills like cloud engineering or data science.

Aside from sizeable payment compensation, you also need to emphasize opportunities for career progression. Developers in Chile value roles that clearly define growth paths and periodic raises, making salary transparency a significant factor.

Craft Attractive Benefits Packages

Chilean developers highly prioritize health insurance benefits and you can stand out by offering supplementary private health insurance plans and retirement contributions, beyond the mandatory social security requirements. Following Chile’s Law No. 21,220 on remote work, flexibility has become a valuable perk. Most Chilean developers now expect remote or hybrid work options. Companies should highlight flexible hours, remote work arrangements, or coworking space allowances to appeal to candidates.

If that is not enough, Chilean developers often seek continuous learning opportunities. So, offering sponsorship for tech certifications, online courses, or conference attendance can differentiate your job offer. By granting them access to platforms like LinkedIn Learning, Pluralsight, or covering certification costs (e.g., AWS, Google Cloud) you, show a clear commitment to their growth.

Build a Strong Employer Brand

Because of the nature of the local work culture, Chilean professionals are drawn to companies that foster inclusion and prioritize team collaboration. Highlighting company values around teamwork, innovation, and diversity in recruitment materials and on platforms like LinkedIn can attract developers aligned with these values.

Many Chilean developers look for job stability and potential pathways to international projects or markets. As a result, you can emphasize longevity and cross-border opportunities for project involvement or training. Publicizing partnerships or global projects can underscore these possibilities.

Also, ensure to market your open positions on popular platforms like Get on Board or Bumeran, widely used by Chilean tech professionals. Engaging with local developer communities and events, such as those hosted by Start-Up Chile or Santiago’s developer meetups, can also boost visibility.

Positioning Competitive Perks as Part of Company Culture

The tech workforce in Chile values work-life balance highly. Offering unlimited vacation days, paid parental leave, and wellness programs are standout perks. Chile’s cultural norms favor benefits that respect personal time, so make it clear that your company prioritizes balance.

As sustainability and social responsibility become more prominent, Chilean developers are drawn to companies with solid ESG practices. By promoting any eco-friendly practices or community initiatives, you can appeal to talent who value positive societal impact.

Read more: Work Hours in Chile

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Article author

Vit Koval

Co-founder at Globy

A top Global Hiring voice on LinkedIn, co-founder of Globy, and host of Default Global. Using deep expertise in global hiring, remote work, and global business expansion to help companies excel worldwide with innovative strategies.