Complete guide: Termination settlement · Chile
Updated:
Art.161: at least one year of service, one month/year or remainder over 6 months, maximum 11 months and base capped at 90 UF. Missing notice: one month. Use art.172 base and prior-month UF. Pre-1981-08-14 hires, special protections and judicial increases excluded.
Private employment under the Labor Code. Contribution caps use UF; monthly tax uses UTM. There is no general mandatory private-sector annual bonus.
Estimates in local currency, without conversion. Document review: 2026-10-23; laws, tables and monetary units are not automatically synchronized. Default salaries are examples, not legal minimum wages. Check your contract, collective agreement and payslip before making decisions.
Sources and legal scope
Document review: 2026-10-23
How it works
- 1Settlement = applicable indemnity + notice + service benefits + accruals − received payments.
- 2Separate salary bases, accrued entitlements and payments already received.
- 3Compare the result with the sources and the stated employment scenario.
Frequently asked questions
Which Chile rules apply?
Art.161: at least one year of service, one month/year or remainder over 6 months, maximum 11 months and base capped at 90 UF. Missing notice: one month. Use art.172 base and prior-month UF. Pre-1981-08-14 hires, special protections and judicial increases excluded.
Is this a final tax filing or employment claim calculation?
Private employment under the Labor Code. Contribution caps use UF; monthly tax uses UTM. There is no general mandatory private-sector annual bonus.
Are inputs preserved when sharing?
Yes. The link retains entered amounts and options. Laws may change; check the date and sources.