Chile is one of the fastest-growing economies in Latin America. The nation has flexible income tax laws, making it a hotbed of business opportunities for foreign investors.
The average salary in Chile is 1,870,000 Chilean Peso (CLP) or 2,338 US Dollars per month (based on the exchange rate in April 2023). However, the average income differs based on the individual’s qualification, job title, and work location.
In this article, we’ll discover the average salary in Chile and how it differs across various factors. We’ll also compare it against the average salaries of other countries worldwide and highlight five impressive reasons for outsourcing to Chile.
Table of Contents
- What is the average salary in Chile?
- Salary comparison in Chile
- Average monthly salary in Chile vs. the world
- 5 remarkable reasons for outsourcing to Chile
Let’s get started.
What is the average salary in Chile?
According to Salary Explorer, the average salary in Chile is 22,400,000 CLP per year. This amount usually includes standard employee benefits like transport, medical, and housing.
Chile has witnessed tremendous growth in terms of GDP per capita since 2009. It offers lucrative job opportunities in the service industry such as banking, communications, retail trade, engineering, medical, etc.
The country’s labor force also benefits from thriving natural resources industries like forestry, copper mining, agriculture, and aquaculture.
However, the compensation and allowances offered by an employer differ across various work sectors. For instance, a chartered accountant can earn 1,650,000 CLP, whereas an aerospace engineer can earn a higher salary, making up to 2,420,000 CLP per month.
For a better understanding, let’s discover some other aspects of the Chilean salaries:
1. Salary range
The average salary in Chile ranges from 4,73,000 CLP per month (actual minimum salary) to 8,340,000 CLP per month (actual maximum salary).
The country’s highest salary is higher than the maximum average salary.
2. Median salary
The median salary in Chile is 1,690,000 CLP per month.
In other words, 50% of the Chilean employees earn less than 1,690,000 CLP and the remaining 50% earn more than 1,690,000 CLP.
3. Salary percentile
The salary percentile indicates how much a certain percentage of the total population in any country makes. The most commonly used salary percentiles are the 10th, 25th, 50th, 75th, and 90th.
According to the 2023 salary survey reports by Salary Explorer, 25% of the Chilean working population earn less than 1,220,000 CLP and the remaining 75% make more than 1,220,000 CLP.
The income distribution report also shows that 75% of the workforce earn less than 2,570,000 CLP and the remaining 25% make more than 2,570,000 CLP.
4. Average annual salary increment
Typically, employees in Chile are likely to observe a salary increase of approximately 7% every 19 months.
However, the annual salary increment rate is also determined by the employee’s work experience and job title:
A) Experience
Employees in senior-most managerial positions (Chief Executive Officers, CFOs, CIOs, etc.) get a higher increment rate as they’re tougher to recruit and retain.
| Experience Level | Average Annual Salary Increment Rate |
| Top Management | 15% – 20% |
| Senior Level | 10% – 15% |
| Mid-Career | 6% – 9% |
| Junior Level | 3% – 5% |
Source: salaryexplorer.com
B) Industry
As a general rule, employees in prosperous industries like real estate and tourism get higher and more frequent raises.
Here’s how the increment rate differs across various sectors:
| Industry | Average Annual Increment Rate |
| Travel | 8% |
| Banking | 7% |
| Construction | 6% |
| Energy | 5% |
| Education | 4% |
| Information Technology | 3% |
| Healthcare | 1% |
Source: salaryexplorer.com
5. Average hourly wage
The average wage per hour for any Chilean worker is 10,800 CLP. In other words, the average employee in Chile makes approximately 10,800 CLP for every working hour.
6. Minimum wage
Minimum wage refers to the minimum amount an employer must pay wage earners for their working hours during a given period.
Based on the data of Minimum-Wage.org, the yearly minimum wage in Chile is approximately 3,120,000 CLP per month in 2023. The minimum wages were last updated in January 2017.
Salary comparison in Chile
The average salary in Chile differs mainly depending on the individual’s educational qualification, work location, expertise level, and other factors.
Let’s check out the average income in Chile based on these criteria:
1. Professional experience
Work experience largely determines a person’s income in Chile. Naturally, higher experience equals higher pay in Chilean organizations.
Here’s how the salary differs for different working professionals in Chile:
- All employees with two to five years of experience earn on average 32% more than entry-level and junior employees across all job sectors.
- Any employee with over five years of experience is likely to make on average 36% more than anyone with five or lesser years of work experience.
- All employees with 10+ years of experience get a salary increment of 21%, and those with 15+ years of experience earn 14% increment rate.
2. Employee education
Here’s what Chilean employees with different educational qualifications earn:
- Working professionals with a diploma or higher education certificate earn 17% more than their colleagues who have only completed high school level education.
- Employees with a Bachelor’s Degree earn 24% more than those who acquire a certificate or diploma.
- All employees possessing a Master’s Degree earn 29% more than those who complete a Bachelor’s course.
- All working professionals having a Ph.D. in their relevant work field earn 23% more than those with a Master’s Degree.
3. Government vs. private sector
Chilean employees in the public sector earn on average 7% more than their private sector counterparts across various work disciplines.
The 2021 salary survey reports by Salary Explorer clearly reveals the difference in the salary earned by public sector and private sector employees.
| Public Sector | Private Sector |
| 1,950,000 CLP | 1,820,000 CLP |
Source: salaryexplorer.com
4. Career
The average annual salary for employees in Chile varies depending on the scope and demand of their career field. Some of the highest-paying jobs are in media (average income of 166,233,372 CLP) and law (average income of 98,376,545 CLP).
Here’s what different professions in Chile can make on average annually:
| Job Title | Average Annual Salary |
| Account Manager | 50,258,444 CLP |
| Business Development Manager | 45,105,764 CLP |
| Project Manager | 45,026,492 CLP |
| Human Resource Coordinator | 41,776,341 CLP |
| Software Engineer | 33,056,421 CLP |
| Financial Analyst | 30,995,349 CLP |
Source: averagesalarysurvey.com/chile
5. City
Different cities in Chile offer different salaries depending on their level of development and monthly costs of living.
Here’s a list of the average salary in different cities in Chile:
| City | Average Annual Salary |
| Santiago | 2,170,000 CLP |
| Puente Alto | 2,120,000 CLP |
| La Florida | 2,050,000 CLP |
| Valparaiso | 1,950,000 CLP |
| San Bernardo | 1,860,000 CLP |
Source: averagesalarysurvey.com/chile
Average monthly salary in Chile vs. the world
Chile annual household income on average is 22,400,000 CLP in local currency.
The yearly and monthly compensation is way lower than the developed countries in North America (United States, Canada) or Western Europe (United Kingdom, Germany).
As per the World Bank data, the pandemic had an adverse impact on the country’s GDP, bringing it down by 6% – much like other countries in South America.
Despite making great strides in combating poverty and keeping the unemployment rate at the lowest level possible, the country continues to struggle with issues of high-income inequality.
Here’s how Chile compares against other countries in terms of average monthly salary:
| Country | Average Monthly Salary |
| Chile | 2,318.80 USD |
| United States | 7,900 USD |
| United Kingdom | 7,760.94 USD |
| New Zealand | 5,509.82 USD |
| Austria | 4,115.67 USD |
| South Korea | 3,142.61 USD |
| Peru | 2,010.85 USD |
| Ecuador | 1,360 USD |
| Uruguay | 773.36 USD |
| Argentina | 416.78 USD |
Source: salaryexplorer.com
Note: The above-mentioned salary figures are averages derived from salary reports of employees in Chile, including expats. Consequently, they may vary depending on experience, cost of living in specific locations, industry, etc., and only serve as a general guideline.
Now that we understand the various factors influencing the average income in Chile, let’s check out the top reasons for choosing Chile for your outsourcing needs.
5 remarkable reasons for outsourcing to Chile
Here’s what makes Chile the perfect outsourcing destination:
1. Skilled and talented employees
The Chilean Government has introduced several initiatives in the past couple of decades to upgrade the country’s educational system. For example:
- The 900 Schools Program was implemented to improve the quality of education for children at the junior and middle school levels.
- The Enlaces Program seeks to leverage innovative technologies in information and communication to enhance the teaching and educational experience.
Consequently, the country has been nurturing great talent at school and university levels, most of whom secure lucrative work opportunities in the software and IT sector.
So any foreign business seeking offshore software development services can benefit from the quality of talent churned out by Chile’s top academic institutions.
2. Top-notch IT infrastructure
Chile, and the city of Santiago in particular, has been pioneering in areas such as the Internet of Things, big data, sensor applications, and others.
As per the Global Innovation Index 2021 report, Chile is the most innovative economy in Latin America.
The presence of premier research facilities and technology parks in Chile encourages foreign investors to outsource their business operations with confidence. Chilean employees receive adequate training to hone their technical skills and offer best-in-class outsourcing services.
3. Shared time zone with North America
North American companies, especially in the United States, can profit by outsourcing their operations to Chile instead of China or India. Unlike the massive time difference with these Asian countries, there is zero time difference between Chile and the USA East Coast.
It makes it easier for businesses in New York and Washington D.C. to connect with their outsourcing agents in real-time, get quick updates on project progress, and improve operational efficiency.
4. Favorable government schemes
The Chilean Government continues to introduce policies and incentives to attract international organizations and traders.
In 2017, Chile introduced the Tech Visa. It allows foreign investors from New York, Berlin, or anywhere worldwide to acquire a work visa in just 15 days and expedite all business decisions.
Chile published Law No. 21.256 on 2nd September 2020 to encourage foreign investment and reduce the general corporate income tax rate for small and medium-sized enterprises.
Besides, employees are given enough incentives (healthcare insurance, social security contributions, tax return benefits) that motivate them to deliver quality outsourcing services.
5. Cost-effective
Hiring a US developer will cost you approximately 89,600 USD, whereas recruiting a Chilean developer will cost you around 2,284.75 USD.
So besides saving a substantial amount, you can be assured of receiving quality work at competitive prices by outsourcing work to Chilean teams.
Moreover, Chile is a relatively new player in outsourcing markets, making its pricing comparatively cheaper than other outsourcing destinations like Thailand or Singapore. In fact, as per the 2021 Statista report, the average annual wage in Chile has been fairly constant from 2015 to 2020 and has not seen any drastic increase.
Final thoughts
Quality tech talent, innovative IT infrastructure, and low corporate tax rates make Chile a favorable outsourcing destination in South America.
Moreover, the inflation rate of Chile is projected to decrease by more than 3% in 2023, making it even more profitable for foreign investors and traders.
However, before choosing your outsourcing partner, you’ll need to consider your business requirements and if the third-party agent can fulfill your objectives.
You can go through this article for details about the average salary in Chile and make the right choice for your business.
