What the “gratificación legal” is (Article 50, Chile)
If you work in Chile — as a resident, expat or digital nomad on a local contract — your payslip probably shows a line called gratificación legal. It is a mandatory profit-sharing payment, not a discretionary bonus. Mining, industrial, commercial and agricultural companies (and profit-seeking cooperatives) that keep formal accounting and post net profits for the year must share them with employees (Article 47 of the Chilean Labour Code).
Employers can satisfy the obligation in one of two ways, chosen each year and even per employee:
- Article 47: distribute at least 30% of the year’s net profit among workers, in proportion to what each earned. No per-worker cap, but the amount depends on real profits and is settled once a year, usually in April after the corporate tax return.
- Article 50: pay each worker 25% of their monthly earnings, capped at 4.75 monthly minimum wages (IMM) per year. Paying this way releases the employer from Article 47 entirely, no matter how large the profit was.
Almost every Chilean employer picks Article 50 because it is predictable and is usually paid monthly. This calculator handles Article 50; Article 47 cannot be computed without the company’s books.
How to use the calculator
- Enter your gross monthly pay: base salary plus taxable bonuses and commissions, excluding the gratification line itself.
- Optionally enter the gratification you already receive each month to check it against the legal minimum.
- Pick the period of the year — Chile’s minimum wage changed mid-2026 with retroactive effect (see the table).
You get the 25% figure, the monthly cap, the gratification actually owed (the lower of the two), the projected yearly total and the gap versus your current payslip.
2026 figures
| Item | Value (CLP) |
|---|---|
| Minimum wage, May–December 2026 (Law 21.830) | $553,553 |
| Minimum wage, January–April 2026 | $539,000 |
| Annual Article 50 cap (4.75 × $553,553) | $2,629,376.75 |
| Monthly cap (annual cap ÷ 12) | $219,114.73 |
| Monthly cap, January–April (wage $539,000) | $213,354.17 |
The monthly formula is gratification = min(25% × monthly pay, 4.75 × minimum wage ÷ 12). The annual settlement uses the minimum wage in force on December 31, so amounts paid earlier in the year at a lower cap must be topped up.
Retroactivity warning: Law 21.830 was published on June 22, 2026 but applies from May 1, 2026, so capped gratifications for May and June had to be re-settled with the $553,553 wage.
Worked example
Monthly pay of $800,000 (July 2026): 25% is $200,000, and the monthly cap is 4.75 × 553,553 ÷ 12 = $219,114.73. Since $200,000 is below the cap, the month’s gratification is $200,000, projecting to $2,400,000 for the year — under the annual cap.
Monthly pay of $1,500,000 (July 2026): 25% is $375,000, which exceeds the cap, so the gratification is the cap itself: $219,115 (rounded to the peso). Over a full year that is $2,629,377 — the most any salary, however high, can receive under Article 50.
Frequently asked questions
Is the gratification taxed and subject to social security?
Yes. Article 50 gratification is regular taxable remuneration: it goes into the base for AFP pension, health and unemployment contributions, and into the monthly income tax (impuesto único) of the month it is paid.
Can my employer stick to Article 50 even with huge profits?
Yes. Paying 25% capped at 4.75 minimum wages fully discharges the obligation regardless of profit. It is legal and standard practice, even when a 30% profit share would have paid more.
What if the company made no profit?
The legal duty to pay a gratification only arises when the company posts net profits for the year. With no profits there is no statutory gratification — unless your employment contract guarantees one as an agreed benefit, which then stands on its own.
My payslip shows a different amount. Why?
Common reasons: the employer computes 25% on a narrower base (base salary only), has not re-settled the retroactive 2026 minimum-wage increase, or pays under Article 47 instead. If you receive less than the Article 50 minimum you agreed to, you can file a claim with the Dirección del Trabajo (labour authority).
This is an informational estimate with the values in force in 2026, not legal or tax advice. Sources: Chilean Labour Code (arts. 47 and 50), Law 21.830 and the Dirección del Trabajo. Review the figures yearly: the minimum wage adjusts by law, with an automatic CPI-based raise due on January 1, 2027.