Understanding the Chilean finiquito
If you work in Chile under a local employment contract — as a resident, expat or digital nomad — your employment can only end through one of the legal causes in the Labour Code, and the employer must settle everything owed in a signed document called the finiquito. What goes into it depends on the cause of termination, and that is what this calculator models for 2026.
Three payouts drive most of the money:
- Years-of-service severance (IAS) — 30 days of pay per year of service, owed only when the employer terminates for business needs or by employer notice (art. 161).
- Payment in lieu of notice — one extra month when art. 161 is invoked without a written 30-day notice letter.
- Proportional vacation — the holiday accrued since your last work anniversary, owed under every cause, including resignation.
Days actually worked in the final month are always paid too, but they belong to your regular payslip, so the tool leaves them out.
2026 rules at a glance
| Item | Rule for 2026 |
|---|---|
| Severance (IAS) | 30 days of pay per year of service; a fraction above 6 months counts as a full year (art. 163); requires at least 1 year of service |
| Year cap | 11 years (330 days) for contracts signed since 14 Aug 1981 |
| Base cap | The monthly base is capped at 90 UF (art. 172): about CLP 3,676,031 at the 09 Jul 2026 UF of CLP 40,844.79 |
| Notice pay | 30 days of pay, same 90 UF cap, only when no letter was given |
| Vacation | 1.25 working days per month since the last anniversary, converted to calendar days; the 90 UF cap does not apply |
| Taxes | Statutory payouts are not taxable income (art. 178): no income tax, no social-security deductions |
The base is your full last monthly remuneration (salary, monthly gratificación, benefits in kind), excluding overtime and one-off bonuses. If your pay varies, use the average of the last 3 months.
How to use the calculator
Pick the termination cause first — it switches severance and notice pay on or off. Then enter your last monthly pay, the start and end dates, and the UF value for the end date (the UF changes daily; the tool preloads CLP 40,844.79 from 09 Jul 2026 — check sii.cl). Optional fields cover the 30-day notice letter, untaken vacation from completed years, and the employer’s AFC unemployment-account deposits, deductible from the severance under art. 13 of Law 19,728.
Worked example
Dismissal for company needs (art. 161), salary CLP 900,000, hired 16 Jan 2022, contract ends 31 Jul 2026, no notice letter, vacation up to date:
- Service: 4 years, 6 months and 15 days. The fraction exceeds 6 months, so 5 years count (below the 11-year cap).
- The base stays at CLP 900,000, well under the 90 UF cap (CLP 3,676,031).
- Severance: 5 × 900,000 = CLP 4,500,000.
- Notice pay (no letter): CLP 900,000.
- Vacation since the 16 Jan 2026 anniversary: 6 months and 15 days → 6 × 1.25 + (15 ÷ 30) × 1.25 = 8.125 working days. Counted on the calendar from 01 Aug 2026 they span 12.125 calendar days → (900,000 ÷ 30) × 12.125 = CLP 363,750.
- Estimated total: CLP 5,763,750, fully exempt from tax and contributions (art. 178), plus the unpaid July workdays.
Frequently asked questions
I resigned — do I get anything?
Yes. Resignation forfeits severance and notice pay, but proportional vacation and your unpaid days worked are always owed. The calculator shows exactly which rows apply when you select resignation.
Why does the tool convert working days into calendar days?
Chilean vacation accrues in working days (Saturday does not count) but is paid over the calendar span those days occupy, weekends and holidays included. The tool counts from the day after termination using Chile’s 2026 national holidays; dates outside 2026 use a weekend-only approximation.
Is the finiquito taxed?
Statutory severance, notice pay and vacation are not income under art. 178 of the Labour Code, so nothing is withheld. Voluntary severance or amounts above the legal caps can be taxed (art. 17 No. 13 of the income tax law) — outside this tool’s scope.
What if a court finds the dismissal unjustified?
A labour court can add a 30% to 100% surcharge on the severance (art. 168). The calculator does not include surcharges because they require a ruling.
Where do the caps come from?
The 90 UF base cap and the 11-year cap come from arts. 172 and 163 of the Labour Code. Because the UF is indexed daily, the peso value of the cap moves every day — that is why the tool asks for the UF on your end date.
This is an informational estimate under the 2026 rules, not legal advice; the binding amounts are those in the finiquito you sign before a notary or labour inspector. Official source: Dirección del Trabajo (dt.gob.cl). Review yearly — the UF, caps and criteria change over time.