Chile displays a strong economy and well-maintained roads, bridges, and buildings. It has good relationships with other countries, which facilitate company growth. The average salary in Chile is 1,850,000 CLP per month, around 1917.10 USD.
In this article, we explore what is the average salary in Chile, the minimum wage, cost of living and understand wage differences in Chile by salary comparison.
What is the Average Salary in Chile?
According to the National Statistics Institute of Chile (INE), the average salary in Chile is 1,850,000 CLP per month, around 1917.10Â USD.
The average annual salary in Chile is 22,450,000 CLP, which is approximately equivalent to 22,450,000 USD.
Minimum Wage in Chile
According to the Chile Ministry of Labor and Social Security, the minimum wage in Chile is 472,950 CLP.
This implies that in Chile the minimal wage is approximately USD 490.10 converted from Chilean pesos (CLP). It is the smallest amount of money that cannot be avoided by the law that employers must pay to their workers in Chile.
Therefore, the minimum wage is guaranteed so that employees can handle the costs they have even loving their basic needs without the type of job they are doing.
Median Salary
According to Salary Explorer, the median salary in Chile is 1,690,000 CLP, corresponding to 1751.30 USD based on the current exchange rates.
This figure is the exact middle point of the range of salaries received by the Chilean workers, demonstrating that half of the workers earn more than this amount and the other half earn less. It is a sign of how much people usually earn in the country, taking into consideration different occupations and industries.
Maximum Salary
The maximum salary in Chile is 8,340,000 CLP, which is approximately equivalent to 8642.49 USD.
This figure stands for the maximum income potential for workers in Chile, which covers the top level of pay scales within the country across all occupations and business sectors. It shows the probability of the existence of high-income workers in the Chilean labor market.
Understanding Wage Differences in Chile by Comparing Salaries
The question of why workers are paid differently in Chile should be answered by an depth investigation of what people are paid for and why they are paid the amount they are.
Through salary comparison, we can understand how people get paid more or less in Chile. We’ll take a look at the factors such as education, work experience, and place of residence that impact how much people get paid. This makes us clear as to why the wages can be different for different Chilean jobs.
Salary Comparison by Education
People love to hear that with more education they expect to earn more on the job, but exactly how much cash can you make with a degree?
We did a study case in Chile and in it, we focused on how much people that were working in different jobs were making. We chose the education levels that they had and compared their earnings.
The data we came across showed that those who hold a certificate or diploma would earn roughly 17% more than those who just finished their high school education.
In case you finished a Bachelor’s Degree, you might likely earn about 24% higher than someone with simply a certificate or diploma.
And if you are not thrilled with the idea of getting a Master’s Degree, your salaries would be 29% higher compared to someone with just a Bachelor’s Degree.
The last point to add is that if you possess a PhD, you will earn approximately 23% more than someone with a Master’s Degree. And this could be true even if you are performing the same job.
Salary Comparison by Years of Experience
Normally, the amount you earn is determined by how long you have been working. The more senior you are, the higher the salary you will usually receive.
Speaking of Chile, after two years of working you probably earn more than a person who is just starting or is a junior no matter what his or her job is
If you have more than 5 years of experience, your monthly salary can be up to 36% higher than that of others who have less experience.
After 10 years of work, it is possible that your wages would increase to about 21%. In case you have been working for over 15 years, then you can expect that your salary will be increased by 14% more than before.
But you have to keep in mind that they are only approximate. Particularly, looking at individual job titles can give you a better insight into how much money a person might earn.
Salary Comparison by City
| City | Average Salary in (CLP) |
|---|---|
| Antofagasta | 2,000,000 |
| Concepcion | 1,760,000 |
| La Florida | 2,060,000 |
| Rancagua | 1,730,000 |
| Valparaiso | 1,950,000 |
Source: Salary Explorer
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Salary Comparison by Industry
| Industry | Average Monthly Salary in (CLP) | Average Annual Salary in (CLP) |
|---|---|---|
| Information Technology (IT) | 1,930,000 | 23,100,000 |
| Customer Service and Call Center | 1,350,000 | 16,200,000 |
| Teaching | 1,960,000 | 23,500,000 |
| Government and Defense | 2,040,000 | 24,500,000 |
| Maintenance/ Repair | 1,250,000 | 15,000,000 |
Source: Salary Explorer
Cost of Living in Chile
The cost of living in Chile varies depending on factors like housing, transportation, and groceries.
Restaurants
At catering it is difficult to say what the price will be because they might raise. A simple meal can sometimes cost up to 5000 CL$ and a very good one can be up to 90000 CL$. The price of the Burger King can be from 6,000 to 8,500 CL$.
Markets
There is a variety of prices that you pay for your groceries. Take the example of a liter of milk which may be 880 to 1,300 CL$ or a loaf of bread which may be from 800 to 2,650 CL$. The cost of chicken fillets ranges from 3,000 to 9,000 CL$ per kilogram.
Transportation
Traveling expenses are still a problem too. The cost of a one-way local ticket is about 550 to 1,000 CL$, while a monthly pass might vary between 32,000 and 50,000 CL$. Average gasoline prices are 1100 to 1400 CL$ per liter.
Utilities
Utilities for such a flat, when it comes to electricity and water, can be 60,000 to 200,000 CL$. Cell phone service with both calls and data will cost between 9,990 and 15,000 CL$, and Internet services will cost between 15,000 and 30,000 CL$.
Rent
The rent for a house or an apartment can be very different, depending on the location and the quality of the place. The price of a 1-bedroom apartment downtown can range from 300,000 to 650,000 CLP$, meanwhile, a 3-bedroom apartment is at 521,413,410 CLP$ to 1,200,000 CLP$.
Salaries and Financing
But, the net monthly salary after taxes is approximately 606,527.61 CL$. When making up your mind to buy a house, mortgage interest rates range from 4.00% – to 7.50% per annum for a 20-year loan.
Is Chile the Right Outsourcing Destination for Your Business?
Chile has great infrastructure for outsourcing work as it has a strong economy, quality roads and buildings, and a lot of intelligent people. It is in a great location on the map and it is easy for the companies in North America and Europe to do business with it. Chile also offers attractive agreements with other countries that can help businesses to reach out the globe.
Chilean workers are highly skilled and unfortunately, they don’t make a fortune, which is great for jobs such as IT, customer care, or finance. The government of Chile assists companies that innovate and that have new ideas as well as technology. This makes it even more pleasant for outsourcing.
However, before outlining a choice, companies should take into account such aspects as language, and culture, and strictly follow the best practices. Through a study of positive and negative aspects, companies can determine whether the Chilean environment is the most suitable for their outsourcing plans.
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Conclusion and Final Thoughts
Chile is a great place for outsourcing because it has a strong economy and lots of skilled workers. It’s important to know about wage differences and cultural factors.
Using helpful tools like Time Champ can make businesses run smoother in Chile. Take advantage of the chances for growth and new ideas in outsourcing that Chile has to offer.
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Also Read
What is the Average Salary in Japan: The Economic Outlook
The Average Salary In Finland: Comparisons And Outsourcing
What is Outsourcing? and the Top Outsourcing Companies in the World
How to Manage a Remote Workforce for Maximum Efficiency?
What is the Average Salary in South Africa? and Outsourcing Trends
FAQ’s
In Chile, we may observe different levels of wages, and there exist many factors which lead to such variations. Education level is an important fact at last. People with Higher degrees usually have higher salaries. Secondly, the seniority is also an important factor. People with higher competencies, who are there for a longer time, earn more than those who are fresh and have just started working. As a result, place of living also determines wealth, as it affects your wages.
The cost of living in Chile is very important as to how much people are earning and how they are spending their money. Home, transport, and meals can be different in different areas. If you live in a place with high living costs, you could end up paying most of your salary for rent, food, and other essentials, leaving hardly anything for entertainment or savings.
When considering Chile as a destination for outsourcing, companies should pay attention to some crucial factors. First of all, Chile has a solid economy and a good infrastructure which is what makes businesses prefer to do business in Chile. People there are well-educated, and the government supports new ideas and technology, therefore this place is good for finding skilled manpower.
Time Champ is the tool of choice for businesses in Chile to increase productivity and to get the most out of their resources. It has a lot of features that allow you to keep up with productivity, manage projects, and track tasks. Through the Time Champ, companies will receive detailed reports that illustrate the way individual employees perform their duties and how various projects are being carried out.
Absolutely! Time Champ can be tailored to meet the unique requirements of companies doing business in Chile. The software comes with customizable features, allowing businesses to adapt it to their specific workflows and productivity objectives. Whether it is project management tools, task tracking functions, or reporting features, Time Champ can be customizable to address these requirements. Besides, Time Champ’s user-friendly interface helps companies to make these adjustments according to their requirements. Time Champ is one of the flexible software that businesses in Chile can utilize to enhance productivity and achieve their outsourcing goals.
