Payroll Services in Chile: 5 Top Providers for 2026

Key Payroll Services in Chile

Below, I’ll talk a bit more about building blocks you should expect from any payroll partner in Chile – with the local nuances that tend to bite teams right when you’re trying to scale calmly.

Payroll calculation and payslip management

Your payroll provider in Chile should run clean gross-to-net calculations, separate taxable pay from non-taxed allowances (where applicable), and apply the progressive employment income withholding rules (often referred to as Second Category Progressive Tax) consistently across each payroll cycle.

On the documentation side, expect proper payslips with itemized pay and deductions, plus compliant record keeping. Some employer obligations also extend to maintaining formal payroll records (often described as a payroll ledger) that reconcile what was paid vs what was withheld and later remitted.

Chile also uses indexed units (notably UF and UTM) across multiple thresholds and caps, so a good provider updates these inputs as they change, instead of leaving you with “last month’s logic.”

Payroll payments and reconciliation

I might say that payroll payments in Chile resemble a three-way handshake: net salary to the employee, statutory withholdings to the appropriate institutions, and reconciliation to ensure the numbers match.

A strong payroll operation should give you:

predictable payroll cycle management (cutoffs, approvals, rerun rules);
clean reconciliation between payslips, banking requirement payments, and statutory filings;
audit-friendly records that let finance trace any number from a payslip, payment, or contribution remittance.

Statutory contributions

Chile payroll is heavy on statutory withholdings and employer payroll contributions, and many are capped using UF-based limits. Look at the table below to understand what typically sits inside payroll administration:

Payroll Item (taxes & social contributions)	Rates	Who pays	What it means in payroll operations
*Employment income withholding (progressive “Second Category” payroll tax)*	0%-40%, progressive by monthly income brackets (indexed to UTM (Unidad Tributaria Mensual))	Employee (withheld by employer)	Monthly withholding must match the current bracket table and taxable base to keep net pay correct.
*Pension (AFP mandatory contribution)*	10% of monthly taxable salary (cap is UF-based and updated periodically)	Employee	Requires correct taxable base, cap handling, and AFP selection logic.
*AFP management fee (commission)*	About 0.47%-1.54% (varies by AFP)	Employee	Must be applied with the employee’s chosen AFP; fee differences can change net pay.
*Health (FONASA* or ISAPRE)**	7% of monthly taxable income (cap is UF-based and updated periodically)	Employee	Needs correct routing to FONASA or the employee’s ISAPRE and correct cap handling.
*Unemployment Insurance (Seguro de Cesantía* */ AFC)*	Indefinite contracts: employee 0.6%, employer 2.4% (employer share typically split between individual + solidarity funds). Fixed-term / specific work: employee 0%, employer 3%. Caps are UF-based and updated periodically.	Employee + employer (depends on contract)	Requires correct employee classification by contract type and accurate split to the right funds.
*Disability & survivors insurance (SIS)*	1.47% of taxable salary (uniform rate noted in official guidance; may be updated over time)	Employer	Must be applied on top of salary costs and reconciled with pension-related remittances.
*Workplace accident & occupational disease insurance (Law 16.744)*	0.9% base rate + a risk-based additional rate that can’t exceed 3.4%	Employer	Rate can vary by company activity/risk; provider should manage the correct rate and supporting records.

Sources: KPMG, InvestChile, Taxsummaries

Payroll should feel boring. If this table made it feel like a monthly risk review, that’s a strong signal to lean on a provider with Chile expertise to lift a tax burden from your shoulders.

Payroll companies in Argentina can help you if you face the same problems there!

Mandatory benefits management

Many benefits that payroll outsourcing in Chile must handle have direct payroll consequences: eligibility, accruals, statutory payments, and termination-related amounts.

At a minimum, your payroll service provider in Chile should support:

Annual leave rules under the Chilean Labour Code (for example, the Labour Code sets a 15-working-day annual holiday baseline, with increases tied to years of service).
Maternity protections and leave tracking (Chile’s legal structure includes prenatal and postnatal leave entitlements, with defined extensions in specific cases).
Termination-linked payments and statutory logic (including the severance model often described as one month per year of service, with caps, and interactions between unemployment insurance and retirement social severance pay under certain conditions).
Sala Cuna (daycare) administration triggers, where obligations can apply once an employer reaches a defined threshold of women employees (one of those “surprising” compliance items that can become expensive if missed).

Payments management via the PreviRed platform

In Chile, payroll “done” means not just salaries paid, but also statutory payments successfully declared and remitted. A key operational piece here is the PreviRed platform, which is commonly used to declare and pay pension and health insurance contributions online.

Your provider should be able to:

prepare contribution data in the right structure for PreviRed workflows;
ensure pension/health remittances align with payroll calculations and caps;
coordinate the pieces that sit outside that flow (for example, such payment methods as unemployment insurance are managed through the unemployment fund administrator structure).

Add-on Payroll Services in Chile

While core payroll services get people paid, these add-ons I’ll be talking about are what keep payroll scalable: when you’re hiring without a local entity, tightening compliance, or trying to stop payroll administration from ballooning into a full-time internal project.

Employer of Record (EOR)

An Employer of Record (EOR) provider becomes the legal employer of your workers on paper, while you still manage day-to-day work. In Chile, that’s especially useful when you need to hire fast but don’t want entity setup to dictate your roadmap.

Typical EOR scope as an add-on to payroll processing includes:

locally compliant employment administration under the Chilean Labour Code (Código del Trabajo) (contracts, onboarding files, ongoing record keeping);
payroll taxes and social security handling aligned to Chile’s rules (including payroll-cycle changes and statutory remittances);
managing compliant offboarding, including the termination process and final settlement paperwork;
coordinating employment letters and standard HR documents that employees request;
maintaining compliance monitoring for local labor-law changes that affect employment administration and payroll setup, etc.

Professional Employer Organization (PEO)

Broadly speaking, a Professional Employer Organization (PEO) is an HR outsourcing model built on co-employment: you retain your local entity and remain the employer, while the PEO takes over parts of payroll administration and HR operations (often including benefits administration and compliance support).

In Chile-focused payroll services, a PEO-style add-on usually helps with:

running the payroll cycle end-to-end with consistent controls (cutoffs, approvals, exception handling);
employee classification hygiene (so payroll logic matches contract type and obligations);
standardized documentation and audit-ready record keeping (the “fiscal validity” side of payroll);
HR admin support that reduces employee questions and speeds up issue resolution.

Payroll audits

Payroll audits are the “quality check” add-on that is useful if you’re switching providers, integrating a newly acquired team, or simply want to validate that deductions and contributions are being applied correctly.

A solid payroll audit in Chile typically covers:

gross-to-net logic checks (including treatment of deductions and any non-taxed allowances);
alignment between payslips, payments, and remittances;
review of payroll taxes withholding setup and documentation readiness for tax filing;
spot checks on contract/employee classification rules that drive contribution splits.

Local taxation and labor law guidance

In general, this add-on is about ensuring your payroll engine uses current Chilean inputs (UTM/UF-indexed thresholds, bracket updates, statutory changes) and produces defensible outcomes.

What guidance should cover	Why it matters to your payroll engine
Tax year alignment (Chile uses a calendar-year basis for key tax concepts)	Impacts annual reporting logic, timing, and how you validate withholding across the financial year
Payroll tax withholding logic (progressive employment income withholding)	Prevents incorrect net pay and reduces rework across pay frequency setups
Statutory contributions setup (AFP, health/FONASA/ISAPRE, unemployment insurance rules by contract)	Keeps employer and employee contributions consistent and reduces compliance risk
PreviRed operational flow (how pension + health payments are handled online)	Prevents “we calculated it” vs “we successfully remitted it” gaps
Working-time changes, time-tracking expectations (40-hour law phased implementation)	Affects time & attendance inputs, overtime handling, and payroll calculations for hourly/variable pay

Sources: SII, OEDC, DLA Piper – GENIE

HR admin services

HR admin add-ons don’t replace your leadership, but they keep payroll from becoming the inbox that never sleeps – especially in nearshore, offshoring, and broader international scaling.

Common HR admin services tied to payroll in Chile include:

onboarding/offboarding administration (documents, checklists, updates to employee records);
time and attendance coordination aligned with working-time reforms (inputs that directly affect payroll calculations);
employee support flows for pay stub questions, documentation requests, etc.

Alcor

Alcor supports US tech product companies building and operating software teams across Latin America and Eastern Europe. Founded in 2017, Alcor provides payroll outsourcing services in Chile as part of a broader R&D center delivery model designed to help teams hire via Alcor’s infrastructure in a target country and scale from 10 to 100 within a year. Recently, the company has also moved to the alcor.com domain.

Client feedback on Clutch often highlights Alcor’s support during rapid team growth and the delivery team's day-to-day responsiveness.

“We managed to more than double the team size within a year and kept active feedback channel with Alcor team.”
“I value their commitment to going the extra mile for their clients.”
“They provide white-glove service, and they put a lot of creativity into solving problems.”

Your concern	What Alcor offers
*Will payroll in Chile stay compliant as rules change?*	Payroll tax planning, calculation, and consultations. Preparation and submission of payroll returns and statutory payroll reporting. Focus on staying aligned with evolving tax laws and regulations in Chile. Alcor states that you can “minimize legal risks & avoid fines with our compliance service”. At Clutch, clients also leave feedback on the matter: “We hope to focus on building our products and not be concerned about legal problems, on-time payments, or tax liabilities. The real value of working with Alcor is never having to worry about those problems in all the years we’ve worked together.”
*Do I need to worry about payroll processing speed and quality?*	Onboarding covers requirements alignment (scope, pricing, payroll frequency, timelines), payroll input collection and validation, payroll calendar setup with review/approval checkpoints, and tax withholding configuration. Alcor also runs recurring gross-to-net payroll and provides ongoing support, reporting, and analytics through its in-house accounting team.
*How is employee payroll data protected?*	Their platform, AlcorOS, serves as a secure access layer for payroll operations, with security controls (secure login, encryption, and access control) and local compliance.
*What does support look like, and how predictable is the delivery model?*	The payroll SLA is defined upfront and aligned with your payroll schedule and approval workflow, rather than a one-size-fits-all model.
*How automated can the process feel, and can we centralize approvals and reduce manual steps?*	AlcorOS provides payroll oversight and approval workflows, payroll history tracking, and operational records. Platform features include time-off management synced with payroll, a document hub, and exports for team and asset records to support recurring monthly routines.
*Will pricing be clear as headcount grows?*	Custom pricing with “transparent and predictable” positioning; no hidden costs, or extra markups.
*Can this model support multi-country growth?*	Payroll outsourcing for Chile, with additional regional coverage referenced across Eastern Europe and LATAM locations (including Poland, Romania, Ukraine, Mexico, and Colombia).
*What can be bundled beyond payroll?*	As stated, 40 in-house tech recruiters will typically close your tech hires in 2-6 weeks. Employer of Record with a stated commitment to onboard each developer in 10 business days. Contractor of Record to support B2B contracting and reduce misclassification risk. 360° operational support (procurement/hardware, office lease, employer branding, HR services).

Papaya Global

Papaya Global (founded in 2016) is a workforce platform that combines global payroll with embedded workforce payments. The company positions its stack around running payroll and paying employees and authorities across 160+ countries (and 130+ currencies on the payments side), supported by virtual accounts and payment APIs. The company also references ecosystem partnerships with major enterprise systems such as Workday, Oracle, and NetSuite, and describes segregated account infrastructure via banking partners (including J.P. Morgan and Citibank) for payroll funds.

What clients from G2 are saying about Papaya Global:

“Papaya’s global reach has given us confidence to scale into new regions without worrying about payroll delays.”
“The platform itself is intuitive, with consistent access to payroll and employee data.”

Your concern	What Papaya Global offers
*Will payroll in Chile stay compliant as rules change?*	Global payroll model designed to “ensure local compliance” and keep customers updated on legal changes, supported by certified payroll experts and local compliance monitoring. The platform also supports paying authorities and statutory vendors (e.g., healthcare/meal voucher providers) in local currency during payroll execution.
*Do I need to worry about payroll processing speed and quality?*	“No more manual payroll” approach: consolidates multi-country payroll streams and standardizes data. Supports automated payroll operations plus AI-powered validation that analyzes salary updates, gross-to-net reports, local compliance requirements, and company policies to reduce error risk.
*How is employee payroll data protected?*	States certifications and audit reports, including ISO 27001, ISO 27701, SOC 1 Type 2, and SOC 2 Type 2 (security/privacy controls). The payments pages also describe segregated/ safeguarded funds and continuous monitoring for control/visibility.
*What does support look like, and how predictable is the delivery model?*	Papaya 360 Support is presented as a structured support layer for payroll/payments operations (with centralized support access, expert payroll handling, and ongoing compliance monitoring).
*How automated can the process feel, and can we centralize approvals and reduce manual steps?*	“Out-of-the-box” APIs and proprietary connectors for HRIS/HCM and related systems; “Connected payroll is easy” positioning with multiple connector types (HRIS/HCM, ERP/finance, time & attendance, expenses, VMS, etc.); also supports automated Journal Entries, including a Built for NetSuite API connection that can push JEs into NetSuite. Payments stack includes Virtual IBAN accounts and a Workforce Payments API for embedded payroll payments.
*Will pricing be clear as headcount grows?*	Quote-based pricing.
*Can this model support multi-country growth?*	Payroll and payments coverage is described in 160+ countries; the payments platform also references execution in 160+ countries and 130+ currencies, with local banking networks and status visibility to support scaling across markets.
*What can be bundled beyond payroll?*	Employer of Record; Agent of Record/Contractor solutions, global benefits, immigration support, equity management, workforce analytics, and an employee portal for payslips/documents plus time & attendance/PTO workflows.

Mercans

Mercans is a global payroll tech-and-services provider offering managed payroll, global payroll SaaS, EOR, and PEO models across 160+ countries. It’s commonly referenced as founded in 2003 and headquartered in London (UK). In Chile, Mercans delivers in-country payroll with local specialists and can extend coverage through an EOR or PEO model via a Mercans-owned legal entity

Client feedback on G2 often highlights Mercans’ responsiveness and the availability of its payroll and HR support teams.

“Mercan's payroll and HR experts are dedicated to swiftly answering all our queries”
“Kudos to the support team as they were available for assistance 24/7.”

Your concern	What Mercans offers
*Will payroll in Chile stay compliant as rules change?*	Chilean payroll outsourcing delivered with in-country payroll specialists familiar with local requirements and recurring compliance routines.
*Do I need to worry about payroll processing speed and quality?*	Chilean payroll execution is described as punctual and precise, including support for multi-currency payments. An AI-assisted validation layer is referenced for the payroll cycle, including real-time anomaly detection and predictive validation to catch exceptions earlier. For EOR/PEO operations, Mercans states that the payroll processing cycle is completed within 72 hours or less and notes that clients can hold funds until 2 days before the payroll date.
*How is employee payroll data protected?*	The platform architecture is described as API-driven, with encryption, role-based access, and disaster recovery. Security posture references SOC 1 / SOC 2 and ISO certifications.
*What does support look like, and how predictable is the delivery model?*	The delivery model emphasizes ongoing support via local in-country payroll specialists, indicating a service-led model.
*How automated can the process feel, and can we centralize approvals and reduce manual steps?*	Mercans presents itself as API-first and claims 100+ integrations, including connections to HCM/HRM/ERP and finance systems. Chilean payroll coverage explicitly references integration with global HCM/ERP systems. Their integration materials describe an “integration-first” approach with pre-built flows and auditable, API-enabled modules. Clients also leave feedback about Mercans’ platform at G2: “HR Blizz is the Great HRMS and Payroll Engine with a great dashboard and reporting system”.
*Will pricing be clear as headcount grows?*	Pricing is described as quote-based (no public rate card). Mercans also publishes specific fee mechanics for exceptions, including USD 2 per employee when payroll funding currency differs from statutory currency, and a minimum USD 250 fee for certain off-cycle/delayed/additional payroll runs triggered by incorrect or late inputs.
*Can this model support multi-country growth?*	Global coverage across 160+ countries, with multiple operating options.
*What can be bundled beyond payroll?*	Chilean scope includes EOR, PEO, and contractor management, alongside in-country payroll and global payroll SaaS.

ADP

ADP (founded in 1949) is a global leader in payroll and workforce solutions, supporting 140+ countries. Known for its integrations with major platforms like SAP SuccessFactors, Oracle, and Workday, ADP offers scalable payroll services in Chile tailored to businesses of all sizes.

What clients at G2 are saying about ADP:

“The payroll service is accurate, has compliance support, and ease of use.”
“ADP Payroll services are easy to implement in businesses irrespective of size.”

Your concern	What ADP offers
*Will payroll in Chile stay compliant as rules change?*	ADP provides full-service payroll management and compliance across 140+ countries, ensuring compliance with local tax regulations, contributions, and reporting requirements. ADP also offers global payroll solutions for multi-country businesses, integrating compliance across borders.
*Do I need to worry about payroll processing speed and quality?*	ADP’s payroll services offer automated calculations, payroll runs, and compliance checks, ensuring payroll is completed on time and accurately. Businesses benefit from easy-to-use platforms that simplify payroll without compromising accuracy.
*How is employee payroll data protected?*	ADP has SOC 1 & SOC 2 certifications and adheres to ISO 27001 standards for information security. The platform uses encryption, multi-factor authentication, and data access controls to ensure payroll data is secure and compliant with privacy regulations.
*What does support look like, and how predictable is the delivery model?*	ADP provides a dedicated support team for business clients, offering assistance with payroll processing, tax filing, and compliance questions. ADP’s system offers 24/7 support via phone and online resources.
*How automated can the process feel, and can we centralize approvals and reduce manual steps?*	ADP offers seamless integration with HR, accounting, and financial software, including SAP SuccessFactors, Oracle, and Workday, streamlining payroll data across business functions. The platform also automates tax filing, benefits administration, and compliance reporting, minimizing manual work.
*Will pricing be clear as headcount grows?*	Quote-based pricing.
*Can this model support multi-country growth?*	ADP offers scalable payroll solutions that start with small-business needs and easily expand to full-service HR solutions for larger teams across multiple regions. ADP also supports global payroll integration as businesses expand internationally in 140+ countries.
*What can be bundled beyond payroll?*	ADP offers a wide range of services, including PEO, HR solutions, time and attendance tracking, benefits administration, compliance management, and talent management.

Safeguard Global

Safeguard Global, founded in 2008, is a global workforce management company that provides comprehensive payroll solutions, Employer of Record (EOR) services, and finance & accounting outsourcing in over 179 countries. They offer payroll services and compliance support to businesses of all sizes, with a special focus on scaling companies.

What clients at G2 are saying about Safeguard Global:

“Great follow-up on outstanding issues, and great communication.”
“I like multiple features which are provided in the software.”

Your concern	What Safeguard Global offers
*Will payroll in Chile stay compliant as rules change?*	They ensure compliance with local tax laws, including income tax and social contributions, and handle complex regulations for both employer and employee taxes.
*Do I need to worry about payroll processing speed and quality?*	Payroll processing is automated and highly scalable, with Safeguard delivering on-time payroll runs and enabling clients to track payments in real-time. For global payroll, they use automated systems to streamline the payroll process and ensure accuracy.
*How is employee payroll data protected?*	The platform is ISO 27001 certified and includes SOC 1 & SOC 2 reports. It also employs encryption, multi-factor authentication, and secure data management practices to ensure confidentiality and compliance.
*What does support look like, and how predictable is the delivery model?*	Dedicated local payroll specialists and a global support team are available for clients. They offer 24/7 support with a focus on responsive, localized service.
*How automated can the process feel, and can we centralize approvals and reduce manual steps?*	Safeguard Global’s payroll platform integrates with leading HRIS, ERP, and finance systems, such as SAP, Oracle, and Workday. They also offer API integrations to automate payroll data exchange and reduce manual intervention.
*Will pricing be clear as headcount grows?*	Quote-based pricing.
*Can this model support multi-country growth?*	Safeguard Global offers payroll services across 179 countries.
*What can be bundled beyond payroll?*	In addition to payroll and EOR, Safeguard offers HR outsourcing, global benefits administration, tax compliance services, and finance & accounting outsourcing for full workforce management.

Top Payroll Companies in Chile to Handle Fast-Changing Regulations

Managing payroll in Chile requires agility and expertise to stay ahead of frequent regulatory updates, especially in a country where both tax and labor laws evolve rapidly. For companies seeking reliable payroll processing companies in Chile, the following companies stand out:

Alcor has a specialized focus on staying aligned with the evolving tax laws and regulations in Chile. The company helps minimize legal risks and avoid fines by keeping payroll operations compliant with the latest changes to Chile's labor and tax codes.
Mercans’ HRBlitz platform is designed for multi‑jurisdiction payroll and statutory reporting – enabling consistent adjustments as Chilean regulations (tax or labor) change. Their company’s global experience helps anticipate local compliance needs.
Papaya Global’s combination of payroll processing and payment capabilities reduces the risk of divergence between calculation and remittance – especially important when regulatory updates affect tax treatment or statutory contributions.

Top Payroll Companies in Chile for SMBs

For small and medium-sized businesses (SMBs) looking to scale their payroll operations in Chile while staying compliant, choosing the right provider can make all the difference. These payroll outsourcing companies in Chile offer flexible, cost-effective solutions that allow firms to manage payroll without the complexity of building out a full HR infrastructure.

Alcor is a great fit for SMBs, particularly those in tech or R&D, looking for payroll solutions that come with built-in compliance and ease of scale. Alcor supports SMBs by handling payroll within its broader operational model, which includes Employer of Record (EOR) services, allowing businesses to scale teams in Chile without setting up a local entity. The company offers transparent pricing, which is ideal for SMBs with tighter budgets.
ADP provides a well-rounded payroll solution tailored for SMBs and enterprises, with scalable pricing and a robust platform that grows with your business. With their local presence in Chile, ADP offers comprehensive support for payroll processing, tax compliance, and employee benefits.
Safeguard Global company provides a scalable payroll solution designed for SMBs looking to grow across borders, including Chile. The company is known for its Employer of Record (EOR) and payroll outsourcing services. Safeguard Global enables SMBs to hire talent in Chile without the need for a local entity.

Payroll in Chile: 5 Top Companies in 2026