Chile Severance (Finiquito) Calculator
This calculator estimates the settlement (finiquito) due when an employment contract ends in Chile. Enter your monthly pay, the start and end dates, the reason for termination and the current UF value to get a breakdown with severance for years of service, payment in lieu of notice and proportional holiday pay. Note that if the contract ends by voluntary resignation or mutual agreement, no severance for years of service or payment in lieu of notice applies: only proportional holiday pay and any pending wages are paid.
Reference UF value on 8 July 2026 (about $40,842 CLP). The UF is adjusted daily; update the value for your calculation date. Source: SII (sii.cl).
Estimated total settlement
Simplified estimate under the Chilean Labour Code. Severance for years of service only applies to the "company needs" cause (art. 161) and requires at least one year of service; pay is capped at 90 UF and the maximum is 330 days (11 years). Proportional holiday pay assumes no holidays were taken and converts working days to calendar days with an approximate factor. It excludes pending wages or overtime, bonuses and deductions. Consult a labour lawyer or the Direccion del Trabajo for the exact figure.
Publicidad
How it works
The settlement has three components. Severance for years of service applies only when the dismissal is for company needs (art. 161) and the contract lasted at least one year: one month of pay is paid for each year worked, counting a fraction of more than six months as a full year, with a maximum of 330 days (11 years) and pay capped at 90 UF. Payment in lieu of notice equals one month of pay (also capped at 90 UF) and is only due if the employer did not give at least 30 days’ notice. Proportional holiday pay compensates untaken holidays: 1.25 working days for each month worked, converted to calendar days and paid at the daily pay rate.
Publicidad
Preguntas frecuentes
- What is the finiquito?
- It is the document and payment that formalise the end of the employment relationship. It includes any severance owed under the termination cause, proportional holiday pay for untaken leave and any pending wages. It must be signed before a notary or authorised officer.
- When am I entitled to severance for years of service?
- Only when the dismissal is for company needs (art. 161) and the contract lasted at least one year. One month of pay is paid per year worked, counting a fraction of more than six months as a full year, capped at 330 days (11 years). If you resign or sign a mutual agreement, it does not apply.
- What is payment in lieu of notice?
- When the dismissal is for company needs, the employer must give 30 days’ notice. If they do not, they must instead pay one month of pay (capped at 90 UF). If proper notice was given, nothing is due.
- How is proportional holiday pay calculated?
- You are owed 1.25 working days of holiday for each month worked without taking leave (15 working days a year divided by 12 months). Those working days are converted to calendar days by adding Saturdays, Sundays and holidays, and paid at the daily pay rate.
- Is the settlement taxed?
- Legal severance for years of service and payment in lieu of notice, within the legal caps, are not subject to income tax. Proportional holiday pay and other wages do form part of the taxable base. This calculator returns gross reference amounts.