Chile Final Settlement (Finiquito) Calculator
Chile · EmploymentCalculate your final settlement (finiquito) in Chile: pending compensation, prorated annual leave, and, when the reason for termination allows it, the seniority compensation and advance notice. The finiquito isn't the same as the seniority compensation: here you see each item separately.
Was your contract ended due to business needs? Seniority compensation is calculated with its own calculator. Seniority compensation →
How is it calculated?
The finiquito adds up what the employer owes when the contract ends. (1) Pending compensation: salary ÷ 30 × days worked and unpaid. (2) Prorated annual leave: annual leave days (15 business days; 20 in Magallanes, Aysén, and Palena province) ÷ 12 = 1.25 business days per month worked since your last anniversary, plus 1.25 ÷ 30 for each day of the partial month; weekends and holidays falling within that count (from the day after termination) are added to those business days, and each day is paid at compensation ÷ 30 (with variable compensation, the average of the last 3 months; mixed, salary plus that average). (3) Seniority compensation (Art. 163), only if the reason is business needs (Art. 161): 30 days of the last compensation per year of service or fraction greater than 6 months, capped at 11 years (330 days) and a base of up to 90 UF. (4) Substitute advance notice: one month's compensation (also capped at 90 UF) if you were dismissed for business needs without 30 days' notice. As a general rule, a resignation doesn't entitle you to seniority compensation. It doesn't include progressive leave, the legal bonus (gratificación), or collective agreements. The finiquito must be made available to the employee within 10 business days of termination.
Examples
Resignation: salary of 900,000, hired March 1, 2020, terminated September 30, 2026
Pending compensation 900,000 and prorated leave 381,250 (12.71 days). Total settlement: 1,281,250.
Business needs, without advance notice, same data
The seniority compensation for 7 years of service (6,300,000) and the advance notice (900,000) are added: total of 8,481,250.
What the final settlement includes based on how the contract ends
The finiquito must be made available to you within 10 business days of termination.
| Reason | Pending compensation and prorated leave | Seniority compensation | Advance notice |
|---|---|---|---|
| Resignation | Yes | No | No |
| Business needs (Art. 161) | Yes | Yes, with one year or more of service | Yes, if not given 30 days' notice |
| Contract expiration or mutual agreement | Yes | No, unless agreed | No |
Final settlement examples
Each part has its own calculator: vacation and prorated leave and seniority compensation.
Sources
- Chilean Labor Directorate — Annual and prorated leave (Labor Code, Arts. 67 to 73) — in effect since January 1987 · reviewed on September 25, 2026
- Chilean Labor Directorate — Seniority compensation and advance notice (Labor Code, Arts. 161 to 163 and 172) — in effect since January 1990 · reviewed on September 25, 2026
- SII (Chilean tax authority) — Daily UF value, 2026 — in effect since January 2026 · reviewed on September 25, 2026