Chile Seniority Compensation Calculator
Chile · EmploymentCalculate seniority compensation in Chile: 30 days of your last compensation for each year of service and fraction greater than 6 months, capped at 11 years (330 days). It applies under certain reasons for termination, mainly business needs.
This compensation is only one part of the final settlement: it doesn't include pending compensation or prorated leave. Calculate your full final settlement →
How is it calculated?
Compensation = last monthly compensation × compensable years. Compensable years are the full years of service plus one more if the remaining fraction is greater than 6 months, capped at 11 (30 days × 11 = 330 days). The contract must have been in effect for one year or more and the termination must be for a reason that generates it, generally business needs (Art. 161 of the Labor Code; Art. 163). The last monthly compensation includes what the employee received at termination, including contributions, and excludes the family allowance, overtime, and occasional or annual benefits; it's capped at 90 UF (Art. 172), which is why the calculator asks for the UF value (defaulting to September 30, 2026, SII). Additionally, if the reason is business needs and you weren't given 30 days' advance notice, substitute advance notice applies: one month on that same base; it's shown separately and isn't added automatically. Cases without a year cap (contracts prior to August 14, 1981, or agreements that remove it) aren't covered.
Examples
Exactly 7 years and 6 months: salary of 900,000, business needs
The 6-month fraction doesn't count (it must be greater than 6): 7 years × 900,000 = 6,300,000 (210 days).
7 years and 7 months: the fraction exceeds 6 months
It adds a year: 8 years × 900,000 = 7,200,000 (240 days).
16 years of service: the 11-year maximum applies
Cap of 330 days: 11 years × 900,000 = 9,900,000.
How years of service are counted
30 days of the last compensation are paid for each year of service and fraction greater than six months, capped at 11 years.
| Seniority | Compensable years |
|---|---|
| 7 years and 6 months | 7 (the fraction must be greater than 6 months) |
| 7 years and 7 months | 8 |
| 16 years | 11 (330-day cap) |
Compensation and final settlement
This compensation is one item of the final settlement, which gathers everything owed to you when the contract ends. It only applies under certain reasons, such as business needs: it doesn't apply to a voluntary resignation.
Sources
- 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