Your finiquito in Chile: years-of-service indemnity, notice pay and proportional vacation
Estimates only, not financial advice. What you type stays on your device. Checked against sources on 15 Oct 2026.A worker in Chile earning $1.200.000 a month, dismissed for the company's needs without notice after 5 years and 4 months, is owed $6.000.000 of indemnización por años de servicio, $1.200.000 in lieu of notice and $280.000 of proportional vacation: $7.480.000 in all. Each year of service pays a month, up to 11 years and 90 UF a month.
2026 · Rates and rules read from the sources listed on this page (the earliest on 15 Oct 2026); they may have changed since.
Type the last monthly pay, the date the job started and the last day of the contract.
Choose the cause: the company’s needs (art. 161) pays the indemnities; resignation and other causes do not.
Say whether you got 30 days’ written notice, and add leave not taken, holidays in the span and unpaid days.
Read the years-of-service indemnity, the notice pay, the proportional vacation and the total.
The finiquito is the final settlement a Chilean employer pays when a contract ends. This page works out its main parts from your pay and your dates.
Indemnización por años de servicio. If the employer ends a contract of a year or more for the company's needs (article 161 of the Código del Trabajo), article 163 pays 30 days of the last monthly pay for each year of service, and one more year for a fraction above six months. It stops at 330 days, which is 11 years, except for workers hired before 14 August 1981.
Aviso previo. The employer must give 30 days' written notice, or pay one month instead (article 162).
The 90 UF cap. Article 172 counts at most 90 UF of monthly pay for the indemnities, using the UF of the last day of the month before payment. With the UF of 30 September 2026 ($41.057,20) that is $3.695.148. The monthly pay counts everything you receive for your work, with your own social contributions, but not overtime, family allowance or once-a-year bonuses.
Feriado proporcional. Article 73 pays the vacation earned since the last anniversary, and any leave from a completed year not yet taken. The Dirección del Trabajo counts 1.25 working days a month (15 days a year), then counts them on the calendar from the day after your last day, adding the Saturdays, Sundays and holidays that fall in that span. Workers in Magallanes, Aysén and Palena get 20 days a year; change the days if yours differ.
Resignation and other causes. If you resign, agree to leave or your fixed term ends, there is no indemnity and no notice pay: the finiquito is the proportional vacation and any pay still owed.
Not included. The court surcharges of 30% to 100% for an unjustified dismissal, an indemnity agreed above the legal one, the indemnización a todo evento, and late-payment adjustments. For your monthly take-home pay, use the Chile Net Salary Calculator.
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The indemnización is 30 days of the last monthly pay for each year of service, plus one more year for a fraction above six months, when the employer ends a contract of a year or more for the company's needs. Article 163 caps it at 330 days, or 11 years, and article 172 caps the monthly pay counted at 90 UF.
Article 172 of the Código del Trabajo counts at most 90 UF of monthly pay for the indemnities, at the UF of the last day of the month before payment. With the UF of 30 September 2026, $41.057,20, the cap is $3.695.148 a month, so 11 years pay at most $40.646.628.
When the employer ends the contract for the company's needs, or by desahucio, without giving 30 days' written notice. It is then owed one month of the last pay, capped at 90 UF, as an indemnity in lieu of notice. It is paid on top of the years-of-service indemnity, not instead of it.
Divide the 15 working days of a year by 12: 1.25 days for each month since the last anniversary, and 1.25 / 30 for each extra day. Count those days on the calendar from the day after your last day, adding Saturdays, Sundays and holidays. The Dirección del Trabajo's example turns 8 months and 2 days into 14.08 days to pay.
If you resign, there is no indemnity for years of service and no notice pay. You are owed the proportional vacation since your last anniversary, any leave from a completed year you did not take, and the days of the last month not yet paid. The employer must have the finiquito ready within 10 working days.
No. Article 7 transitorio of the Código del Trabajo removes the 330-day limit for workers hired before 14 August 1981 whose contract was in force on 1 December 1990. For everyone else the indemnity stops at 11 years, whatever the length of service; the 90 UF monthly cap still applies to all.
Rates and rules change; check the source before you rely on a figure.
Still stuck? Ask about Chile Finiquito Calculator (Indemnización y Vacaciones) and anybody who knows can answer. No account needed.
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