Chile severance calculator (finiquito)

When a contract ends in Chile, a finiquito is signed listing everything the employer must pay: proportional holiday, outstanding pay and, depending on how the contract ends, severance payments.

Enter your pay, the dates and the reason. The calculator separates each item, uses the Labour Directorate's official method for the holiday and shows the working with your own figures.

Proportional holiday is always paid, however the contract ends. It is worked out from the 15 working days a year divided by 12, for each month worked since your last anniversary, and then converted to calendar days by counting from the day after the end date and including Saturdays, Sundays and public holidays. Each day is worth one thirtieth of monthly pay.

Severance for years of service exists only if the dismissal is for business needs: one month of pay for each full year and for any fraction over six months, up to 11 years, with pay capped at 90 UF.

If 30 days’ notice was also not given, pay in lieu of notice is added: one month of pay, with the same cap.

What a finiquito includes

• Proportional holiday: the holiday you have earned for the time worked since your last anniversary and have not taken. It is always paid.
• Severance for years of service: only if you are dismissed for business needs (article 161) and have a year or more.
• Pay in lieu of notice: if you are dismissed for business needs without 30 days’ notice.
• Outstanding pay: the days worked in the last month, if you have not yet been paid for them.

How proportional holiday is worked out

The Labour Directorate explains it in three steps. First, the annual holiday is divided by 12: with 15 days, that is 1.25 working days a month. Second, it is multiplied by the months and days worked since the last anniversary. Third, those working days are converted into calendar days by counting from the day after the contract ends and including Saturdays, Sundays and public holidays.

The daily value is monthly pay divided by 30. With eight months and two days and pay of $900,000, the Directorate gets 14.08 calendar days and a payment of $422,500, which is the second example on this page.

With ten years of work, for one or several employers, you get an extra holiday day for every three new years. From earlier employers only ten years count, and at least three are needed with the current one.

Common mistakes

• Expecting severance for years of service on resigning. Resignation does not give rise to it: you only collect proportional holiday and whatever else is owed.
• Counting holiday in working days only. It is paid in calendar days, with the weekends and holidays in between.
• Forgetting the fraction over six months. Seven years and seven months are compensated as eight.
• Working out severance on pay above 90 UF without applying the cap.
• Thinking severance grows without limit: beyond 11 years of service it adds nothing.
• Including meal or transport allowances in pay. They are not pay and do not count towards severance.

Special cases and limits of this calculator

• Contracts that began before 14 August 1981 follow different rules, without the 11-year cap. This calculator does not cover them.
• If a judge rules the dismissal unjustified, improper or unfounded, the severance carries a surcharge from 30% to 80% depending on the ground (article 168). It is not calculated here.
• The employer may set its unemployment-insurance contribution against the severance for years of service (article 13 of Law 19,728). The calculator shows the amount without that offset.
• Proportional bonuses, commissions and settlement deductions are not included.
• Domestic workers and other special regimes have their own rules.
• You must enter the public holidays in the stretch yourself, because they depend on the year. The UF is that of 6 October 2026 and you can change it.

Notice

The result is indicative and does not replace the advice of a labour lawyer or of the Labour Directorate. Before signing a finiquito, check the figures with your employer or ask at the labour inspectorate.