Introduction Transformations in the world of work have led to a growth of temporary employment, job instability and perceived of job insecurity, and an overall precarisation of employment relations. In Chile, transformations in employment relations go back to the 1979 Plan Nacional, but scarce epidemiologic research has addressed the effects on psychological wellbeing. This study assesses the associations between different measures of insecure or precarious employment conditions and the job satisfaction and mental health of workers in Chile.

Methods Subsample of 2679 formally employed workers from the first Chilean Work, employment health and quality of life survey (2009–2010). Prevalence rate ratios were estimated via Poisson regressions for each exposure (perceived job and income insecurity; self-reported job instability; temporary contract; employment precariousness (Employment Precariousness scale) and outcome (job satisfaction and mental health (GHQ-12)). Age, education, occupation and previous unemployment were included as potential confounders.

Results Job satisfaction increased slightly in women with temporary contracts, decreased significantly with job insecurity in men and with income insecurity, self-reported job instability and employment precariousness in both women and men. Mental health showed no significant association with type of contract, decreased significantly with job insecurity, especially in men, and with income insecurity and self-reported job instability in women and men, and, in a graded manner, with employment precariousness in women.

Conclusion As elsewhere, in Chile poor employment conditions are associated with decreased worker wellbeing. However, well-known exposure measures such as type of contract showed no associations, and job insecurity exhibited less consistent „associations than self-reported employment stability. The multidimensional employment precariousness scale demonstrated associations only for women. Results highlight the importance of employment conditions for workers’ psychological wellbeing and of the theoretical and operational approach to their measurement for occupational health research.