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Social security contributions in Chile: pension, health, unemployment and work accident insurance, the new employer pension contribution, caps, deadlines and foreign staff

Argentina. For full detail on Argentina, go to The Argentine Thread.

Last verified: 2026-10-26 · Status: Changing

Employees in Chile pay 10 percent of pay into their individual pension account plus their AFP's commission (0.46 to 1.45 percent), 7 percent for health and 0.6 percent unemployment insurance, all withheld by the employer, on pay up to 90 UF a month in 2026 (135.2 UF for unemployment insurance). Employers pay 2.4 or 3 percent unemployment insurance, 0.90 percent work accident insurance plus a risk rate of up to 3.4 percent, and since August 2026 a 3.5 percent pension contribution under Ley Nº 21.735 that rises each August to 8.5 percent by 2033 (or 2035 under the slower schedule). Contributions are paid by the 10th of the following month, or the 13th online.

USD figures use the Central Bank exchange rate of CLP 986.58 per US dollar published in the Diario Oficial of 23 October 2026 (Ley Nº 18.840 art. 44). UTM amounts use the SII value of CLP 72,151 for October 2026. Amounts capped in UF use the SII value of CLP 41,057.20 for 30 September 2026, the value the law applies to payments made in October 2026; other UF amounts use CLP 41,205.16 for 23 October 2026. Conversions are for orientation only.

Key facts

Employee pension contribution to the individual account	10 %DL Nº 3.500 art. 17, as of 2026-10-26 · in force
Employee health contribution (FONASA or Isapre)	7 %DL Nº 3.500 art. 84, as of 2026-10-26 · in force
Employer pension contribution from August 2026	3.5 %Ley Nº 21.735 fourth transitory article letter b), as of 2026-10-26 · in force
Employer pension contribution at full phase in (August 2033, or August 2035 under the alternative schedule)	8.5 %Ley Nº 21.735 art. 1, as of 2026-10-26 · pending
Employer pension contribution from August 2027	4.25 %Ley Nº 21.735 fourth transitory article letter c), as of 2026-10-26 · pending
Disability and survivor insurance rate reported by the Superintendencia de Pensiones from August 2026	1.78 %DL Nº 3.500 art. 17 and art. 59; Ley Nº 21.735 art. 1 Nº 2, as of 2026-10-26 · in force
Lowest AFP commission (AFP Uno)	0.46 %DL Nº 3.500 art. 29, as of 2026-10-26 · in force
Highest AFP commission (AFP Provida)	1.45 %DL Nº 3.500 art. 29, as of 2026-10-26 · in force
Employer unemployment insurance, indefinite contracts	2.4 %Ley Nº 19.728 art. 5, as of 2026-10-26 · in force
Employer unemployment insurance, fixed term and specific job contracts	3 %Ley Nº 19.728 art. 5, as of 2026-10-26 · in force
Employee unemployment insurance, indefinite contracts	0.6 %Ley Nº 19.728 art. 5, as of 2026-10-26 · in force
Basic work accident insurance rate (employer)	0.9 %Ley Nº 16.744 art. 15, as of 2026-10-26 · in force
Maximum additional work accident rate by risk (employer, before surcharges)	3.4 %Ley Nº 16.744 art. 15, as of 2026-10-26 · in force
Monthly taxable pay cap for pension, health and accident contributions, 2026	90.0 UFDL Nº 3.500 art. 16, as of 2026-10-26 · in force
Monthly taxable pay cap for unemployment insurance, 2026	135.2 UFLey Nº 19.728 art. 6, as of 2026-10-26 · in force
Payment deadline, day of following month (electronic)	13 day of monthDL Nº 3.500 art. 19, as of 2026-10-26 · in force

The rule

1. Workers affiliated to the pension system must contribute 10 percent of taxable pay to their individual capitalisation account, plus an additional contribution set by each pension fund manager (AFP) to finance it. For employees, the part of that additional contribution that funds the disability and survivor insurance (SIS) is paid by the employer. The employer deducts the employee's contributions from pay.
Example: On CLP 2,000,000: CLP 200,000 to the pension account plus CLP 9,200 to CLP 29,000 of AFP commission. / About US$203 plus US$9 to US$29.Decreto Ley Nº 3.500 of 1980, Art. 17 and art. 19, second paragraph, 1980-11-13 official text · verified 2026-10-26

2. The AFP commissions currently charged on taxable pay, as published by the Superintendencia de Pensiones, are: AFP Uno 0.46 percent, AFP Modelo 0.58 percent, AFP Planvital 1.16 percent, AFP Habitat 1.27 percent, AFP Capital 1.44 percent, AFP Cuprum 1.44 percent and AFP Provida 1.45 percent. New affiliates join the AFP with the lowest commission, AFP Uno since 1 October 2025.Decreto Ley Nº 3.500 of 1980; Superintendencia de Pensiones, Art. 17 and art. 29; SP AFP system page, 1980-11-13 official text · verified 2026-10-26

3. Workers contribute 7 percent of taxable pay for health, paid to FONASA or, if the worker chooses, to a private health insurer (Isapre), which may require a higher agreed contribution; the employer withholds it.
Example: CLP 140,000 on CLP 2,000,000. / About US$142.Decreto Ley Nº 3.500 of 1980, Art. 84, 1980-11-13 official text · verified 2026-10-26

4. Ley Nº 21.735 creates an employer pension contribution that reaches 8.5 percent of taxable pay: 6 percent for the worker's accounts (4.5 percent to the individual account and 1.5 percent as a protected return contribution) and 2.5 percent to the Fondo Autónomo de Protección Previsional to finance the life expectancy compensation and the disability and survivor insurance. It is phased in each August after publication on 26 March 2025: 1 percent from August 2025, 3.5 percent from August 2026, 4.25 percent from August 2027, 5 percent from August 2028, then 0.7 points a year to 8.5 percent in August 2033. If the external review of the revenue from Ley Nº 21.713 shows a shortfall not otherwise compensated, the steps from August 2029 are slower (5.5, 6.0, 6.5, 7.0, 7.5, 8.0 percent) and 8.5 percent is reached in August 2035.
Cost to do it: 3.5 percent of taxable pay up to the 90 UF cap since August 2026.
Example: CLP 70,000 a month on CLP 2,000,000; at most CLP 129,330 a month at the cap (90 UF of 30 September 2026). / About US$71; at most about US$131.Ley Nº 21.735, Diario Oficial 26 March 2025, Art. 1 and fourth transitory article, 2025-03-26 official text · verified 2026-10-26 · changed: Employer contribution rose from 1 percent to 3.5 percent from August 2026 pay; next step to 4.25 percent from August 2027.

5. From August 2026 pay, the employer's 3.5 percent is allocated 0.1 percent to the individual account, 0.9 percent to the protected return contribution and 2.5 percent to the social insurance, which now includes the disability and survivor insurance; these contributions are collected by the Instituto de Previsión Social through Previred and paid by the 10th of the following month, or the 13th online. The Superintendencia de Pensiones reports an SIS rate of 1.78 percent of taxable pay from August 2026.Ley Nº 21.735; ChileAtiende; Superintendencia de Pensiones, Ley Nº 21.735 art. 1 Nº 2 and fourth transitory article letter b), 2025-03-26 official text · verified 2026-10-26

6. For income tax purposes the employer contribution is a social security benefit for the worker and a deductible expense for the employer. The obligation ends when the worker retires on an old age or total disability pension under DL Nº 3.500 or turns 65, whichever comes first.Ley Nº 21.735, Art. 3 and art. 5, 2025-03-26 official text · verified 2026-10-26

7. Pension and health contributions are calculated on monthly pay up to a cap of 60 UF adjusted yearly by the real wage index, set by the Superintendencia de Pensiones: 90.0 UF for 2026 (87.8 UF in 2025). The unemployment insurance cap, adjusted the same way from 90 UF, is 135.2 UF for 2026 (131.9 UF in 2025). Caps use the UF of the last day of the month before payment.
Example: 90 UF = CLP 3,695,148 and 135.2 UF = CLP 5,550,933 at the 30 September 2026 UF. / About US$3,745 and US$5,626.Decreto Ley Nº 3.500 of 1980; Ley Nº 19.728; Superintendencia de Pensiones, DL Nº 3.500 art. 16; Ley Nº 19.728 art. 6, 1980-11-13 official text · verified 2026-10-26 · changed: Caps raised on 1 January 2026 from 87.8 UF to 90.0 UF (pensions, health, accidents) and from 131.9 UF to 135.2 UF (unemployment insurance).

8. Unemployment insurance covers employees under the Labour Code, except apprentices, workers under 18 and pensioners. It is funded by 0.6 percent of taxable pay from employees on indefinite contracts and, from the employer, 2.4 percent for indefinite contracts or 3 percent for fixed term or specific job contracts. The employer must report each hire and termination to the fund administrator within 10 days (13 if electronic), on pain of a 0.5 UF fine.
Example: Employer CLP 48,000 and employee CLP 12,000 on CLP 2,000,000 (indefinite contract). / About US$48.65 and US$12.16.Ley Nº 19.728, Art. 2 and art. 5, 2001-05-14 official text · verified 2026-10-26

9. Work accident and occupational disease insurance is paid entirely by the employer: a basic 0.90 percent of taxable pay plus an additional rate by activity and risk of up to 3.4 percent. The additional rate can be cut or waived for strong prevention records or raised by up to 100 percent for unsafe conditions, as set by the employer's mutual or the health service.
Example: CLP 18,000 basic rate on CLP 2,000,000, plus up to CLP 68,000 of additional rate. / About US$18 plus up to US$69.Ley Nº 16.744, Art. 15 and art. 16, 1968-02-01 official text · verified 2026-10-26

10. Contributions must be declared and paid to the relevant institutions by the 10th of the month after the pay accrues, or by the 13th when declared and paid electronically. Failing to declare on time, or an incomplete or wrong declaration, is fined 0.75 UF per worker, and unpaid contributions are collected with adjustments and interest.
Example: 0.75 UF is about CLP 30,904 per worker at the 23 October 2026 UF. / About US$31 per worker.Decreto Ley Nº 3.500 of 1980, Art. 19, 1980-11-13 official text · verified 2026-10-26

11. Companies that hire foreign technical staff, and those workers, are exempt from Chilean social security contributions for those contracts if the worker is affiliated to a foreign social security system covering at least sickness, disability, old age and death, and the contract records the worker's wish to keep that affiliation. The exemption does not cover work accident insurance under Ley Nº 16.744. Falsely claiming it is fined up to 5 annual tax units.Ley Nº 18.156, Diario Oficial 25 August 1982, Art. 1 and art. 3, 1982-08-25 official text · verified 2026-10-26

12. Chile and Argentina have a social security agreement promulgated by Decreto Nº 164 (Diario Oficial 31 December 2009). People who worked in either country can claim old age, disability and survivor pensions, and qualifying employed or self employed workers posted to the other country can keep contributing at home for 24 months, extendable. For details on the Argentine side see The Argentine Thread.Decreto Nº 164 of 2009, Ministerio de Relaciones Exteriores (Convenio de Seguridad Social Chile Argentina), Superintendencia de Pensiones agreements page, 2009-12-31 official text · verified 2026-10-26

Contribution	Paid by	Rate	CLP	USD	Rule
Pension, individual account	Employee	10 percent	200,000	202.72	DL Nº 3.500 art. 17
AFP commission (AFP Uno)	Employee	0.46 percent	9,200	9.33	DL Nº 3.500 art. 17 and art. 29
Health	Employee	7 percent	140,000	141.90	DL Nº 3.500 art. 84
Unemployment insurance	Employee	0.6 percent	12,000	12.16	Ley Nº 19.728 art. 5
Total withheld from the employee		18.06 percent	361,200	366.11
Employer pension contribution (includes SIS)	Employer	3.5 percent	70,000	70.95	Ley Nº 21.735
Unemployment insurance	Employer	2.4 percent	48,000	48.65	Ley Nº 19.728 art. 5
Work accident insurance, basic rate	Employer	0.90 percent	18,000	18.24	Ley Nº 16.744 art. 15
Total employer cost on top of pay		6.8 percent	136,000	137.85

Monthly contributions on taxable pay of CLP 2,000,000, indefinite contract, from August 2026 (AFP Uno commission; before the additional accident risk rate)

From pay of	Base schedule	Alternative schedule if Ley Nº 21.713 revenue falls short	CLP a month at the base rate
August 2025	1.0 percent	1.0 percent	20,000
August 2026	3.5 percent	3.5 percent	70,000
August 2027	4.25 percent	4.25 percent	85,000
August 2028	5.0 percent	5.0 percent	100,000
August 2029	5.7 percent	5.5 percent	114,000
August 2030	6.4 percent	6.0 percent	128,000
August 2031	7.1 percent	6.5 percent	142,000
August 2032	7.8 percent	7.0 percent	156,000
August 2033	8.5 percent	7.5 percent	170,000
August 2034	8.5 percent	8.0 percent	170,000
August 2035	8.5 percent	8.5 percent	170,000

Employer pension contribution schedule under Ley Nº 21.735 fourth transitory article (cost on CLP 2,000,000 of taxable pay)

Worked example

A manager earning CLP 6,000,000 a month (about US$6,082) in October 2026: pension, health and accident contributions apply only to the 90 UF cap of CLP 3,695,148, and unemployment insurance to the 135.2 UF cap of CLP 5,550,933.
Employer cost: 3.5 percent pension CLP 129,330, 2.4 percent unemployment CLP 133,222 and 0.90 percent accident CLP 33,256, total CLP 295,809 (about US$300) a month plus the additional accident rate. Withheld from the manager: CLP 369,515 pension, CLP 258,660 health and CLP 33,306 unemployment, plus the AFP commission.
An engineer seconded from Argentina under the bilateral agreement can keep contributing in Argentina for 24 months (extendable) with the Chilean employer paying only what the agreement leaves in Chile.

Step by step

Before the first payroll: join a work accident mutual (or the state insurer) and register on Previred for declarations and payments.
Within 10 days of each hire or termination (13 online): report it to the unemployment fund administrator.
Monthly: calculate contributions on capped taxable pay, withhold the employee share, and declare and pay by the 10th (13th online).
Each January: apply the new caps published by the Superintendencia de Pensiones; each August: apply the next employer pension rate.
For foreign technicians: put the Ley Nº 18.156 election in the contract and keep proof of foreign affiliation; for Argentine secondees, obtain the agreement certificate before arrival.

Common traps

Dismissing a worker while contributions are unpaid makes the dismissal ineffective and pay keeps accruing until they are paid (Código del Trabajo art. 162).
The employer pension contribution is on top of the worker's 10 percent; it is not withheld from pay.
Fixed term and specific job contracts cost 0.6 points more unemployment insurance (3 percent) but carry no employee share.
Claiming the foreign technician exemption without foreign coverage for sickness, disability, old age and death is fined and contributions become due (Ley Nº 18.156 art. 3).

Sources

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