Chile Social Security Contributions Guide 2026

Overview — AFP (Administradora de Fondos de Pensiones)

Chile's pension system is based on individual capitalization accounts managed by AFPs (Administradoras de Fondos de Pensiones). Since the 1981 reform, workers contribute 10% of their taxable salary to a personal retirement account. These contributions are invested in multi-funds (Multifondos A through E) with varying risk profiles. In addition to the 10% contribution, workers pay for disability and survivor insurance (SIS — Seguro de Invalidez y Sobrevivencia) and the AFP's administrative commission. Total employee deductions typically range from 11% to 13% of gross salary. Self-employed workers were gradually incorporated into the mandatory contribution system starting in 2018 and are fully required to contribute as of 2026.

AFP Contribution — 10% to Individual Account

The core pension contribution is 10% of gross monthly salary (renta imponible), deposited directly into the worker's individual capitalization account at the chosen AFP. Key features:

• Individual account: Each worker has a personal account. Accumulated funds are invested in multi-funds and belong entirely to the worker
• Taxable salary cap: Contributions are capped at 81.3 UF (approximately CLP 2,800,000 in 2026). Earnings above this cap are not subject to AFP contributions
• AFP choice: Workers can choose among 6-7 AFPs (Capital, Cuprum, Habitat, Planvital, Provida, Modelo, UNO). Switching AFPs is allowed but may be subject to certain restrictions
• Multi-fund system: Funds A (riskiest, highest equity) through E (safest, mostly fixed income). Default fund assignment is based on age and gender, with automatic rebalancing
• Self-employed: Mandatory contributions for independent workers (trabajadores independientes) who invoice over a certain threshold, calculated on declared income

Disability & Survivor Insurance (SIS) — 1-1.5%

The SIS (Seguro de Invalidez y Sobrevivencia) provides disability pensions and survivor benefits to workers and their families:

• Premium: Approximately 1-1.5% of gross salary, varying slightly by AFP and the insured group's risk profile
• Coverage: Provides a pension if the worker becomes totally or partially disabled, or a survivor pension to beneficiaries (spouse, children under 18, or disabled children of any age) upon the worker's death
• Benefit amount: The disability/survivor pension is calculated based on the worker's accumulated balance plus an additional top-up from the SIS pool to reach a target percentage of the worker's average salary (typically 50-70%)
• Centralized pool: All AFPs pool SIS premiums into a centralized insurance fund administered by the Superintendencia de Pensiones

AFP Commission — ~0.5-1.5%

AFPs charge an administrative commission for managing contributions and accounts. The commission is calculated as a percentage of the worker's taxable salary:

• Commission rates (2026): Range from approximately 0.5% to 1.5% of gross salary, depending on the AFP. Habitat approximately 0.69%, Provida approximately 0.77%, Capital approximately 1.14%, Planvital approximately 1.16%, Cuprum approximately 1.24%, Modelo approximately 1.44%, UNO approximately 0.49%
• Payroll deduction: The commission is deducted directly from the worker's salary alongside the 10% pension contribution and SIS premium
• Additional fees: Some AFPs charge fees for account transfers, early withdrawals (where available), and certain administrative requests
• Commission cap: The Superintendencia de Pensiones monitors and may cap commission rates to protect workers from excessive charges

Health Contributions — 7% FONASA or ISAPRE

All workers must contribute 7% of their gross salary for health coverage, choosing between the public system (FONASA) or a private health insurer (ISAPRE):

• FONASA (Fondo Nacional de Salud): The public health system. The 7% contribution goes entirely to FONASA. Coverage includes all family members (dependents). Care is provided through public hospitals and clinics. Co-pays (bonos) apply based on income level (Grupo A/B/C/D). Low-income workers (Grupo A and B) receive free or heavily subsidized care
• ISAPRE (Institución de Salud Previsional): Private health insurers (e.g., Banmédica, Consalud, Colmena, Cruz Blanca, Vida Tres). The 7% contribution is paid to the ISAPRE, which provides a health plan (plan de salud). Workers can top up with additional voluntary contributions (cotización voluntaria) for better coverage
• Choice: Workers can freely choose FONASA or any ISAPRE and switch once per year (or at contract renewal)
• Dependent coverage: FONASA automatically covers dependents. ISAPRE coverage for dependents is contractual and the 7% contribution must cover the entire family group (or the worker pays extra for dependents)
• Tax treatment: The 7% health contribution is deductible from taxable income for income tax (Global Complementario) purposes

Seguro de Cesantía — Unemployment Insurance

Chile's unemployment insurance (Seguro de Cesantía) is a mandatory contributory system managed by the AFC (Administradora de Fondos de Cesantía). Contributions are shared between employer and employee:

• Employee contribution: 0.6% of gross salary for workers with indefinite-term or fixed-term contracts. 0% for workers with a boleta (independent contractors within the AFP system)
• Employer contribution: 2.4% of gross salary for indefinite-term contracts (1.6% goes to the individual unemployment account, 0.8% to the solidarity fund). For fixed-term contracts, the employer pays 2.4% total: 2.0% to the individual account and 0.4% to the solidarity fund
• Total contribution: 3.0% of gross salary (0.6% employee + 2.4% employer)
• Individual account: The employee's 0.6% plus the employer's contribution to the individual account accumulate in a personal unemployment fund. Withdrawals are allowed upon termination of employment, with limits based on the type of termination and length of contributions
• Solidarity fund (Fondo de Cesantía Solidario): Provides additional benefits to workers who exhaust their individual account, subject to eligibility criteria (at least 12 months of contributions for indefinite contracts)
• Withdrawal conditions: Up to 5 withdrawals within 5 years for indefinite contracts, with decreasing amounts. Workers with fixed-term contracts can withdraw the full balance upon termination

Employer Social Security Costs

In addition to the unemployment insurance contribution, employers bear several other mandatory costs:

• Accident insurance (Ley 16.744): Employers must contract work accident and occupational disease insurance with a mutualidad (e.g., Mutual de Seguridad, ACC, ACHS). The premium is 0.90-3.40% of payroll depending on the company's risk classification (basic rate of 0.90% for low-risk activities, up to 3.40% for high-risk)
• AFP employer contribution: Employers do NOT contribute to the worker's AFP account (the 10% is entirely employee-funded). However, employers pay the AFP commission on behalf of employees in certain labor reform proposals (not yet law as of 2026)
• Severance pay (Indemnización por Años de Servicio): Employers must pay one month's salary for each year of service (up to 11 years) in case of dismissal without cause. This is not insured (unless the employer contracts a specific insurance)
• Family allowances (Asignación Familiar): Employers pay family allowances to employees with children, funded through a solidarity pool. The employer contributes a percentage of payroll to this pool, offset against employee allowances paid

FAQs

Can I choose which AFP manages my contributions?

Yes, workers can freely choose among the six AFPs operating in Chile (Capital, Cuprum, Habitat, Planvital, Provida, Modelo). Switching AFPs is permitted, though some AFPs charge a fee for transfers. Workers who do not choose an AFP are assigned to one automatically based on their employer's default option. It is recommended to compare commissions and historical returns before selecting an AFP. Since 2022, the Superintendencia de Pensiones publishes a standardized comparison tool.

What happens if I don't contribute for a period?

Non-contribution periods (e.g., unemployment, unpaid leave) result in gaps in the individual account. These periods do not accrue pension benefits, and the worker loses disability/survivor insurance coverage and health coverage through FONASA/ISAPRE (unless paying voluntary contributions). Workers can make voluntary contributions (APV) to compensate for gaps, and the government may offer programs to recognize caregiving periods (postnatal leave, etc.) as contribution credit.

Can I withdraw money from my AFP account before retirement?

Under normal circumstances, AFP funds can only be withdrawn at retirement, upon permanent departure from Chile, or in case of terminal illness. However, emergency withdrawals were allowed during the COVID-19 pandemic (2020-2021) through laws permitting 10% withdrawals (up to three withdrawals). As of 2026, no further emergency withdrawals have been approved, though proposals continue to be debated. Early withdrawal for any other purpose is not permitted under current law.

Is the 7% health contribution deductible for income tax?

Yes, the mandatory 7% health contribution is deductible from taxable income when calculating the Global Complementario Tax (Impuesto Global Complementario). Additionally, voluntary health insurance premiums (for ISAPRE top-ups) may be deductible up to certain limits. FONASA contributions are fully deductible as they are mandatory. The deduction is claimed on the annual tax return (Operación Renta).

Do foreign workers in Chile pay social security?

Foreign workers employed in Chile under a local contract are subject to the same social security contributions as Chilean nationals: 10% AFP, SIS, AFP commission, 7% health, and 0.6% unemployment insurance. Workers on short-term assignments (< 2 years) from countries with which Chile has a social security totalization agreement (e.g., Spain, Argentina, Uruguay, Ecuador, Colombia, Peru, Paraguay, Canada) may be exempt from Chilean contributions if they remain covered by their home country's system. Chile also has bilateral agreements with several other countries. Employees of foreign diplomatic missions and consulates may be exempt under the Vienna Convention.

Disclaimer

This guide provides general information about Chilean social security contributions for the 2026 tax year. AFP commission rates, health contribution rules, and unemployment insurance provisions are subject to change through legislative or regulatory updates. The information presented reflects published Superintendencia de Pensiones, FONASA, ISAPRE, and AFC data and may not reflect individual circumstances. Always consult with a qualified Chilean labor lawyer or accountant for advice specific to your situation. InvestmentKit does not provide tax or legal advice.