Business
Chile — Business: Social Security
From August 2026 Chilean employers pay a new 3.5% pension contribution on top of the worker 10%, rising to 8.5% by 2033.
VerifiedGovernment / official sourceMinistry of Labour — employer pension contribution reform (Law 21.735)Last reviewed: 2026-10-23
Key facts
- From August 2026 pay the employer contributes a total of 3.5% of taxable salary for each AFP-affiliated worker, with 2.5% to the Social Insurance pillar and 0.9% to the new CRP.
- The worker own mandatory contribution of 10% is unchanged, and the CRP is not deducted from pay.
- The employer rate phases up to 8.5% by 2033, with the CRP rising to 1.5% from August 2027.
- Payment is made through Previred and is due by the 13th of the following month.
Steps
- Step 1: Register with IPSS — Contact IPSS to obtain a registration number, which is required for all employers. Provide documentation, including the business's tax identification number and proof of address.
- Step 2: Calculate Social Security Contributions — Determine the total monthly salary for each employee, including any bonuses or commissions. Calculate the employer's contribution (approximately 12.5% of the total salary) and the employee's contribution (around 7% of the total salary). Pay these amounts to IPSS within the required timeframe.