Payroll in Chile 2026: AFP, health, AFC and impuesto único

In Chile the employer deducts the employee's pension (AFP, 10% plus the fund's commission), 7% health for Fonasa or an Isapre and 0.6% unemployment insurance, and withholds the impuesto único. On top of gross pay it pays unemployment insurance, the new pension reform contribution and work-accident insurance, about 7% of salary in total.

Payroll in Chile at a glance

Social security contributions

AFP. Every employee pays 10% into their individual account plus a commission set by their AFP. The total rates for October 2026 pay are: Uno 10.46%, Modelo 10.58%, PlanVital 11.16%, Habitat 11.27%, Capital and Cuprum 11.44%, ProVida 11.45%. Under the 2025 pension reform (Ley 21.735) the employer adds 0.1% to the same account.

The pension reform employer contribution. Ley 21.735, published on 26 March 2025, phases in a new employer contribution that reaches 8.5% of taxable pay in 2033. From August 2026 pay it is 3.5%: 0.1% to the individual account, 0.9% for "rentabilidad protegida" and 2.5% for life-expectancy compensation and the disability and survivors' insurance (SIS), which together must add up to 2.5%. From August 2026 the SIS is collected by the Seguro Social instead of the AFPs. In August 2027 the total rises to 4.25%, with 0.25% to the individual account.

Ceilings. The 2026 ceilings are 90 UF for pension, health and the other contributions and 135.2 UF for unemployment insurance. For October 2026 pay, with the UF of 31 October 2026, they are CLP 3,712,287 and CLP 5,576,680.

Unemployment insurance. On an open-ended contract the employee pays 0.6% and the employer 2.4%; after 11 years the employer pays 0.8% and the employee nothing. On fixed-term contracts the employer pays 3%.

Income tax on salaries: the impuesto único

Employees pay the impuesto único de segunda categoría every month on their pay after the AFP, health and unemployment insurance deductions. The employer withholds it and pays it to the SII by the 12th of the following month. The bands are fixed in UTM (CLP 72,151 in October 2026), so the SII publishes the table in pesos each month. October 2026:

Tax = taxable pay × factor − amount to deduct. In November 2026 the UTM rises to CLP 72,440 and the exempt band to CLP 977,940.

Minimum wage, working time and mandatory pay

Minimum wage. From 1 May 2026 the ingreso mínimo mensual is CLP 553,553 for workers aged 18 to 65, CLP 412,938 for workers under 18 or over 65 and CLP 356,815 for non-remunerational purposes (Ley 21.830, published on 22 June 2026). Part-time pay may not be below the proportional minimum.

Gratificación legal. Companies that keep accounts and make a profit must share it with their workers: either 30% of the profit, divided in proportion to pay, or 25% of each worker's pay for the year, capped at 4.75 minimum wages a year (CLP 2,629,377 at the current minimum).

Working time. The 40-hour law (Ley 21.561) cuts the maximum week in stages: 44 hours from April 2024, 42 hours from 26 April 2026 and 40 hours from April 2028. Overtime must be agreed in writing for temporary needs, for up to three months at a time, is limited to two hours a day and is paid with a 50% surcharge.

Holidays. After one year of service, 15 working days of paid annual leave.

Monthly payroll calendar and filings

1. 1On hiring: sign a written contract within 15 days, or 5 days for contracts for a specific job or of less than 30 days.
2. 2Every pay day: pay at least monthly and give the employee a liquidación de sueldo, a pay slip showing the amount paid, how it was calculated and the deductions made.
3. 3By the 10th of the following month: declare and pay the AFP, health, unemployment insurance, Seguro Social and accident contributions, for example through Previred. When you declare and pay electronically the deadline is the 13th, even on a weekend or holiday.
4. 4By the 12th of the following month: pay the impuesto único withheld to the SII.
5. 5Records: employers with five or more workers must keep a payroll book (libro auxiliar de remuneraciones).

Worked example: CLP 1,500,000 a month

A single employee on an open-ended contract earns a taxable CLP 1,500,000 in October 2026. They are in AFP Modelo (10.58%) and Fonasa, and the company pays no additional accident premium.

The employer's contributions come to 6.83% of pay; on a fixed-term contract the unemployment insurance would be 3% paid by the employer alone. If the company pays the gratificación monthly, it is part of the taxable pay.

Common mistakes

1. 1Using last month's ceilings or tax table. The UF changes daily and the UTM monthly, so the peso amounts change every month.
2. 2Missing the reform contribution. Since August 2026 the employer pays 3.5%, and the SIS goes to the Seguro Social, not the AFP.
3. 3Applying one AFP rate to everyone instead of each employee's own AFP.
4. 4Charging unemployment insurance to fixed-term employees, who pay nothing; the employer pays 3%.
5. 5Planning on 44 hours: the legal week has been 42 hours since 26 April 2026.
6. 6Paying contributions late: after the 10th, or the 13th when paid online, they are overdue.

How Clientlly helps

Clientlly ships a built-in payroll profile for Chile, checked against official sources on 1 October 2026: the impuesto único bands and exempt amount as modelled, employee AFP, health and unemployment insurance rates, the employer contributions of the pension reform, unemployment and accident insurance, the UF ceilings and the minimum wage. It calculates gross to net and employer contributions, produces payslips and supports recurring payroll adjustments as well as employee and payroll imports; an administrator can adjust the rates in the payroll tax settings, for example to each employee's AFP.

The profile models one employee in a primary job, single, without dependants, at national level, so the AFP, Isapre plans, fixed-term contracts, the additional accident premium and personal circumstances must be checked.

Alongside payroll, the human resources module handles leave requests and approvals with a leave calendar and keeps HR documents, and attendance and time tracking records working hours and overtime against the 42-hour week. To close the books after each payroll run, see our month-end close checklist.