Net and Gross Salary Calculator

Net salary is the amount you actually receive after mandatory deductions: AFP contribution (10% + commission), health contribution (7% for Fonasa or your Isapre plan amount), unemployment insurance (0.6% for permanent contracts), and monthly income tax when applicable. Non-taxable items such as meal and transportation allowances are then added.

AFC (Unemployment Fund Administrator) is the entity that manages Chile's unemployment insurance system under Law 19.728. It collects contributions, manages each worker's individual account (CIC), and manages the solidarity fund (FCS).

There are two systems: (1) Article 47: distribute 30% of net profits among workers proportionally; and (2) Article 50: pay 25% of each worker's accrued remuneration with an annual cap of 4.75 minimum wages.

Overtime is paid with a legal minimum 50% surcharge over the regular hourly rate, based on base salary and weekly hours.

It is a schedule distribution with 4 workdays and 3 rest days. It can be adopted voluntarily in companies already operating at 40 weekly hours or less, by mutual agreement. Daily hours in this model cannot exceed 10.

Employer cost is the total amount paid by the employer per worker: gross remuneration plus employer-side contributions such as SIS, employer unemployment insurance, occupational accident insurance (base rate plus DS 67 additional rate), and the payroll pension reform contribution.

When a contract changes from fixed-term to permanent, unemployment insurance distribution changes: employer contribution decreases from 3% to 2.4%, and the employee starts contributing 0.6%. This appears as a new deduction in the payslip. Other deductions (AFP, health, taxes) remain unchanged.

First, monthly taxable base is determined after mandatory social contributions. Then relief is calculated as: current monthly cap × commune percentage. Effective relief cannot exceed original taxable base. Monthly salary tax is applied to the resulting base.