Frequently asked questions

Question 1

What is remuneration?

Accepted Answer

Under Article 41 of Chile's Labor Code, remuneration includes monetary payments and in-kind benefits valued in money that an employee receives because of the employment contract. It includes base salary, overtime pay, commissions, participation payments, and legal bonus. It does not include transportation allowance, meal allowance, travel expenses, tool wear allowance, or legal indemnifications.

Question 2

What is a taxable earning?

Accepted Answer

A taxable earning is any payment received as compensation for work that is subject to social security deductions (AFP, health, unemployment insurance) and income tax. Main taxable earnings include base salary, legal bonus, sales/performance commissions, production/compliance bonuses, and overtime pay. The sum of these items forms taxable remuneration used to calculate mandatory deductions.

Question 3

What is a non-taxable earning?

Accepted Answer

A non-taxable earning is an allowance paid by the employer to compensate work-related expenses and is not subject to social security contributions or income tax. Common examples include meal allowance, transportation allowance, travel allowance, tool wear allowance, and legal indemnifications. These amounts are added directly to net pay without deductions.

Question 4

What is gross salary or base salary?

Accepted Answer

Gross salary (also called base salary) is the fixed monthly amount agreed in your employment contract before mandatory deductions. It is the base used to calculate AFP, health, unemployment insurance, and income tax. It does not include bonuses, commissions, legal bonus, or overtime, which are added as additional earnings.

Question 5

What is net salary?

Accepted Answer

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.

Question 6

What is the difference between taxable and non-taxable earnings?

Accepted Answer

Taxable earnings are subject to social security and tax deductions (base salary, legal bonus, commissions, bonuses, and overtime). Non-taxable earnings are allowances to compensate employee expenses and are not subject to deductions (meal, transportation, travel, and tool wear allowances).

Question 7

What is taxable remuneration?

Accepted Answer

Taxable remuneration is the sum of all taxable earnings (base salary + legal bonus + commissions + bonuses + overtime). It is the base for AFP, health, unemployment insurance, and monthly income tax. For AFP and health, it has a monthly cap of 90 UF (from February 2026 onward).

Question 8

What is a payslip and what should it include?

Accepted Answer

A payslip is the official document that details your monthly compensation. It should include employee data, company data, contract type, pension/health system, taxable and non-taxable earnings detail, mandatory deductions, and final net salary. Employers must provide it monthly in paper or digitally with electronic signature.

Question 9

Which legal deductions apply to my salary?

Accepted Answer

There are four mandatory deductions: (1) AFP contribution: 10% of taxable remuneration plus AFP commission; (2) Health contribution: mandatory 7% to Fonasa or Isapre; (3) Unemployment insurance: 0.6% for permanent contracts (employee does not contribute under fixed-term contracts); (4) Monthly income tax: applies only when taxable base exceeds the exempt threshold in UTM.

Question 10

What is the minimum wage in Chile in 2026?

Accepted Answer

As of May 1, 2026, the monthly minimum wage is CLP $553,553 for workers over 18 and up to 65 years old (Law No. 21.830, published on June 22, 2026). For workers under 18 and over 65, it is CLP $412,938. For non-remunerational purposes, the reference value is CLP $356,815.

Question 11

Does minimum wage include legal bonus?

Accepted Answer

No. Minimum wage refers only to the contractual base salary. Legal bonus is an additional concept paid on top of base salary, increasing total taxable remuneration.

Question 12

What is the approximate net pay at minimum wage?

Accepted Answer

Net pay at CLP $553,553 depends on your AFP and health system. With Fonasa and AFP Modelo (0.58% commission), an approximate net is around CLP $450,000 to $460,000 (without legal bonus). Exact values vary by AFP and setup, and the calculator gives the precise result.

Question 13

When could minimum wage increase again?

Accepted Answer

Law No. 21.830 sets an automatic adjustment from January 1, 2027 based on CPI variation reported by INE between May 1 and December 31, 2026. It also requires a new adjustment bill during June 2027 for a July 1, 2027 effective date.

Question 14

Can salary be lower than minimum wage for part-time work?

Accepted Answer

Yes. CLP $553,553 applies to full-time work (currently 42 weekly hours). For part-time schedules, minimum wage is proportional. For example, 30 weekly hours is approximately CLP $395,000.

Question 15

What is an AFP?

Accepted Answer

An AFP (Pension Fund Administrator) is a private entity that manages pension savings for workers in Chile under the individual capitalization system. Dependent workers must be affiliated to an AFP, where 10% of taxable remuneration plus an AFP commission is deposited monthly. Those funds are invested and accumulated for retirement.

Question 16

What percentage of my salary goes to AFP?

Accepted Answer

The mandatory contribution is 10% of taxable remuneration, plus the AFP commission charged by your administrator. Total payroll deduction varies depending on AFP commission rates.

Question 17

Which AFP has the lowest commission?

Accepted Answer

As of February 2026, AFP Uno has the lowest commission (0.46%), followed by AFP Modelo (0.58%). Commission is important, but you should also compare historical returns and service quality.

Question 18

What is the AFP taxable cap?

Accepted Answer

It is the maximum salary base used to calculate pension contributions. Since February 2026, AFP and health contributions are capped at 90 UF per month.

Question 19

What is the pension reform and how does it affect me?

Accepted Answer

Law No. 21.735 introduced an additional employer-paid contribution that started at 1% in August 2025 and will gradually increase to 7% over nine years. It is not deducted from employee net salary.

Question 20

What is SIS (Disability and Survivorship Insurance)?

Accepted Answer

SIS is a mandatory insurance that protects workers and beneficiaries in case of disability or death. Since January 2026, the rate is 1.54% of taxable remuneration and is fully paid by the employer.

Question 21

Can I switch AFP? When is it advisable?

Accepted Answer

Yes. You can switch AFP at any time free of charge. The change becomes effective from the second month after the request. Compare commission differences and historical returns before deciding.

Question 22

Should I inform my employer if I switch AFP?

Accepted Answer

Yes. Even though the switch is processed with the new AFP, your employer must update payroll information so contributions are paid to the correct administrator.

Question 23

What is Fonasa?

Accepted Answer

Fonasa (National Health Fund) is Chile's public health system. It covers employees, independent workers, pensioners, and people without income. It uses income-based categories and keeps the statutory 7% contribution over taxable remuneration.

Question 24

What is an Isapre?

Accepted Answer

An Isapre is a private health insurer in Chile. It offers personalized plans based on coverage, provider network, and member profile. Plan cost can exceed the mandatory 7%, and any difference is deducted from salary.

Question 25

How much is deducted for health from my salary?

Accepted Answer

Mandatory health contribution is 7% of taxable remuneration, capped at 90 UF. In Fonasa you always pay 7%. In Isapre, 7% is the minimum and plan differences may generate either extra deductions or surpluses.

Question 26

What is the difference between Fonasa and Isapre?

Accepted Answer

Fonasa is public health with regulated costs and universal coverage criteria. Isapres are private insurers with personalized plans and faster private-network access, but plan cost may exceed 7% and vary by profile.

Question 27

How does an Isapre plan affect my net salary?

Accepted Answer

If your Isapre plan equals 7%, impact is similar to Fonasa. If it costs more, the difference is deducted from net salary. If it costs less, surpluses may be available for eligible health expenses.

Question 28

Does the calculator support Isapre plans above 7%?

Accepted Answer

Yes. You can choose Isapre and enter your plan value in UF. If plan cost is above the mandatory 7%, the calculator applies the additional deduction.

Question 29

What happens if my taxable salary is above 90 UF?

Accepted Answer

Health contribution is calculated only up to 90 UF. Any taxable remuneration above that cap does not increase mandatory health contribution.

Question 30

Should I inform my employer if I switch Isapre?

Accepted Answer

Yes. Your employer must update payroll destination and deduction amount so health contributions are paid correctly after the change.

Question 31

What is AFC?

Accepted Answer

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).

Question 32

What is unemployment insurance and who pays for it?

Accepted Answer

Unemployment insurance provides economic protection when workers lose their jobs. It is funded by worker and employer contributions. In permanent contracts: worker 0.6%, employer 2.4%. In fixed-term/work contracts: employer 3%, worker 0%.

Question 33

How much is deducted for AFC?

Accepted Answer

It depends on contract type. Permanent contracts deduct 0.6% from the worker. Fixed-term/work contracts deduct 0% from the worker and employer pays the full 3%.

Question 34

Why does the percentage change by contract type?

Accepted Answer

The law differentiates by job stability. In permanent contracts, worker and employer share the 3% total. In fixed-term/work contracts, employer assumes the full 3% due to higher unemployment risk.

Question 35

What is the unemployment insurance taxable cap?

Accepted Answer

The unemployment insurance cap is 135.2 UF (from February 2026), higher than AFP and health cap (90 UF).

Question 36

Can I access unemployment insurance funds?

Accepted Answer

Yes. You can access your CIC funds when unemployed (dismissal, resignation, or contract end), subject to legal requirements. The solidarity fund (FCS) may apply if CIC funds are insufficient.

Question 37

What is legal bonus (gratificacion legal)?

Accepted Answer

Legal bonus is a mandatory compensation concept linked to company profits. Under Article 47 of Chile's Labor Code, employers with net profits must pay annual bonus to workers. It is taxable income and subject to social security deductions and tax.

Question 38

Which legal bonus systems exist?

Accepted Answer

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.

Question 39

How does the calculator compute legal bonus?

Accepted Answer

By default, it uses Article 50 (the most common model): 25% of monthly base salary with a monthly cap equivalent to 4.75 minimum wages divided by 12.

Question 40

Is legal bonus mandatory even if the company has losses?

Accepted Answer

Under Article 47, it is mandatory only when the company has net profits. Under Article 50 (25% with cap), employers are considered compliant regardless of profit results.

Question 41

Can I disable legal bonus in the calculator?

Accepted Answer

Yes. You can turn off automatic legal bonus and enter a manual amount, including zero, according to your contract or company payment policy.

Question 42

What is monthly income tax (Impuesto único de segunda categoría)?

Accepted Answer

It is a progressive tax applied to dependent work income (wages, salaries, pensions). It is calculated monthly on your taxable base (taxable remuneration minus mandatory social contributions) and withheld by the employer for filing with SII.

Question 43

From what amount do I start paying tax?

Accepted Answer

You start paying when monthly taxable base exceeds 13.5 UTM. The calculator uses updated UTM values and provides a quick reference for the approximate no-tax gross threshold.

Question 44

What are the income tax brackets?

Accepted Answer

The tax is progressive with multiple UTM brackets. Each bracket has its own rate, and only the income portion within each bracket is taxed at that rate.

Question 45

How is tax calculated if I fall into multiple brackets?

Accepted Answer

Rates are applied progressively by portions, not to the full amount. The calculator applies the updated SII bracket table automatically.

Question 46

Do bonuses and commissions also pay tax?

Accepted Answer

Yes. Base salary, legal bonus, commissions, bonuses, and overtime are taxable earnings. After social contribution deductions, they affect taxable base and may increase monthly tax.

Question 47

How is overtime calculated?

Accepted Answer

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

Question 48

How does the 40-hour law impact overtime?

Accepted Answer

As legal weekly hours are reduced, regular and overtime hourly values increase. The calculator updates this by date.

Question 49

What are meal and transportation allowances?

Accepted Answer

They are non-taxable allowances that employers may provide to compensate meal and transportation expenses. Since they are non-taxable, no pension contributions or income tax are deducted from those amounts.

Question 50

Is the employer required to pay meal and transportation allowances?

Accepted Answer

No. Chilean law does not require employers to pay them by default. They depend on individual or collective agreement and are usually defined in the employment contract.

Question 51

Is there a legal maximum amount for these allowances?

Accepted Answer

There is no fixed legal amount in CLP. However, guidance from SUSESO indicates values should be reasonable and proportional to actual employee expenses; excessive amounts may be reclassified as taxable by regulators.

Question 52

How do meal and transportation allowances affect net salary?

Accepted Answer

They are added directly to take-home pay without deductions. For example, if net pay after deductions is CLP $450,000 and allowances total CLP $70,000, final payment is CLP $520,000.

Question 53

What is the maximum legal workweek in Chile in 2026?

Accepted Answer

Up to April 25, 2026, the legal maximum is 44 weekly hours. From April 26, 2026, it is reduced to 42 hours under the gradual implementation of Law 21.561 (40-hour law). The final 40-hour target is expected in April 2028.

Question 54

Does reducing work hours mean reducing salary?

Accepted Answer

No. The law explicitly states that reducing legal hours cannot reduce agreed remuneration. The change is automatic, though companies should formally communicate the new schedule distribution.

Question 55

What is a 4x3 work schedule?

Accepted Answer

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.

Question 56

What is included in employer cost?

Accepted Answer

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.

Question 57

What is the additional accident rate (DS 67)?

Accepted Answer

Supreme Decree No. 67 defines an additional occupational accident contribution that can vary by company accident history and activity risk. It is added on top of the base accident insurance rate.

Question 58

What is company RUT and why is it used in the calculator?

Accepted Answer

Company RUT is the tax identification number in Chile. In the calculator, entering RUT helps identify economic activities and estimate the applicable DS 67 rate more accurately.

Question 59

Can I hide employer cost in results?

Accepted Answer

Yes. The calculator allows showing or hiding employer cost in results and in the downloadable PDF view.

Question 60

How much does employer cost represent over gross salary?

Accepted Answer

As a reference, additional employer cost is often around 5% to 10% of gross salary, depending on AFP, contract type, and accident rate. With pension reform progression, this share can increase over time.

Question 61

How do I calculate net salary from base salary?

Accepted Answer

Choose “From base salary”, enter monthly gross salary, select AFP and health system (Fonasa or Isapre), choose contract type, and the calculator will show all deductions and final net salary automatically. You can also add legal bonus, commissions, bonuses, and overtime.

Question 62

How do I get gross salary from a target net amount?

Accepted Answer

Choose “I want a target net salary” and enter your desired take-home amount. The calculator runs an inverse calculation to estimate the required base salary considering all legal deductions.

Question 63

What are the quick salary picks?

Accepted Answer

They are shortcuts for common references, such as minimum full-time salary, proportional minimum for 30 weekly hours, and an approximate “max without income tax” value.

Question 64

Does the calculator update automatically with current values?

Accepted Answer

Yes. It uses current economic indicators (UF, UTM, minimum wage, AFP cap) to calculate with up-to-date values.

Net and Gross Salary Calculator

Taxable Income

Contract Type

Extreme-zone tax relief

Pension Fund (AFP)

Health Insurance

Calculation Result

Employer Cost