1. Mandatory Contributions
Every worker who belongs to an AFP is obliged to pay the social security contributions listed below. These are calculated as a percentage of the respective wage and taxable income, with an upper limit of 60 U.F., and are considered in the exceptions in Article 42, Nº 1 of the Law on Income Tax:

Women under 60 and men under 65 years of age:
• 10% to finance retirement, disability and survivorship pensions
• An additional contribution, fixed by each Administrator (see Información para el Afiliado - Estructura de Comisiones: spanish version only) to be used to finance its own operations and to pay a premium to an Insurance Company to cover the worker in the event of disability or death
• 7% to finance health services and benefits
• Employed workers who perform heavy work will also have to pay a contribution equivalent to 2% of their taxable income into their individual capitalization account, with an upper limit of 60 U.F. However, the National Ergonomic Commission will be able to reduce the percentage from 2% to 1% when giving a “heavy” rating to a particular job. Employers who take on personnel to perform heavy jobs will have to make a contribution at their own expense, and this must be the same amount as that paid by the workers themselves.

Recipients of retirement or disability pensions under the Old System who are under 60 years of age in the case of women and under 65, in the case of men:
• 10% for the Pension Fund
• Additional contribution fixed by the AFP
• 7% for health

Recipients of retirement or disability pensions under the Old System who are 60 years of age or more in the case of women, and 65 or more in the case of men:
• 10% for the Pension Fund, if they have chosen to join the New Pension System
• Differentiated additional contribution (these members are not entitled to Disability and Survivorship Insurance)
• 7% for health

Recipients of retirement pensions under the New System, or of total disability pensions arising from a second decision:
• 10% for the Pension Fund and differentiated additional contribution (these members are not entitled to Disability and Survivorship Insurance), where the member has decided to continue paying contributions
• 7% for health

Recipients of pensions for partial disability, or for total disability following a first decision:
• 10% for the Pension Fund
• Differentiated additional contribution (these members are not entitled to Disability and Survivorship Insurance)
• 7% for health

Recipients of disability pensions under the Law of Industrial Accidents and Work-Related Illnesses, as members of the New System:
• 10% for the Pension Fund
• Differentiated additional contribution (these members are not entitled to Disability and Survivorship Insurance)
• 7% for health

Members who continue working after the age of 60, in the case of women and 65, in the case of men and have not become pensioners on grounds of old age:
• 10% for the Pension Fund and differentiated additional contribution (these members are not entitled to Disability and Survivorship Insurance), where the member has decided to continue paying contributions
• 7% for health

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2. Voluntary Contributions and Voluntary Social Security Savings Deposits
Contributors under Article 42, Nº 1 of the Law on Income Tax may subtract all voluntary contributions and voluntary social security savings deposits from the taxable base of their single second category tax, where such amounts are deducted from wages by the employer, up to a monthly total equivalent to 50 UF, calculated on the basis of the value of the UF on the last day of the month in question.

In the same way, they may re-liquidate their single second category tax, following the procedure given in Article 47 of the Law on Income Tax, by subtracting from the taxable base the amount of voluntary contributions and voluntary social security savings deposits which have been paid in directly to an Authorized Institution (Banks and Financial Institutions, Mutual Fund Managers, Life Insurance Companies, Investment Fund Managers and Housing Fund Managers) or to a Pension Fund Administrator, up to a total annual maximum equivalent to the difference between 600 U.F. (at its value on the 31st December of the year in question), and the total amount of voluntary social security savings deposits and voluntary contributions paid in through the employer.

In the case of self-employed workers who are paying the contributions laid down in Article 17 of Decree Law Nº 3,500 and those allocated for financing the health services listed in Article 92 of the same body of law, the amounts dedicated to voluntary contributions and voluntary social security savings deposits will be exempt from paying the global complementary tax, up to a maximum annual total equivalent to 600 U.F. at its value on the 31st December of the year in question.

Voluntary contributions must be paid in the Pension Fund Administrators and the voluntary social security savings deposits in the voluntary social security savings plans offered by the Institutions which have been authorized for that purpose.

Where resources originating in voluntary contributions or voluntary social security savings deposits are withdrawn and not used to bring forward or improve retirement pensions, the amount withdrawn will be subject to a single tax, which is to be declared and paid in the same way and at the same time as the global complementary tax. The Pension Fund Administrators or authorized institutions must retain a tax on the amounts withdrawn at a rate of 15%, to serve as a deposit on the single tax to be determined.

In addition, the resources mentioned above may be withdrawn as freely-usable surpluses where the member fulfils the conditions established in the Law. If these sums have been held for over 48 months on the date when the freely-usable surplus decision is made, they may be withdrawn tax-free, up to an annual maximum of 200 UTM (Monthly Taxation Units), though this exemption may not exceed the equivalent of 1,200 UTM.

As an alternative, the member may opt to accommodate his withdrawals up to a maximum exemption of 800 UTM during one year. Those contributing to the Institute of Social Security Normalization (INP) may make voluntary contributions in a Pension Fund Administrator and voluntary social security savings deposits in an Authorized Institution. Such amounts may be withdrawn by the workers, being subject to the terms of sub-section 3 of Article 42 bis of the Law on Income Tax.

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3. Agreed Deposits
The worker may sign an agreement with his/her employer to deposit sums of money in his/her individual capitalization account, simply in order to increase the amount of his/her retirement pension or to bring it forward in time.

• These are charged to the employer
• They do not count as wages for any legal purpose and are not considered income for tax purposes.
• The sums which can be agreed correspond to:

• A fixed amount paid once only by the employer;
• A monthly percentage of the taxable wage,
• A fixed monthly amount.

• They have no limit in relation to the taxable wage

• In order to make the agreement between the employer and the worker, both must sign the “Voluntary Deposit Agreement” form issued by the AFPs. This may be done in the workplace, in any office belonging to the Pension Fund Administrator to which the worker belongs or through one of its representatives.

• At the same time as signing the form mentioned above, the worker must sign the Option for Voluntary Social Security Savings form, Law Nº 19,768

• The deposits may be paid into a Pension Fund Administrator or an Authorized Institution. In this latter case, they must be returned to the Pension Fund Administrator to which the worker belongs when he/she retires.

• They may not be withdrawn by the worker, except as a freely-usable surplus when the requirements for this are met, and in that case they are not tax-exempt.

Those contributing in the Institute of Social Security Normalization (INP) may make agreed deposits in a Pension Fund Administrator or in an Authorized Institution. Such amounts may be withdrawn by workers who are receiving pensions, and are subject to the stipulations of article 42 of the Law on Income Tax.

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