How take-home pay works in Chile
If you are relocating to Chile or comparing a job offer, the number on the offer letter is the gross salary — and Chilean payroll takes a serious bite out of it. Your employer withholds pension savings (AFP), health insurance (Fonasa or an Isapre), unemployment insurance and a monthly income tax known as the “impuesto único de segunda categoría”. This calculator runs the whole chain with the July 2026 figures and shows every step, entirely in your browser.
Using the calculator
- Enter your gross taxable salary in Chilean pesos. Include the monthly legal profit-sharing bonus (gratificación) and taxable allowances; meal and transport allowances stay out.
- Pick your contract type: open-ended contracts pay a 0.6% unemployment premium, fixed-term contracts pay none.
- Choose your AFP — every fund deducts the mandatory 10% plus its own fee.
- Select Fonasa (public, 7%) or an Isapre (private, plan priced in UF).
- Adjust the UF and UTM values if you are estimating a different month. Both are official inflation-indexed units: the UF changes daily and the UTM monthly.
The 2026 rules at a glance
| Deduction | 2026 rate | Cap |
|---|---|---|
| AFP pension | 10% + fund fee (0.46% to 1.45%) | 90 UF of taxable pay |
| Fonasa health | 7% | 90 UF of taxable pay |
| Isapre health | Higher of legal 7% and plan price in UF | Legal 7% capped at 90 UF |
| Unemployment insurance (open-ended) | 0.6% | 135.2 UF of taxable pay |
| Unemployment insurance (fixed-term) | 0% — employer pays it all | — |
AFP fees as of July 2026: Uno 0.46%, Modelo 0.58%, PlanVital 1.16%, Habitat 1.27%, Capital 1.44%, Cuprum 1.44%, ProVida 1.45%. Fees change after auctions, so double-check yours.
Monthly income tax table (July 2026, UTM = $71,649)
The brackets are fixed by law in UTM (13.5 / 30 / 50 / 70 / 90 / 120 / 310 UTM), so the peso amounts move every month. The tax applies to your gross pay minus all the contributions above.
| Monthly tax base | Rate | Deductible credit |
|---|---|---|
| Up to $967,261.50 | Exempt | $0 |
| Up to $2,149,470 | 4% | $38,690.46 |
| Up to $3,582,450 | 8% | $124,669.26 |
| Up to $5,015,430 | 13.5% | $321,704.01 |
| Up to $6,448,410 | 23% | $798,169.86 |
| Up to $8,597,880 | 30.4% | $1,275,352.20 |
| Up to $22,211,190 | 35% | $1,670,854.68 |
| Above $22,211,190 | 40% | $2,781,414.18 |
Worked example
Gross salary of $4,500,000, open-ended contract, Fonasa, AFP Uno, July 2026 (UF = $40,844.79):
- Pension and health cap: 90 UF = $3,676,031.10, and $4,500,000 exceeds it, so both are computed on the cap.
- AFP: 10% + 0.46% = 10.46% of 3,676,031.10 = $384,513.
- Health: 7% of 3,676,031.10 = $257,322.
- Unemployment: the 135.2 UF cap ($5,522,216) is not reached, so 0.6% of 4,500,000 = $27,000. Total contributions: $668,835.
- Tax base: 4,500,000 − 668,835 = $3,831,165, which lands in the 13.5% bracket.
- Tax: 3,831,165 × 0.135 − 321,704.01 = $195,503.
- Take-home pay: 4,500,000 − 668,835 − 195,503 = $3,635,662.
Frequently asked questions
Does the 2026 pension reform lower my net salary?
No. Law 21,735 adds a contribution paid entirely by the employer: 1% of taxable pay through July 2026, 3.5% from August 2026, climbing gradually to 8.5% by 2033. The Pensions Superintendence has confirmed it never touches the employee’s 10%, so your take-home pay is unaffected.
I am a foreigner on a Chilean contract. Do these rules apply to me?
Yes. A local employment contract triggers the same AFP, health, unemployment and tax withholdings regardless of nationality. Some technical professionals can opt out of AFP under Law 18.156 if they keep contributing abroad — a special case this tool does not model.
What exactly are UF and UTM?
Two official inflation-indexed units. The UF (about $40,845 in early July 2026) reprices daily and sets the contribution caps; the UTM ($71,649 in July 2026) updates monthly and defines the tax brackets. Enter the current values for an accurate result.
Why is my payslip slightly different?
Payslips may include items this tool does not cover: union dues, voluntary pension savings (APV), Isapre surcharges or seniority past 11 years dropping the 0.6% premium. Treat the result as a close estimate, not a payroll document.
Figures on this page reflect July 2026. Caps, fees, UF and UTM values change during the year — review them annually at sii.cl and spensiones.cl.