Chile releases ceilings for 2014 social security contributions
Chile Releases Ceilings for 2014 Social Security Contributions
Effective 1 January 2014, the Chilean Taxation Office increased the limits related to social security
contributions and employment tax withholding, reports Nair & Co. which provides global HR services for
companies setting up foreign operations.
The maximum contributions are now calculated as follows:
Mandatory Pension (AFP) and Calculated over a monthly
Mandatory Health (Isapre)
salary limit of UF 72.30
(up from UF 70.30 in
local employees working in
expatriates who contribute
Expatriates working in Chile
and contributing to their
Calculated over a cap of
UF 108.50 (up from UF
105.40 in 2013)
Companies with operations in Chile should consider these changes when forecasting employment costs
and preparing employment contributions. Also, companies must update internal systems and processes
to ensure appropriate withholding from salary payouts to employees.
For more information about doing business overseas or to learn more about our International Payroll
Services team please contact us.
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