Chilean Net Salary Calculator
Calculate your take-home pay after tax, AFP, health insurance, and other mandatory deductions in Chile for 2025.
Notes:
- This calculator provides estimates only and should not be used for tax filing purposes.
- The calculation uses projected 2025 Chilean tax brackets and rates.
- The calculations assume you are a Chilean resident for tax purposes.
- Additional deductions like voluntary contributions or special health plans may affect your actual net salary.
- Exchange rates and inflation may impact the actual value of salaries in 2025.
How We Calculate Your Chilean Net Salary
Income Tax Rates for 2025
Chilean income tax (Impuesto a la Renta) is calculated using a progressive tax system based on your taxable income. For 2025, the projected income tax rates are:
| Monthly Taxable Income (CLP) | Tax Rate |
|---|---|
| 0 - 852,804 | Exempt (0%) |
| 852,805 - 1,897,336 | 4.0% |
| 1,897,337 - 3,162,226 | 8.0% |
| 3,162,227 - 4,427,117 | 13.5% |
| 4,427,118 - 5,692,008 | 23.0% |
| 5,692,009 - 7,589,344 | 30.4% |
| 7,589,345 and above | 35.0% |
Note: These tax brackets are expressed in Chilean Monthly Tax Units (UTM) but have been converted to estimated CLP values for 2025 based on projected UTM value of approximately CLP 68,224. The actual values may vary based on inflation and government adjustments.
Mandatory Pension Contributions (AFP)
All Chilean employees are required to contribute to a pension fund administrator (Administradora de Fondos de Pensiones, or AFP). The basic mandatory AFP contribution is 10% of your gross salary, up to a maximum ceiling of 81.7 UF (approximately CLP 3,110,000 for 2025).
Additionally, there is a commission fee charged by each AFP that varies between 0.47% and 1.44% of your gross salary, depending on which administrator you choose:
| AFP | Commission Rate (2025 Projected) |
|---|---|
| Capital | 1.44% |
| Cuprum | 1.44% |
| Habitat | 1.27% |
| PlanVital | 1.16% |
| ProVida | 1.45% |
| Modelo | 0.58% |
| Uno | 0.69% |
The total AFP deduction is therefore 10% (mandatory contribution) plus the commission rate specific to your AFP provider.
Health Insurance Contributions
Chilean employees must contribute to either the public health system (FONASA) or a private health insurer (ISAPRE):
- FONASA: The contribution is a fixed 7% of your gross monthly salary, up to a maximum ceiling of 81.7 UF (approximately CLP 3,110,000 for 2025).
- ISAPRE: The contribution typically starts at 7% but can be higher depending on your specific health plan. Most ISAPRE plans range between 7% and 15% of your gross monthly salary.
Note that for high-income earners, the contribution is capped at 7% of 81.7 UF regardless of whether you're enrolled in FONASA or ISAPRE.
Unemployment Insurance
Unemployment insurance in Chile is funded through contributions from both employers and employees:
- Employee contribution: 0.6% of your gross monthly salary, up to a maximum of 122.6 UF (approximately CLP 4,670,000 for 2025).
- Employer contribution: 2.4% of your gross monthly salary (this does not affect your net salary calculation as it's paid by the employer).
For fixed-term contracts, the entire contribution (3%) is paid by the employer.
Step-by-Step: How to Calculate Your Net Salary in Chile
For those interested in understanding the detailed calculation process, here's how to manually calculate your net monthly salary in Chile:
-
Start with your gross monthly salary
For example, let's use CLP 1,500,000
-
Calculate AFP pension contribution
10% mandatory contribution: CLP 1,500,000 × 0.10 = CLP 150,000
AFP commission (using Habitat at 1.27%): CLP 1,500,000 × 0.0127 = CLP 19,050
Total AFP deduction: CLP 150,000 + CLP 19,050 = CLP 169,050
-
Calculate health insurance contribution
For FONASA (7%): CLP 1,500,000 × 0.07 = CLP 105,000
-
Calculate unemployment insurance
Employee contribution (0.6%): CLP 1,500,000 × 0.006 = CLP 9,000
-
Determine taxable income
Gross salary minus AFP, health, and unemployment contributions:
CLP 1,500,000 - CLP 169,050 - CLP 105,000 - CLP 9,000 = CLP 1,216,950
-
Calculate income tax
For taxable income of CLP 1,216,950 (which falls in the 4% bracket):
CLP 1,216,950 × 0.04 = CLP 48,678
-
Calculate net monthly salary
Taxable income minus income tax:
CLP 1,216,950 - CLP 48,678 = CLP 1,168,272
-
Calculate net annual salary
Monthly salary × 12 + gratifications (if applicable):
CLP 1,168,272 × 12 = CLP 14,019,264
Note: Chilean employees typically receive a 13th and sometimes 14th month salary (gratifications), which may increase your annual income.
Cost of Living Across Chile
While tax rates are consistent nationwide in Chile, the cost of living varies significantly between regions:
Chilean Salary Insights for 2025
Understanding where your salary sits compared to national averages can help with financial planning:
Average Monthly Salaries by Industry
| Industry | Average Monthly Salary (2025 Projected) |
|---|---|
| Mining | CLP 2,800,000 |
| Financial Services and Banking | CLP 2,300,000 |
| Information Technology | CLP 2,150,000 |
| Utilities and Energy | CLP 1,950,000 |
| Professional Services | CLP 1,800,000 |
| Construction | CLP 1,450,000 |
| Healthcare | CLP 1,350,000 |
| Education | CLP 1,200,000 |
| Manufacturing | CLP 1,100,000 |
| Retail | CLP 800,000 |
| Hospitality and Tourism | CLP 750,000 |
Income Distribution in Chile
Where does your salary sit within the Chilean income distribution?
- Top 10%: Earning above CLP 2,500,000 monthly
- Top 25%: Earning above CLP 1,600,000 monthly
- Median (50%): Earning around CLP 900,000 monthly
- Bottom 25%: Earning below CLP 650,000 monthly
- Bottom 10%: Earning below CLP 500,000 monthly
Minimum Wage in Chile for 2025
The Chilean minimum wage is adjusted regularly to account for inflation and economic growth. Based on recent trends and projections, the minimum wage in Chile for 2025 is expected to reach approximately CLP 500,000 per month (approximately USD 520).
This represents a significant increase from the 2023 minimum wage of CLP 440,000, reflecting the government's commitment to reducing income inequality and ensuring that wages keep pace with the cost of living.
It's important to note that some regions may have different minimum wage standards due to higher living costs, and certain industries may have collective bargaining agreements that establish higher minimum wages for their workers.
Tips to Optimize Your Net Salary in Chile
- Voluntary APV contributions: Making Voluntary Pension Savings (APV) can reduce your taxable income while building retirement savings. These contributions may offer tax benefits depending on the specific APV regime you choose.
- Select the right AFP: Compare commission rates among different AFPs. A lower commission rate can save you thousands of pesos annually.
- Optimize your health plan: Compare FONASA and ISAPRE plans based on your specific healthcare needs. While ISAPRE plans might cost more, they may offer better coverage for your personal situation.
- Housing benefits: Consider employer-provided housing benefits or housing allowances, which may be taxed at preferential rates.
- Education allowances: Some employers offer education allowances that are tax-exempt up to certain limits.
- Meal vouchers: These are often tax-exempt and can reduce your overall tax burden.
- Transport allowances: These can be tax-exempt and can be used for commuting expenses.