Chile (CL)
South America's most stable and developed economy, Chile stretches 4,300 km from the Atacama Desert to Patagonia.
2026 Annual Changes — Chile
Updated thresholds, benefits, and regulatory changes effective this year.
Chile's major policy changes in 2026 are dominated by the phased implementation of the 2024 Pension Reform (Ley 21.719), which introduces employer AFP contributions for the first time in Chile's history. The minimum wage (salario mínimo) rose to CLP $539,000 from 1 January 2026 (Ley 21.751), with a second IPC-linked adjustment to ~CLP $546,546 submitted to Congress May 2026. Ongoing labour hour reductions under the 40-hour week law (Ley 21.561) and digital public services expansion also mark the year.
Key Changes for 2026
| Category | 2026 Value | Previous | Effective Date |
|---|---|---|---|
| Pension Reform (Ley 21.719) Employer AFP contribution continues phased increase under Ley 21.719. From August 2026, total employer contribution reaches approximately 3.5% of gross salary: 0.1% to worker's individual AFP account + 0.9% as a loan to the FAPP solidarity fund + 2.5% to FAPP. The rate increases annually toward 6% by 2033. | Approximately 3.5% total employer contribution from August 2026: 0.1% individual account + 3.4% FAPP (solidarity/loan). Verify current schedule at spensiones.cl. | Approximately 1–2% employer contribution (2024–early 2026 phase) | 2026-08-01 (ongoing phase-in) |
| Minimum Wage (Salario Mínimo) Minimum wage raised to CLP $539,000 effective 1 January 2026 per Ley 21.751 (Official Gazette Jun 2025). A further IPC-linked increase to approximately CLP $546,546/month was submitted to Congress in May 2026 — verify current rate at dt.gob.cl. | CLP $539,000/month (workers aged 18–64, from 1 January 2026). Second increase pending approval: ~CLP $546,546 from May/June 2026. Workers under 18 or over 65: CLP $402,082/month. | CLP $510,000/month (2025) | 2026-01-01 (second adjustment pending) |
| Maximum Weekly Work Hours (Ley 21.561) The 40-hour work week law (Ley 21.561) continues its phased reduction. Weekly hours reduced to 44 in April 2024; the next step reduces to 42 hours on 26 April 2026. Full 40-hour maximum reached by April 2028. | 42 hours/week maximum (effective 26 April 2026) | 44 hours/week (from April 2024); 45 hours pre-reform | 2026-04-26 |
| IVA (VAT) Rate IVA remains at 19%. No changes to the rate or major exemption structure in 2026. | 19% | 19% | 2026-01-01 |
| UTM (Unidad Tributaria Mensual) The UTM is adjusted monthly by SII based on CPI (IPC). The annual UTM used for income tax bracket calculation updates each month. | ~CLP $68,000/month (indicative — SII publishes the exact UTM each month at sii.cl) | CLP ~$65,000/month (2025 approximate) | Monthly (SII publishes at start of each month) |
| FONASA / GES Health Guarantees GES (Garantías Explícitas en Salud) expanded to 87 priority diagnoses with guaranteed maximum wait times and costs. Additional mental health and chronic disease conditions added in 2025–2026 updates. | 87 GES priority diagnoses with guaranteed care | 85 GES diagnoses (2024) | 2026-01-01 |
| Boleta de Honorarios Retention (Independent Workers) Provisional income tax retention rate for boleta de honorarios remains at 13.75%. AFP and FONASA contributions are now fully mandatory for independent workers (phase-in completed). Workers on boleta now have the same social security obligations as employed workers. | 13.75% income tax retention + 10% AFP + 7% FONASA (full obligations) | Gradual phase-in in prior years | 2026-01-01 |
| SOAP (Mandatory Vehicle Insurance) Rates SOAP annual rates adjusted based on actuarial review. Standard passenger car rates: CLP $15,000–22,000/year. Commercial vehicles higher. SOAP can be purchased from any licensed insurer, Compañías de Seguros, or at gas stations. | CLP $15,000–22,000/year (standard passenger car) | CLP $14,000–21,000 (2025) | 2026-01-01 |
| Clave Única Digital Identity Expansion Clave Única required for additional government services in 2026, including Servicio Nacional de Migraciones online applications, SII tax filing, and FONASA enrollment. ClaveÚnica authentication expanded to private sector partners. | Required for sermig.gob.cl migration applications, SII Operación Renta, fonasa.cl | Required for subset of services (prior years) | 2026-01-01 |
| Santiago Metro Fares (Bip! Card) Metro fares adjusted for inflation. Peak and off-peak differential maintained. | CLP $750 (off-peak) / CLP $950 (peak) — verify at metro.cl as fares are reviewed annually | CLP $720 (off-peak) / CLP $900 (peak) (2025 approximate) | 2026-01-01 |
| Pension Basic Solidarity Amount (PBS) Pensión Básica Solidaria adjusted annually for inflation (UF-linked). Approximately CLP $214,000/month in 2026. | ~CLP $214,000/month | ~CLP $205,000/month (2025) | 2026-01-01 |
| Digital Tax Services (SII) SII expanded the mandatory electronic invoicing (DTE — Documento Tributario Electrónico) requirements. All businesses, including microempresas, now required to issue electronic factura and boleta. Paper invoices fully phased out. | 100% DTE mandate for all registered taxpayers | Phased implementation (2021–2025) | 2026-01-01 |
January Checklist
Actions to take each January when new rates take effect.
- 1
Confirm the January UTM at sii.cl to understand your income tax bracket for the year
- 2
Verify your AFP and check if switching to a different fund type (A–E) is appropriate based on age and risk tolerance at my.afp.cl
- 3
Update your FONASA group classification if income changed — visit fonasa.cl or nearest FONASA office
- 4
Confirm SOAP car insurance is current for the new year — renew at any insurer, gas station, or online
- 5
Check your employment contract: confirm that the employer employer AFP reform contribution is appearing in your payslip from January
- 6
If self-employed (boleta de honorarios): confirm new AFP and FONASA contribution amounts are being calculated correctly for the new minimum wage and UTM
- 7
File for Asignación Familiar or SUF if you had children or dependants change status in the previous year
- 8
Review your AFP fund allocation — consider switching from Fund E (conservative) to Fund C or D if you are under 45 and have a long investment horizon
- 9
Check the 40-hour week schedule with your employer — confirm the 2026 hours reduction has been applied to your contract or work agreement
- 10
If on a Visa Temporaria: check the expiry date and plan your renewal application at least 90 days before expiry via sermig.gob.cl
Where to Track Annual Changes
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SII (Servicio de Impuestos Internos): sii.cl — UTM monthly values, tax thresholds, IVA rules, DTE requirements
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Superintendencia de Pensiones: spensiones.cl — AFP fee tables, pension reform implementation updates, AFP performance
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FONASA: fonasa.cl — GES updates, FONASA group contribution thresholds, coverage changes
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Dirección del Trabajo: dt.gob.cl — minimum wage updates, labour law changes, 40-hour week phase-in schedule
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Servicio Nacional de Migraciones: sermig.gob.cl — immigration law changes, visa processing updates
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CMF (Comisión para el Mercado Financiero): cmf.cl — banking and insurance regulation changes
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Banco Central de Chile: bcentral.cl — UF (Unidad de Fomento) daily value, monetary policy
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Biblioteca del Congreso Nacional (BCN): bcn.cl — official text of all new laws
Chile uses the UF (Unidad de Fomento) — an inflation-indexed unit of account — for many financial contracts including rent escalations, property prices, student loans, and some insurance premiums. The UF value is published daily by the Banco Central de Chile at bcentral.cl. All rental contracts indexed to UF will automatically adjust monthly. Factor UF into any long-term financial planning in Chile.
Annual Changes
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