As part of the gradual implementation of Chile's Pension Reform (Law No. 21,735), changes to the employer's pension contributions begin to apply from the August 2026 remunerations onward. The employer's additional contribution rises from the current 1% to 3.5% in the first bracket and continues to increase gradually up to a cap of 8.5% of taxable remuneration.
Starting with the August 2026 remunerations, the Protected Return Contribution (CRP) is introduced — a new employer-paid contribution equal initially to 0.9% of the taxable remuneration of each dependent worker affiliated to an AFP. The CRP is allocated to the Autonomous Pension Protection Fund and helps finance the years-contributed benefit.
In addition, the Disability and Survivorship Insurance (SIS), already paid by the employer, will begin to be collected by the Social Security Institute (IPS) through Previred, as part of the Social Security Pension System.
The employer's total contribution increases in steps under the fourth transitional article of Law No. 21,735:
| Period (accrual) | Individual account | Protected Return (CRP) | Life Exp. & SIS | Total contribution |
|---|---|---|---|---|
| August 2025 – July 2026 | 0.1% | 0% | 0.9% | 1.0% |
| August 2026 – July 2027 | 0.1% | 0.9% | 2.5% | 3.5% |
| August 2027 – July 2028 | 0.25% | 1.5% | 2.5% | 4.25% |
| August 2028 – July 2029 | 1.0% | 1.5% | 2.5% | 5.0% |
| August 2029 – July 2030 | 1.7% | 1.5% | 2.5% | 5.7% |
| August 2030 – July 2031 | 2.4% | 1.5% | 2.5% | 6.4% |
| August 2031 – July 2032 | 3.1% | 1.5% | 2.5% | 7.1% |
| August 2032 – July 2033 | 3.8% | 1.5% | 2.5% | 7.8% |
| From August 2033 (cap) | 4.5% | 1.5% | 2.5% | 8.5% |
Source: fourth transitional article, Law No. 21,735.
The employer's contribution increases gradually from 1.0% up to a cap of 8.5% of taxable remuneration, reaching its final value in month 101 following the law's publication (August 2033), unless the lower-revenue adjustment clause of Law No. 21,713 applies, in which case the schedule is extended.
At its final value of 8.5%, the contribution is split three ways: 4.5% to the worker's individual capitalization account, 1.5% to the protected-return contribution (CRP) and 2.5% to the Autonomous Pension Protection Fund, to finance the compensation for life-expectancy differences and the disability and survivorship insurance. From month 241 onward, the protected-return portion is gradually transferred to the individual account until it reaches 6.0%, without changing the 8.5% total.
The increase is reflected gradually in the total cost of payroll. Each annual step raises the employer contribution on each worker's taxable remuneration, so it is advisable to factor it into labor-cost planning and to ensure that payroll, electronic pay-ledger and contribution-filing processes correctly reflect the new rates from August 2026.