Health insurance — employee

Chile's health insurance requirement for employees mandates that employers deduct and remit 7% of an employee's gross monthly salary to either the public health system (FONASA) or a private health insurance provider (ISAPRE). This deduction is a non-negotiable component of payroll processing and represents the employee's contribution toward mandatory health coverage.

The rule is governed by Law No. 18,469 (Constitutional Act on Health) and further regulated by the Superintendence of Health Institutions (Superintendencia de Salud). Employees have the right to choose between FONASA, the state-run health fund, or an ISAPRE, a private health insurance company. The choice must be documented and communicated to the employer.

Employers are responsible for calculating the 7% deduction on gross salary, withholding the amount from employee wages, and remitting it to the selected health institution by the 10th of the following month. Failure to remit contributions on time incurs penalties and interest charges. Additionally, employers must maintain records of employee health insurance elections and contribution payments for audit purposes.

The contribution rate of 7% has remained consistent, though the list of authorized ISAPREs and FONASA coverage options may change periodically. Employers must ensure payroll systems accurately calculate deductions based on each employee's chosen health provider and maintain compliance with monthly remittance deadlines. Employees cannot opt out of health insurance; coverage is mandatory for all workers earning income in Chile.