Health insurance — employee

Chile's health insurance requirement for employees mandates that employers deduct and remit a percentage of gross wages to either the public health system (FONASA) or an approved private health insurance provider (ISAPRE). As of 2024, the statutory contribution rate is 7% of gross monthly salary, with employees bearing the full cost through payroll deduction.

This rule covers all employees in Chile, including full-time, part-time, and fixed-term workers. The deduction applies to ordinary income and must be processed monthly. Employees may choose between FONASA (Fondo Nacional de Salud), the government-administered health fund, or a private ISAPRE (Institución de Salud Previsional) if they meet eligibility criteria. The choice of provider affects the deduction amount, as ISAPREs may charge different rates based on age, health status, and plan selection, though the employer's obligation to remit remains unchanged.

The requirement is governed by Law No. 18,966 (Health Insurance Law) and regulated by the Superintendence of Health (Superintendencia de Salud). Recent adjustments to contribution rates and ISAPRE regulations occur annually, with the most recent updates effective January 2024.

Employers must establish payroll systems capable of calculating and withholding the 7% health insurance contribution each pay period, maintaining accurate records of employee health fund elections, and remitting contributions to FONASA or the selected ISAPRE by the legally mandated deadline. Failure to remit contributions exposes employers to penalties and potential legal liability. Payroll teams should verify employee health fund status regularly and ensure deductions align with current statutory rates and individual plan selections.