End-to-end monthly payroll workflow for Chilean employers: compute gross-to-net liquidaciones de sueldo, calculate and remit AFP/Fonasa/Isapre cotizaciones previsionales, apply Segunda Categoría withholding tax, and declare retenciones on Formulario 29 via the SII portal.
Confirm the legal employment relationship and worker classification for each person on the payroll run. Chile draws a sharp line between dependientes (employees under Código del Trabajo) and independientes (boleta de honorarios workers): the cotización regime, withholding mechanism, and form codes differ completely. Also identify any foreign nationals who may be covered by a bilateral social-security agreement that displaces Chilean cotizaciones.
Compute each employee's remuneración bruta for the pay period. In Chile the minimum wage (ingreso mínimo mensual) sets an absolute floor — CLP 500,000/month for workers aged 18–65 as of mid-2025. Remuneración bruta includes sueldo base, horas extraordinarias (recargo mínimo 50% on the ordinary hourly rate per Art. 32 Código del Trabajo), gratificación legal (4.75% of remuneraciones capped at 1.5 IMM per month, or the 25%-of-net-profits annual method), and any agreed bonuses or asignaciones. Gratificación garantizada is the more common monthly method for SMEs.
Deduct mandatory social-security cotizaciones from each employee's remuneración imponible. The imponible base is capped at the tope imponible (87.8 UF/month, CLP-equivalent varies). The employee pays: AFP 10% + AFP comisión (0.46%–1.44% depending on AFP) + salud 7% (Fonasa, or minimum 7% toward Isapre). The employer pays: SIS (Seguro de Invalidez y Sobrevivencia) ~1.49% and ATEP/mutualidad (Seguro de Accidentes del Trabajo, 0.93% base + variable surtax by risk category). From 2025, the phase-in under Ley 21.133 is complete — 100% of independientes' renta imponible is also subject to cotización.
Apply the monthly Segunda Categoría withholding tax (Impuesto Único a los Trabajadores) on each employee's renta líquida imponible (gross minus cotizaciones). This is a progressive monthly scale set annually by SII, expressed in UTM. For 2025 the brackets start at 0% up to 13.5 UTM/month and reach 40% above 310 UTM/month. The credit for cotizaciones already deducted avoids double taxation. The employer acts as withholding agent and must remit by the 12th of the following month.
Consolidate all payroll withholdings and employer cotizaciones into the monthly Formulario 29 declaration on the SII portal. F-29 captures Segunda Categoría retenciones (Code 163 for employee income tax), boleta de honorarios retenciones (Code 166, 13.75% withheld from independent contractors), IVA, and other taxes in a single monthly filing. The deadline is the 12th calendar day of the following month (or next business day). Cotizaciones are remitted separately via the Previred portal to each AFP and health fund — this phase coordinates both deadlines.
Submit cotizaciones through the Previred portal and distribute to each AFP, Fonasa/Isapre, and mutualidad. Previred is the mandatory electronic clearing house for employer payroll contributions in Chile. Deadlines follow the same 12th-of-month rule as F-29. After remittance, issue final liquidaciones de sueldo to all employees, archive the Comprobante Previred and F-29 folio, and flag any employees with Isapre above-7% top-ups or ATEP incidents that require separate documentation.
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