Unemployment insurance

For permanent contracts, the insurance is funded through a mandatory contribution from the employee of 0.6% and a required contribution from the employer of 2.4%, both calculated based on the employee's taxable income, with a cap of 120.4 UF (approximately USD 4,477) as of January 1st, 2023.

For fixed-term contracts, the employer fully covers the insurance rate at a rate of 3%.

The cap is adjusted annually according to the index of real remunerations determined by the National Statistics Institute or its substitute, between November of the penultimate year and November of the last year, for the upcoming year.

The adjusted taxable cap will be in effect from the first day of each year.