The last week of January 2025, the discussion on the modification of the Chilean pension system was closed :

New 7% contribution charged to the employer

The new contribution will be added to the 1.5% that employers already contribute to the Disability and Survivors' Insurance (SIS). Thus, the total contribution will be 8.5% .

Of this total, 4% will be managed by a new Social Security : 2.5% to the SIS and compensation for women and 1.5% as a contribution with protected profitability.

The remaining 4.5% will go to individual capitalization.

These changes will be implemented gradually over a period of 9 years , which could even be extended to 11 years, according to the collection assessment of the Tax Compliance Law.

 

Compensation for women

This benefit will be granted by Social Security to women due to their greater life expectancy compared to men.

The aim is to ensure that a woman and a man who retire at age 65 and have the same amount of savings can receive the same pension .

This compensation will have a minimum value of 0.25 UF.

 

Benefit per year of contributions

The new pension system sets a contribution of 0.1 UF for each year that a worker contributes , with a limit of 25 years.

In the first decade of implementation of this reform, women will be able to access this benefit with at least 10 years of contributions . After this stage, the minimum threshold will be 15 years.

In the case of men, they must have at least 20 years of contributions .

 

Increase in PGU

The Universal Guaranteed Pension (PGU) will also undergo changes and will increase to CLP 250,000 .

According to the project, the implementation of this measure will be gradual and, within a period of 6 months, it will go to beneficiaries over 82 years of age . After 18 months, it will go to beneficiaries over 75 years of age and, finally, after 30 months, it will go to beneficiaries over 65 years of age.

In the case of Valech , Rettig and exonerated beneficiaries , the government details that they will access with the same gradualness and age cuts.

 

Industry regulations

Another of the changes in the reform is that new regulations will be implemented for the industry.

In fact, the text states that every two years 10% of current AFP members will be put out to tender at random . This is in order to help lower costs for people.