Employee Benefits in Chile 2021

Summary

Chile has a well-developed social security system. Both companies and employees equally contribute to social security schemes. Employees must primarily contribute to nine statutory social security organizations: the statutory health insurance fund, the statutory long-term care insurance fund, the statutory short-term sickness fund, the statutory long-term disability fund, the statutory pension insurance fund, statutory accident insurance, statutory maternity, and paternity fund, statutory family benefits, and the statutory unemployment insurance fund. Employers deduct tax and social security contributions from the gross wages of employees and directly transfer them to the tax office. For all the components of social security, there is a common fund. However, employees have the option to individually choose a health insurance provider. The increasing share of elderly people in the population coupled with a relatively low birth rate has forced the government to adopt several reforms to ensure a better social welfare system for future generations.

The report provides in-depth industry analysis, information and insights of the employee benefits in Chile, including: overview of the state and compulsory benefits in Chile, detailed information about the private benefits in Chile, insights on various central institutions responsible for the administration of the different branches of social security and the regulatory framework of the employee benefits in Chile.

Key Highlights

• Superintendencia present (Superintendent of Pensions, SP): is an autonomous public body, which relates to the Ministry of Labour and Social Protection. The controlling body represents the state within the Chilean pension system.
• Instituto de Previsión Social (Institute of Social Security, IPS): is a public entity created to manage the system of solidarity pensions and the contributory pensions deriving from the old pension system. The IPS performs its duties under the supervision of the president, through the Ministry of Labour and the Secretariat for Social Security
• Chile has a comprehensive social security system, which protects its citizens from illness, disability, old age, unemployment, and poverty
• In Chile, (APV-Ahorro Previsional Voluntario) is the third pillar in the Chilean pension system which provides with private benefits.

Scope

This report provides a detailed analysis of employee benefits in Chile -

• It offers a detailed analysis of the key government-sponsored employee benefits, along with private benefits
• It covers an exhaustive list of employee benefits, including retirement benefits, death in service, long-term disability benefits, medical benefits, workmen's compensation insurance, maternity and paternity benefits, family benefits, unemployment, leave and private benefits
• It highlights the economic and regulatory situations relating to employee benefits in Chile

Reasons to Buy

• Make strategic decisions using in-depth information related to employee benefits in Chile.
• Assess Chile's employee benefits market, including state and compulsory benefits and private benefits.
• Gain insights into the key employee benefit schemes offered by private employers in Chile.
• Gain insights into key organizations governing Chile's employee benefits, and their impact on companies.