Exemption of social security payments for foreigners
In Chile, some foreign workers can be exempt of the obligation to pay contributions to the social security or recover the payments they have made to social security when they leave the country.
This exemption only applies to the payments related to the pension scheme. Health insurance and unemployment insurance have to be paid in Chile
In Chile, foreign workers that have the “technical” quality, as defined by Chilean law, are not required to pay contributions to Social Security.
For this exemption to apply, the law establishes the following rules:
- Workers must be “technical”, at least. “Technical Workers” are defined as those who have knowledge of a certain science or art that can be proven by documents that show professional or specialized studies. Of course, these documents must be legalized and, if necessary, translated by the Foreign Relations Ministry.
- The worker must be affiliated with a foreign Social Security system that covers at least sickness, disability, old age, and death. This can be proven by a certificate from the foreign Social Security institution that the worker belongs to, properly legalized, that shows coverage of this benefits, and can be also applied to workers that are already receiving a pension.
- The employment contract must show the employee’s will to maintain the required affiliation (except for workers already receiving a pension).
The employer has to give notice to the corresponding Chilean Social Security institution via written letter, and the exemption will apply from the date of this notice, and the employer must also be ready at all times to prove to the administration or the corresponding Social Security institution that this exemption applies, by the means listed above.
The employees have also the chance when they leave the country because their work contract has ended, to receive the payments made to the AFP back, and to receive the insurance payment, even if they have resigned. In this case, they must make an application to the AFP with a copy of the document that proves he or she is a “technical worker”, among other documents.
Last modified: 04/11/2020