Chile debating future employer contribution in social security pension

The Chilean government is currently debating the introduction of employer contributions to the social security pension system. Currently, only employees contribute to the retirement and healthcare systems in Chile. The government is proposing the introduction of a 4 percent employer contribution rate phased in over an eight-year period. This would bring the total pension contribution rate from the current 10 percent minimum paid exclusively by employees to a minimum of 14 percent of covered earnings paid by employers and employees. An additional new employer contribution of 0.2 percent of covered earnings would be used to finance a supplemental pension benefit for seniors with greater needs due to dependency. The legislation is currently being debated in the Chilean National Congress.