Saturday, 05 February 2022 01:26

Do you know how your AFP payments are made?

Written by Evelyn Alas

If you do not know how your Administradoras de Fondos de Pensiones (AFP) savings account payments are broken down, this article will explain it to you.

The Contribution Base Income (IBC) is the amount of the dependent worker's salary, or independent worker's income, which is used to determine the value of the contributions to the social security system: health, pension, labor risks and family compensation fund.

In addition, the maximum IBC as of january 1, 2022, its monthly amount is US$7,045.06 million.

For the commerce, service, industry and sugar mills sector it is US$365, textile or clothing maquila US$359.16, sugar cane harvesting, coffee processing is US$272.66 and for agricultural workers it is US$243.46.

Likewise, the contribution rates for affiliates are 15% contribution, for the employer 7.75%, with 1.90% commission, 1.04% disability and survival insurance premium, 0.86% AFP, in addition, 5% solidarity guarantee account and 0.85% savings.

For the employee and savings it is 7.25% with 8.10% in the savings account for affiliates.

As for the contribution rate for pensioners or members with legal retirement age who continue working will have a 14.60% contribution, the employer 7.35% and the employee with savings 7.25%, with 1.5% AFP commission, 5% solidarity guarantee account, 0.85% savings and 8.10% for the member's savings account.