EnglishNewsEMPLOYMENT SUBSIDY: EXTENSION OF APPLICATION FOR BENEFIT ONLINE HIRES UNTIL THIS JUNE 30, 2021

Julio 20, 2021

According to a study prepared by the Santiago Chamber of Commerce, Chile is the third country in the world that has lost the most jobs as a result of the pandemic. This subsidy is one of the measures of the Employment Protection Plan, which encourages the hiring of new people in companies, financing part of their salaries.

 

Ana Antonijevic

 

  • The benefit originally lasted until March 30, but in the context of the pandemic and the economic effects that it has generated in thousands of families throughout the country, the application window was extended to June 30 of this year.

 

  • Who is it for?
  • To companies that pay taxes in the first category or of small taxpayers according to article 22 of the Income Tax Law (small companies, artisans, supplementers, others).
  • Companies must hire people with a gross monthly salary less than or equal to three Minimum Monthly Income ($ 979,500).
  • The company must have the pension contributions paid within the established period, not declared.
  • The bank account entered for the payment of the subsidy must be associated with the company.
  • Increase their payroll of workers with current contracts, with respect to the payroll of workers they had as of July 2020.

 

  • What are the requirements for new workers?

These must:

  • Have an income less than or equal to $ 979,500.
  • Have an employment contract that began on or after September 29, 2020.
  • Be selected, at the latest, within 30 calendar days after the start of the contract.
  • Those who worked in a company that is part of the same business group of the beneficiary company are excluded.

 

  • How is the calculation of the subsidy?

GROUP A:

  • Women over 18 years of age
  • People with disabilities
  • Men from 18 years old and under 24 years old
  • Workers retired due to disability
  • Men 55 and over.

If the gross monthly remuneration is:

  • Less than $ 450,000: the subsidy is equal to 60% of the gross monthly remuneration.
  • Greater than or equal to $ 450,000, but less than or equal to $ 979,500: the subsidy will be equal to $ 290,000.

 

GROUP B:

  • Men from 24 to 54 and 11 months of age, and without a disability situation.

If the gross remuneration is:

  • Less than $ 500,000: the subsidy is equal to 50% of the gross monthly remuneration
  • Greater than or equal to $ 500,000, but less than or equal to $ 979,500: the subsidy will be equal to $ 250,000.

 

  • When is it paid? Both the first and subsequent payments will be made between the final days of the following month and the first five days of the month following the beginning of the employment relationship. In any case, prior verification of compliance with the application and payment requirements will be made, including the payment of pension contributions for the month in which the return occurred.

 

How valid is it? In the case of small and medium-sized companies, they will have a 10-month benefit period. For large companies, 8 months.

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