160 thousand per worker suspended and with limitations in the distribution of profits: Piñera announces the expected employment subsidy plan

This Sunday the President of the Republic, Sebastián Piñera, announced the expected new employment subsidy within the framework of the Economic Reactivation Plan “Step by Step, Chile recovers” in an activity at La Moneda.

Piñera explained that the subsidy will have two lines to which the company can apply, one with a focus on maintaining suspended workers and another on new hires, which in total will require an investment of close to US $ 2,000 million.

The first line, which seeks to promote the maintenance of workers suspended under the Employment Protection Law, will consist of the delivery of a contribution equivalent to $ 160,000, for up to 6 months, for each worker who returns to his job after having been with his contract suspended and whose remuneration is up to three minimum earnings ($ 961,500).

The President of the Republic stated that “this subsidy for suspended jobs can only be accessed by companies that have suffered sales drops of 20% or more, in the April-July four-month period of this year, compared to the same period of the previous year.” .

For its part, the second line focused on promoting new hiring of workers will be through a contribution that the State will deliver to companies, equivalent to 50% of gross monthly remuneration with a ceiling of up to $ 250,000 for each new additional worker hired. , regarding the payroll of workers reported as of July 20, 2020.

Piñera added that companies with more than 200 workers must maintain at least 80% of the payroll of workers they had at that date and that for young people between 18 and 24, women and people with disabilities, the subsidy will be 60% of the gross monthly remuneration and will have a ceiling of up to $ 270 thousand pesos.

In addition, the President specified that to access both subsidies, companies with more than 200 workers as of July this year, will not be able to distribute profits, except for the legal minimum, during the period that they receive these benefits.

Applications for subsidies can be made from this Monday until March 31, 2021, through the website www.subsidioalempleo.cl. Meanwhile, the first payments will be made within 30 days of approval.