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Congress dispatched this Tuesday the bill that temporarily makes access requirements more flexible and increases the amount of unemployment insurance benefits and extends the validity of the Employment Protection Law., on the occasion of the Covid-19 pandemic, being ready for enactment.
In this way, the reform empowers the Executive to increase the validity of the law, which began to rule last April and ends next October, until March 2021, maintaining the replacement rate, set at 55 percent.
UNEMPLOYMENT INSURANCE 📰 | A bill of law that makes more flexible requirements for access to unemployment insurance benefits. https://t.co/RNZu6q0ixV
– Deputies and Deputies of Chile (@Camara_cl) September 1, 2020
The text defines that Workers affiliated to the insurance of Law 19,728, who are unemployed, may access until October 31, 2020 to the benefits charged to the Individual Unemployment Account and to the transfers charged to the Solidarity Unemployment Fund of said law, if they meet any of the alternative requirements indicated in Law 21,227, with respect to the number of contributions, which must be previously registered at the end of the contract.
The initiative indicates that the benefits paid out of the funds of the Individual Account for Unemployment will correspond to the 55 percent of average salaries accrued by the worker, in the last three months in which contributions are registered, prior to the end of the employment contract, thus raising the percentages established in the preceding norm (Law 21,227), the Chamber highlighted on its website.
In this way, it is established that, from the second and until the fifth month of use of the insurance, the amounts will be paid according to the following table:
Source: Chamber of Deputies and Deputies.
To finance these benefits, The resources of the Individual Account for Unemployment of the worker will be drawn and, when these are insufficient, they will be financed from the Solidarity Unemployment Fund.
The benefits that are paid out of the Solidarity Unemployment Fund, during the period of validity of this law, will be governed during the months indicated in the following table. The contribution will correspond to the percentage indicated in the second column and said benefit will be affected by the upper and lower values for each month, referred to in the third and fourth columns, respectively:
Source: Chamber of Deputies and Deputies.
It was also pointed out that, by means of a supreme decree, the parameters will be established that will allow, during the validity of the law, to increase the percentage of the average remuneration of the fifth line, which may reach a percentage of the average remuneration of 55 percent.
Likewise, the text indicates that the people who are receiving the fifth drawing from the Solidarity Unemployment Fund will have the right, during the validity of the law, to a sixth and seventh turn of benefit, and these may reach up to a percentage of the average remuneration of the 45 percent.
Finally, the dispatched text defines various procedures and formalities around the use of this benefit; allows domestic workers to access Emergency Family Income (IFE) benefits; determines the entry into force of the law and its period of application; and specifies the financing.
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