Government improves readjustment proposal and achieves unanimous support from the Chamber



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After the initial rejection, the Minister of Finance, Ignacio Briones, achieved strong support for his readjustment project, since the Chamber of Deputies approved it this Tuesday by 131 votes, with a single abstention from the deputy Florcita Alarcón (PH).

This support was possible because the government modified the initial proposal, broadening the range of benefits and agreeing to deliver a bonus at the end of the conflict, equivalent to half of what was delivered last year. The new offer that made it possible to unblock the procedure was presented to the Finance Commission and consisted of expanding the cut-off section for benefits and delivering a conflict termination bond. “We proposed a tranche (for the 2.7% readjustment) of salaries of up to $ 1,500,000 that covers 80% of the employees. It has been proposed to raise it to $ 2,500,000, which would mean remuneration of $ 3,250,000, which seems to us a very high limit, but we are ready to find a middle point and bring it closer to the $ 2 million tranche, ”the minister indicated as the first proposal. On that amount, the readjustment will be 0.8%.

Briones puts on the table an end-of-conflict bond to unblock the public sector readjustment project
Chamber of Deputies approves insistence and resumes processing of the public sector readjustment project
Senate approves insistence and project to readjust the public sector returns to the Chamber

Then he argued that he was in a position to deliver a bonus for the end of the conflict, “but not 100%, but half and for an exceptional time.” In simple terms, the bonus would be $ 98,000 for incomes up to $ 720,000, and for salaries above that limit and up to $ 2,000,000, the bonus will approach $ 50,000.

The deputies in the commission valued the proposal and requested that the exceptional bonus of $ 200,000 to be awarded to that sector was included in the health fees, to which Briones also committed, although for this he must first look for the payrolls of those hired in the last 7 months full time.

In this way, the bill will be seen this Wednesday in the Senate, which if approved as it was sent by the House, would go into law. If this is not the case, it should return to the third process of the Chamber.

This last scenario could materialize if the government insists on some matters that were rejected in the House vote and that are part of the miscellany contained in the readjustment project.

Specifically, the deputies ruled out three articles. The first of them, 53, empowered the executive directors of the Solidarity and Social Investment Fund, the National Irrigation Commission, the Civil Service, Sernapesca, and the Superintendencies of Health and Pensions, to follow and generate telework plans until 2023. The opposition deputies noted that this must be addressed with greater rigor in a special law to verify the right to disconnection and the costs of working at home.

“This was an agreement with the officials of those services. It is regrettable that we cannot move in this direction. I hope the Senate can approve it ”, remarked the Minister of Finance.

Another rejected article refers to the transfer to the plant of 4,000 people who work for fees, because it was recalled that the state commitment is to transfer 8,000 employees per year.

More about Public sector

The last rejected contemplated special conditions with compensation in between for the retirement of officials over 75 years of age as of December 31, 2020, generating the vacancy in the position. “This is brutal discrimination,” warned deputy Manuel Monsalve (PS).

The project contemplates a readjustment of 2.7% to rents over the $ 2,000,0000, which according to Minister Briones is equivalent to an income close to $ 2,600,000 in the central power. In principle, this cut was $ 1,500,000.

Above that cut, the salary increase will be only 0.8%.

In addition, the vacation bonus was reduced to $ 62,817 for people with incomes of up to $ 794,149.

And for officials with incomes greater than that amount and less than $ 2,000,000, this bonus will amount to $ 43,814.

During the first discussion of the readjustment project, the government was criticized for not delivering a bond to end the conflict.

Now, in the second step, the minister agreed to grant it, although it is not the same proportion as in previous years, noting that it was not an acquired right, but only once.

Thus, those who obtain a remuneration of less than $ 750,000 will receive a contribution of $ 98,000; and those with salaries between that amount and $ 2,000,000 will get $ 48,000.

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