Guaranteed Minimum Income Subsidy: New employer obligation

On May 3rd, 2020, Law No. 21,218 came into effect, creating a Subsidy to achieve a Guaranteed Minimum Income. The subsidy is an economic aid from the State for dependent workers with ordinary working hours (that is, more than 30 hours), which allows workers to increase their income in such a way that a liquid salary of $340,817 Chilean pesos can be guaranteed. The calculation of the subsidy to which each worker will be entitled is made based on the monthly gross remuneration of the regular working day contract and the weekly working hours agreed in said contract.

As of May 4th, 2022, the employer is obliged to apply for their workers to the subsidy. The application is made through the website https://www.ingresominimo.cl/empresa every month, within the first 15 days of each month.

The requirements to access the benefit are:

  • Being a dependent worker.
  • Work contract subscribed to the Labor Code.
  • Gross salary less than $452,477 Chilean pesos.
  • The contract must have an ordinary working day, that is, more than 30 hours and up to 45 hours per week.
  • The socioeconomic qualification of the worker must be within the 90% bracket according to the Social Registry of Homes (RSH).

It is also the obligation of the employer to inform about the existence of the subsidy to all its workers who have a gross monthly remuneration that entitles them to it. For purposes of complying with the foregoing, the Ministry of Social Development and Family has provided the following explanatory booklet: https://www.ingresominimo.cl/documentos/Cartilla%20employers.pdf

Failure to comply with the obligation to apply and inform the union and the workers about the existence of the benefit will be sanctioned with a fine of 5 to 10 UTM in the case of micro and small companies; from 20 to 40 UTM in the case of medium-sized companies; and from 30 to 60 UTM in the case of large companies.

The subsidy will be valid until December 31st, 2023, it will not be taxable, taxable, attachable or subject to any discount and will be extinguished by the end of the employment relationship or in the event that the worker ceases to meet the requirements for obtaining it.

For more information:
Law No. 21,218: http://bcn.cl/2tt5k

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