On Sunday, the President of Chile, Sebastián Piñera, introduced the employment subsidy plan, designed to boost economic reactivation and help restore the country’s labor force by creating up to one million jobs.
The initiative, which involves an investment of US$2 billion, aims to generate new jobs and protect existing employment by creating two subsidies for companies that hire or reinstate furloughed workers.
“Creating and recovering lost jobs and reactivating our economy are essential to providing Chilean families security and opportunities to develop their full potential and improve their quality of life,” the President commented at a ceremony at La Moneda Palace, accompanied by Labor Minister, María José Zaldívar, Treasury Minister, Ignacio Briones, and Women's Minister, Mónica Zalaquett.
The hiring subsidy will be equivalent to 50% of the gross monthly remuneration of the new worker for which the company applies, with a cap of Ch$250,000 (US$320) per month.
However, this subsidy has a special focus on women, youth 18 to 24 years old and people with some type of disability. In those cases, the benefit will be 60% of each new hire’s gross salary, capped at Ch$270,000 (US$345) per month.
In addition, the President announced a subsidy for companies reinstating workers that have been furloughed under the Employment Protection Law. In this case, the amount is Ch$160,000 (US$205) per month per worker.
These benefits will be given for up to 6 months and applications may be submitted from next week until March 31, 2021, through the www.subsidioalempleo.cl website.
The President also commented on the extension of the Employment Protection Law and an increase in payments.
“We can create opportunities for all Chilean families to develop their talents and resume a path toward making their projects and dreams come true and building a fuller, safer and happier life,” the President said.
The job creation program is part of the President’s “Paso a Paso, Chile Se Recupera” (Chile Recovers Step-by-Step Plan), which focuses on four main areas of action: job creation; fostering public and private investment; supporting small and medium enterprises and facilitating and simplifying permits.
“The mission and challenge of creating one million jobs is a great, noble cause, which I am sure will motivate and engage all willing Chilean men and women,” concluded the President.