Legal Alert: guaranteed minimum income and extension of leave in case of death

May 11, 2022 / By: Luis Parada, Ignacio Abogabir and Iñaki Irrisarri.

  1. Obligation to apply for the “guaranteed minimum income” (Law No. 21.218):

As of May 2022, employers will have the obligation to apply, in a monthly basis, those employees with a gross salary of less than $452,477 CLP (approx. USD 530) to the “guarantee minimum income” policy, which will grant the employees to a subsidy paid by the government. Also, all the employees with such salary must be informed about the existence of this benefit policy.

The purpose of this public policy is to guarantee employees a liquid amount salary of $340,817 CLP (approx. USD 400) and the aforementioned application must be made on:, no later than the 15th of each month.

If for technical reasons the company is not able to apply on the indicated date, the employees can apply for themselves from the 16th of the month with their  unique access code for governmental procedures (clave única del Estado). In such case, the company must provide the employees with a primer with the official information available on the indicated platform.

It is reminded that it is not possible to reduce the salaries of employees benefiting from this subsidy.

In case the company does not fulfill this monthly obligation, it will be exposed to fines ranging from 5 to 60 monthly tax units, depending on the size of the company.

  1. Extension of leave in case parents and siblings deaths (Law No. 21,441):

On May 9, 2022, Law No. 21.441 was published in the Official Gazette, which amends the Labor Code by extending the leave in case of death of the employee’s father or mother from three to four working days. Likewise, from now on, the death of a brother or sister also authorizes the employee to make use of this benefit for the same period.

The entry into force of this benefit coincides with the date of publication in the Official Gazette, that is to say, from May 9.

For more information contact:
Luis Parada

*This report provides general information on certain legal or commercial issues in Chile and is not intended to analyze in detail the matters contained herein, nor is it intended to provide specific legal advice on such matters. The reader is advised to seek legal assistance before making any decision regarding the matters contained in here. This report may not be reproduced by any means or in any part without the prior consent of DLA Piper Chile SpA. (c) DLA Piper Chile SpA 2022.