Contact: LeAnne Stefl
Effective 29 September 2020, under the Employment Subsidy program, qualifying employers can receive federal subsidies covering eligible employee remuneration. These subsidies enable employers to re-hire employees whose employment contract was suspended as a result of COVID-19, preventing further job losses.
The wage subsidy program came into effect on 29 September 2020. Applications will be open until 31 March 2021 at subsidioalempleo.cl.
Wage subsidy for employment contract suspension
The wage subsidy for employment contract suspension, known as the “Regresa” subsidy program, is focused on re-hiring employees whose employment contracts were suspended as a result of COVID-19.
Minimum reduction in revenues
Employers must demonstrate that they meet revenue decline thresholds to qualify for the return subsidy. The minimum revenue decline to qualify is 20% or more for the period from 1 April 2020 to 31 July 2020, as compared to the respective months in 2019.
Employers can receive federal subsidies covering CLP 160,000 for up to 6 months per employee who returns to work and whose remuneration is up to CLP 961,500 per month.
Employees whose employment contract was suspended for at least 1 day between the period of 28 August and 28 September 2020, and whose remuneration is under CLP 961,500 per month.
Wage subsidy for preventing further job losses
The wage subsidy known as the “Contrata” subsidy program is focused on preventing further job losses. There is no minimum revenue decline threshold to be met to apply for the subsidy program. The subsidy has two limits. Applicants are divided into groups “A” and “B” based on employee gender, age, and disability.
Subsidy for group A
The subsidy will be 60% of the gross monthly salary and will have an upper limit of CLP 270,000 for female employees over 18 years old, people with disabilities, and male employees between ages 18 and 23.
Subsidy for group B
The subsidy will be 50% of the gross monthly salary and will have an upper limit of CLP 250,000 for male employees 24 years of age without disabilities.
Additionally, employees' gross monthly salary in both groups A and B must be less than or equal to 3 times minimum monthly income (CLP 961,500).