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MIL OSI Translation. Region: Spanish / Latin America / UN –

Source: Chamber of Deputies of Chile

The project that creates a subsidy to achieve a guaranteed minimum income (bulletin 13041) was in a position to pass its second procedure to the Senate, after the Chamber of Deputies Chamber approved the proposal, mainly according to the guidelines proposed by the Finance Commission.

In the debate, which began yesterday with the reading of the reports of the Labor and Finance Commissions, the various speeches expressed the opposing views on the subject and which the same texts presented to the Chamber reported, particularly in relation to the amount and universe of the beneficiaries.

The text entered by the Executive indicated that workers who receive a monthly gross income of less than $ 370,000 will be entitled to the subsidy, with a maximum subsidy cap of $ 49,000, which guaranteed an increase to $ 350,000 in compensation. Hence, the tax contribution declined to zero when it reached $ 370 thousand.

In the Labor Committee, among other changes, it was decided to raise the universe of beneficiaries to those who receive gross monthly salaries of less than $ 550,336 and with a subsidy value equivalent to 100% of the difference between gross monthly remuneration and income current monthly minimum.

In contrast to the above, the Treasury Commission sought to restore the original meaning of the initiative, although also raising the universe of favored workers with respect to the original proposal, leaving this in those with gross monthly salaries equal to or greater than $ 301 thousand e less than $ 384,363.

This wording, which was the one that finally ratified the Chamber by majority vote, also considered a new maximum tax contribution cap: $ 59,200. Thus, taking the lower range of the universe of remuneration ($ 301 thousand) plus the maximum contribution, there is a guaranteed gross base amount of $ 360,200. Henceforth, as in the case of the original project, the tax contribution decreases as progress is made towards the top of the remuneration affecting profit.

Among the considerations put on the table, the ruling stressed the need to move forward on the issue urgently, to support the most vulnerable families and increase their monthly income. The opposition, meanwhile, criticized that a larger amount is not defined and that the minimum discussion of the minimum income fund, which should present an increase in March next year, should not be advanced.

Voting

The idea of ​​legislating the project was addressed in three votes. The first one allowed the ratification of the norms without a special quorum of approval, while the second one allowed to support those provisions that required a minimum of 78 favorable votes. The third, related to a rule with a constitutional organic law quorum, was rejected by not the 89 votes required for approval. This point affected the new task of inspection entrusted to the Directorate of Labor.

Then, the Chamber proceeded to a series of votes in particular, in which it was then, the Chamber proceeded to a series of votes in particular, which confirmed the inadmissibility of the standards set by the Labor Commission, for example, in relation to increasing the compensation ceiling to $ 550 thousand, and those proposed by the Treasury were ratified in their compensation.

However, in this voting framework a silver standard was supported from the aforementioned commission that limits the application of the benefit to workers working in SMEs, that is, those who are hired or subcontracted by a company whose sales revenue does not exceed 75,000 UF annually from the last calendar year.

Other standards

Together with the aforementioned definitions, the project establishes that the monthly tax charge subsidy will be effective for dependent workers governed by the Labor Code, with a current employment contract and affected by an ordinary work day exceeding 30 hours per week.

The text of the project then advances in describing the monthly amount of the subsidy and the calculation basis that will apply to its application, adding in this framework the specification of what is meant by maximum contribution, value affected by the subsidy and gross monthly compensation.

Next, it is specified that, for those dependent workers whose monthly gross remuneration is less than $ 301 thousand and their ordinary workday is the maximum defined hours (today 45 hours), the monthly amount of the subsidy will correspond to 19.67% of the gross monthly remuneration . In addition, a proportional application is set for those who have a shorter working day.

The project also clarifies how this subsidy will accrue monthly; particular considerations of its application; contraventions; manner in which the system and the entity in charge will be administered; formalities; worker protection and anti-fraud rules; transparency and information provisions; definition of the enforcement of the law; and the path of fiscal financing.

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and / or sentence structure not be perfect.

MIL Translation OSI