On September 25, 2020, Decree No. 1434 of the Ministry of Finance was published in the Official Gazette, establishing parameters and improving benefits of the unemployment insurance and the employment protection law. As applicable, the decree orders the following:

As of August 1, 2020 and until October 31 of the same year, the average percentage of remuneration corresponding to the fifth line of business charged to the Solidarity Unemployment Fund of Law No. 19.728, applicable to both the Unemployment Insurance and the benefits paid under the Employment Protection Law, is increased to 55%. The higher value of such draft is fixed at $513,038.

It extends, as from August 1, 2020 and until October 31 of the same year, a sixth and seventh draft from the Solidarity Unemployment Fund of the Unemployment Insurance Law, applicable to the benefits paid from such fund under the Employment Protection Law.

As from August 1, 2020 and until October 31 of the same year, the percentage of the average remuneration corresponding to the sixth and seventh drafts charged to the Solidarity Unemployment Fund of Law No. 19,728, applicable to the benefits paid from such fund under the Unemployment Insurance and Employment Protection Law, is increased to 45%. The upper value of such benefits is set at the amount of $419,757 and its lower value at the amount of $225,000.

In case you require additional information on this matter, you may contact Alfred Sherman (asherman@jdf.cl) and/or Felipe Ovalle (fovalle@jdf.cl)