On July 12, 2021, Law No. 21.360 was published, which readjusts the amount of the Minimum Monthly Income, as well as the family and maternity allowance, the family subsidy and grants extraordinary aids for families in the context of Covid-19. In particular, this law establishes the following:

1. As of May 1, 2021, the Minimum Monthly Income for workers over 18 years of age and up to 65 years of age is raised to $337,000.

2. As of May 1, 2021, the Minimum Monthly Income for workers under 18 years of age and over 65 years of age is increased to $251,394.

3. As of May 1, 2021, the Minimum Monthly Income for non-remunerative purposes is increased to $217,226.

4. Amends Law No. 21,218, which creates a subsidy to reach a guaranteed Minimum Monthly Income, as follows:

– Employers shall apply monthly to the Ministry of Social Development and Family, through the platform provided by the Undersecretariat of Social Services, for the granting of the benefit to all their workers who may be entitled to access it, verifying the respective requirements through the information declared by such employer.

– If the employer has difficulties that prevent him from applying in due time and form, he will have the obligation to inform the unions constituted in the company and its workers in general, about the contents and requirements for application to the minimum guaranteed income, through brochures issued by the authority or information published in visible places in the company, among other means. Compliance with this obligation must be reported electronically to the respective Labor Inspectorate.

– Likewise, to the extent possible in view of the employment conditions, the employer must allow access to the company’s computerized means for the respective application.

– Failure to comply with the obligation to apply and inform the union and the workers indicated in this article shall be sanctioned with fines:

1. From 5 to 10 monthly tax units in the case of micro and small enterprises;
2. From 20 to 40 monthly tax units in the case of medium-sized companies; and
3. From 30 to 60 monthly tax units in the case of large companies.

5. As of January 1, 2022, the Minimum Monthly Income for workers over 18 years of age and up to 65 years of age, may be increased to $345,000 or $350,000 based on the result of the Monthly Economic Activity Indicator (IMACEC).

1. In the event that the growth of the Monthly Economic Activity Indicator (IMACEC) for November 2021 has experienced a variation of less than three percentage points with respect to May 2021, the amount of the minimum income indicated in the heading of this article shall correspond to $345,000.

2. In the event that the growth of the IMACEC corresponding to November 2021 has experienced a variation greater than three or more percentage points with respect to the month of May 2021, the amount of the minimum income indicated in the heading of this article shall correspond to $350,000.

6. As of January 1, 2022, the amount of the Minimum Monthly Income applicable for workers under 18 years of age and over 65 years of age and for non-remuneration purposes will be increased in the same proportion in which the amount of the Minimum Monthly Income for workers over 18 years of age and up to 65 years of age is increased.

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