Monday , May 17 2021

It's already a law: independent workers will have to cite economics

This Thursday, with 95 votes for Congress, the project of incorporating independent workers has become a law will force those working within this modality to contribute to social protection programs.

According to the Government, the above "provides social security." 577 thousand workers".

The law retains the obligation to designate independent workers, as established in the 2008 reform, but they will receive all social security benefits from the first year, unlike the current law.

From the Ministry of Labor – through press releases – they have refined it "Men older than 55 and women older than 50 will be exempt from paying contributions on January 1, 2018.".

Nicolas Monckeberg's Minister of Foreign Affairs said that Chile should not be the first or second class worker. "We want those who are dependent or independent always working to be protected, with social security particularly for the unwanted effects such as illness, job accidents, and even for old age," he said.

Agency UNO
Agency UNO

In his opinion, "what sets this up is." a realistic procedure that does not mainly affect the income of independent workers, but it covers them from the very first day of the most important insurance.

Undersecretary for Social Security María José Zaldivar emphasized the approval of this law, but clarified that in no case will there be a double statement.

The law addresses the shortcomings of current regulations for the inclusion of independent workers – from the public and private sector – into the social security systems, the initiative that was initiated in the 2008 pension reform and whose main goal was to force it to be independent of the retirement offer.

This obligation has begun to be applied gradually from 2012, enabling the offer to be offset in each rental operation. In 2016, mandatory nature had to begin without the possibility of resignation, but was finally postponed until 2018.


The adopted law establishes a a new mechanism of gradual citation for workers who retain the obligation to pay contributions through. t Annual income tax return every year, starting from 2019, is charged with a 10% tax deduction.

Agency UNO
Agency UNO

However, unlike the current regulations, there is a gradual increase in deductible tax at. T 0.75% per annum, by 2026 16%; and the ninth year will increase by 1%, to reach 17% in 2027.

Those who are required to contribute are independent workers who issue a gross annual allowance equal to or above 5 monthly minimum income. ($ 1.3 million a year), excluding men aged 55 and over, and a woman of 50 years or more since January 1, 2018.

It is estimated that they are summed up 577 thousand workers, half of those required under the law in force.

With the amounts that will be held each April will be paid in the new order that leaves retirement at the end:

1. Disability and Survival Insurance (SIS).
2. Social Protection Against Occupational Accidents and Occupational Diseases (ATEP).
3. Child and girl escort insurance (Sanna Law).
4. Hospital leave and subsidies before and after childbirth and parental births.
5. Pensions.

The Ministry of Labor explained this in its statement formula allows independent workers access to financial subsidies (payment of medical permits) granted to these programs, calculated on the 100% tax base, which will account for 80% of the gross income sum obtained by an independent worker in the calendar year prior to the tax return.

Saving for pensionsmeanwhile it will gradually increase and It will be calculated as the difference between retention and payment by various pension systems mentioned social security.

Transitional option

The new law also provides for a transitional alternative for those who from 2019 can not allocate the total tax on the deduction for the payment of contributions for pension insurance.

This consists of the possibility of paying pensions and health insurance for a lower percentage of taxable income, which will increase annually, starting with a contribution of 5% of taxable income in the first year, 17% in the second, and gradually increasing to 100% in the tenth year, counting from the publication of the law.

This will keep the first year for social security payments 2.69%, returning to the worker 7.31%, Each year the bid increases as the rebate increases, and the percentage of the return falls. In this case, for determining the health subsidies and the ATEPs they are entitled to, they will be calculated on the basis of the actual income.

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