Over 750,000 workers have received the Employment IFE subsidy: with a notable rise in female recipients
As of February 4, 2022, the December instalment of the Employment IFE (Ingreso Familiar de Emergencia Laboral or emergency family income) will be paid. The scheme tops up the salaries of new employees by 250,000 Chilean pesos (around US$350) for women, young people, disabled people and the over 55s and by 200,000 Chilean pesos (around US$246) for men.
The inclusion of women in the labor market is crucial for the growth of the country. However, the economic crisis brought about by the COVID-19 pandemic has been especially trying for women who, due to factors such as childcare, caring for sick relatives, domestic chores, fear of COVID and supporting children with remote learning, have encountered many obstacles in returning to the job market.
In light of this, the government has intensified its efforts to support formal employment, placing special emphasis on women’s return to the working world through the Employment IFE, a monthly subsidy that is paid directly to those who have recently signed a new job contract.
“As a government, our primary concern is that jobs are being created in the formal sector and the Employment IFE has been our main tool for achieving this. We are aware that throughout the pandemic, women have been one of the most affected social groups. Women’s participation in the job market has gone backwards nearly ten years,” explained Acting Labor and Social Security Minister Pedro Pizarro.
From the inception of the Employment IFE in May 2021 through to December 2021, 753,061 subsidies were granted, of which 742,902 have been paid at least once. In total, the Employment IFE payments amount to a total government investment of 378 billion Chilean pesos (around US$465 million) including payments of the New Employment Subsidy (Subsidio al Nuevo Empleo).
“I would like to add that since the inception of the IFE, in May 2021, 36.2% of all recipients have been women. This figure has continued to rise, and today 51.5%, that is to say over half of the people receiving IFE today are women,” affirmed the minister.
“Today, according to the National Statistics Institute (Instituto Nacional de Estadísticas, INE), we have an unemployment rate of 7.2%, and this figure has been achieved in part through the Employment IFE, which has been an important first step in creating more and better jobs. I now call upon women and those who have recently signed a new job contract to apply for the Employment IFE and take advantage of this benefit, which provides important support for families. The window for applications closes on March 31, 2023,” emphasized the National Director of National Service of Training and Employment (SENCE), Ricardo Ruiz de Viñaspre.
Employment IFE payments:
Men between 24-55: 50% of their gross monthly salary, with a limit of 200,000 Chilean pesos (around US$246) per month.
Women, young people between 18-24, men over the age of 55, people with a certified disability and people in receipt of a disability pension: 60% of their gross monthly salary, with a limit of 250,000 Chilean pesos (around US$350) per month.
Application Requirements:
You must have signed a new job contract (in the same month or at most one month prior to applying). SENCE will verify that no pension or health contributions have been made by the same employer on behalf of the person applying for this benefit during the previous three months.
Your gross taxable monthly salary must be no higher than three times the monthly minimum wage (1,050,000 Chilean pesos).
You must have been unemployed for the entirety of the month prior to signing the new contract. SENCE will verify that no pension or health contributions were made by any employer in the month prior to the start of your new contract.
Apply to the Employment IFE HERE: www.subsidioalempleo.cl (to apply you will need your password for logging on to Chilean government websites - Clave Única). https://claveunica.gob.cl. When you apply, you must attach the job contract.