Home » Business » Users Commission in talks with Minister Jeannette Jara to revamp Unemployment Insurance program

Users Commission in talks with Minister Jeannette Jara to revamp Unemployment Insurance program

March 20, 2023

  • Accompanied by the Undersecretary for Social Welfare, Christian Larraín, and the Superintendent of Pensions, Osvaldo Macías, the Secretary of State reported that in the coming days the Government will introduce a bill to, among other objectives, adapt access to this protection instrument social to the current labor context.

The Minister of Labor and Social Welfare, Jeannette Jara, presented this Monday to the Unemployment Insurance Users’ Commission proposals to modify this social protection instrument. Accompanied by the Undersecretary of Social Welfare, Christian Larraín, and the Superintendent of Pensions, Osvaldo Macías, the Secretary of State indicated that these changes to the Unemployment Insurance will be made through a bill that the Government will submit to the National Congress in the next days.

The proposals include adapting the requirements for access to Unemployment Insurance benefits to the current employment context; increase the number of benefits; temporarily increase the replacement rates of benefits charged to the Individual Unemployment Account (CIC); temporarily increase the replacement rates and the minimum and maximum values ​​of the benefits charged to the Solidarity Unemployment Fund (FCS).

“As a Government, we have presented to the Commission of Unemployment Insurance Users different alternatives to facilitate access, for people who are unemployed, to this social security instrument, increasing replacement rates, the minimum and maximum amounts, and reducing requirements so that they can count on coverage that supports them when they face unemployment and lack of income,” said Minister Jara.

Unemployment Insurance Users Commission

The Unemployment Insurance Users Commission is an entity regulated by Law 19,728, on Mandatory Unemployment Insurance, and Supreme Decree 49, of October 29, 2001, of the Ministry of Labor and Social Welfare.

Its function is to know the criteria and procedures used by the Unemployment Fund Administrator (AFC) to manage the Unemployment Funds and the payment of the benefits to which it is obliged.

Its faculties, among others, are to know and be informed by the AFC of the procedures to ensure the timely and appropriate payment of Unemployment Insurance benefits; know and be informed by the AFC of the criteria used to comply with the policies and instructions on information to contributors regarding profitability and commissions, determined by the Superintendence of Pensions; know and be informed by the managing entity of the National Employment Exchange about the operation of the aforementioned Exchange.

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