2023-10-25 01:18:59
An important strengthening unemployment insurance approved the Chamber of the Chamber, a proposal that was now ready to be passed to the Executive for its promulgation as a law of the Republic.
The initiative, supported in the third step, sets the goal of turning this tool into an effective, supportive and sustainable mechanism, in particular, taking into account the current economic and social context facing the country.
For its purposes, the project modifies the Ley 19.728, which establishes unemployment insurance. First of all, reduces the requirements for access to Unemployment Funds in case of job loss. In this line, The number of registered contributions that allows access to benefits charged to the individual unemployment account (CIC) is lowered:
– From 12 to 10, in the case of workers with a permanent contract or a private home.
– From 6 to 5, in the case of workers with a fixed-term contract.
Likewise, the number of registered contributions that allows access to benefits charged to the Solidarity Unemployment Fund (FCS) decreases from 12 to 10, in the last 24 months prior to the end of the employment relationship.
On the other hand, unemployment benefits charged to the CIC are increased. To this end, an increase in the replacement rate for the second month of benefits is promoted. It ranges from 55% to 60% of the respective average remuneration.
Then, unemployment benefits are increased from the FCS. This, by increasing the replacement rate for the second month of benefit and updating the lower and upper limits of benefits for workers with an indefinite contract or a private home.
In the case of those who have a fixed-term contract, a fourth and fifth draft are added. In this way, your profit table is left with five monthly spins.
Special cases
In this strengthening of unemployment insurance, a more flexible access requirement is also promoted in the face of special situations. In particular, it points to the loss of employment in an area affected by a catastrophe or in the face of a health alert. This, when it implies the stoppage of activities in all or part of the territory of a region.
Thus, for example, this framework provides for a reduction in the minimum number of registered contributions that allows access to benefits charged to the CIC.
In another line, an asset class is added that contributes to the portfolio in terms of higher return and lower volatility. This allows us to obtain a more efficient portfolio in terms of risk-return.
On the other hand, modifications are proposed that allow a tax charge loan to finance the benefits under the regime. Likewise, for those defined within the framework of states of exception, with the objective of ensuring the sustainability of the FCS.
The loan can be activated as long as the value of the Fund is less than 19 million UTM. Fiscal resources, in no case, may exceed 5 million UTM. And, prior to this procedure, you are obliged to consult an actuarial study that concludes that the FCS is sustainable after the tax charge loan. In any case, the money will have to be repaid within a maximum period of ten years.
Improvements are also generated in employability and labor reintegration, in line with the Productivity Agenda presented by the Executive. In this context, a conceptual change is made to avoid restricting the use of funds for basic preparations and training. Thus, it varies towards a concept that includes labor intermediation more broadly.
Most of the changes made in the Senate were to reflect the idea that this mechanism will also operate in areas affected by disasters. Another point requires incorporating information on the balances of the worker’s individual account due to severance pay when notifying the termination of services. For this, a period of five days is defined after the signing of the respective settlement.
See message, discussion and analysis Bulletin No. 15990-13
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