Santiago – A new benefit aimed at bolstering the retirement security of Chilean women is now available, providing a financial contribution for each child born alive or adopted. The Bono por Hijo, or Child Bonus, is a state benefit added to a woman’s pension, and applications are free of charge. This initiative seeks to address long-standing concerns about gender disparities in pension payouts and provide greater financial stability in later life. Understanding the eligibility requirements and how the bonus is calculated is crucial for those who may qualify.
The benefit recognizes both biological and adoptive motherhood, a key feature highlighted by ChileAtiende, a government resource for citizen services. According to the organization, the bonus applies equally to both adoptive mothers and biological mothers, acknowledging the financial and emotional investment in raising children regardless of how that family is formed. This inclusive approach is a significant step towards equitable pension support for women in Chile.
Eligibility: Age and Previsional Status
To receive the Bono por Hijo, applicants must be at least 65 years old and meet specific previsional requirements. The rules vary depending on a woman’s affiliation with the pension system. Those affiliated with an Administradora de Fondos de Pensiones (AFP) – a private pension fund administrator – and who began receiving a pension on or after July 1, 2009, are eligible. However, receiving the Aporte Previsional Solidario de Vejez (APSV), a solidarity pension benefit, may affect the bonus amount. If a woman received a state guarantee (Garantía Estatal), the AFP may suspend the APSV.
Women receiving the Pensión Garantizada Universal (PGU), a universal guaranteed pension, are also eligible and will continue to receive the bonus even if they later lose PGU benefits. Crucially, women not affiliated with a formal pension system but receiving both a PGU and a survivor’s pension (Pensión de Sobrevivencia) from an AFP, insurance company, or health institution (IPS) since July 1, 2009, also qualify for the Bono por Hijo.
Residency Requirements and Calculation of the Bonus
Beyond age and previsional status, applicants must demonstrate a significant connection to Chile. The Bono por Hijo requires beneficiaries to have resided in Chile for a total of 20 years, either continuously or intermittently, starting from the age of 20. They must have lived in Chile for at least four years within the five years preceding their application. This residency requirement ensures the benefit reaches those with a long-term commitment to the country.
The amount of the bonus is calculated based on 10% of 18 times the current monthly minimum wage (Ingreso Mínimo Mensual). The specific minimum wage used in the calculation depends on the child’s date of birth. For children born before July 1, 2009, the minimum wage in effect in July 2009 – $165,000 Chilean pesos – is used. For children born after that date, the minimum wage in effect during the month of their birth is applied. As of November 2023, the minimum wage in Chile is $400,000 Chilean pesos, according to the Ministry of Labor and Social Security, meaning the bonus for children born after July 2009 will be higher.
Impact and Accessing Information
The Bono por Hijo represents a significant effort to address the persistent gap in pension benefits between men and women in Chile. Women often face lower lifetime earnings and interrupted work histories due to caregiving responsibilities, resulting in smaller pension pots. This benefit aims to partially offset those disparities and provide a more secure financial future for Chilean mothers. The benefit reinforces the economic security of women as they age and acknowledges both biological and adoptive motherhood, contributing to improved pensions for those who meet the established requirements.
ChileAtiende provides comprehensive information about the Bono por Hijo, including detailed eligibility criteria, application procedures, and frequently asked questions. You can find more information and begin the application process on their website: ChileAtiende – Bono por Hijo. The application process is straightforward and does not require any fees.
The next key date to watch is December 15th, 2023, when the Instituto de Previsión Social (IPS) will begin processing applications for those eligible in November. Further updates and clarifications regarding the Bono por Hijo will be published on the ChileAtiende website and through official government channels.
Do you have questions about the Bono por Hijo or its impact on your retirement? Share your thoughts in the comments below, and please share this article with anyone who might benefit from this information.
