Bill extends the regional employment bonus and makes contributions more flexible

The Ministry of Labor and Social Security extended the validity of the hiring bonus in regions with high unemployment until March 31, 2027, and relaxed one of its central requirements: from now on, it will be sufficient for the worker to have no recorded social security contributions in the month immediately preceding the start of the employment relationship, instead of the three months required until now. The measure was formalized through Decree No. 95, issued on September 25, 2026, and published in the Official Gazette No. 44,588 on Monday, November 2, 2026 (CVE 2895879).

The regulation modifies Decree No. 28 of 2011, from the same ministry, which establishes the components, lines of action, and procedures of the On-the-Job Training Program. The bonus had been created by Decree No. 77 of 2026, which incorporated the “Labor Activation Line for Regions with High Levels of Unemployment” into the program, with the approval (toma de razón) of the Comptroller General of the Republic on August 25, 2026.

The official argument: high demand and unmet requirement

In its considerations, Decree No. 95 maintains that the high unemployment situation persists, that there is a high demand to access the benefit, and that the requirement of not recording contributions in the three previous months “is not met by a high number of applicants,” despite there being resources available to finance the programmatic line.

The macroeconomic framework supporting the decision comes from the National Employment Survey of the National Institute of Statistics (INE):

• National unemployment rose from 9.4% in the April-June 2026 rolling quarter to 9.5% in May-July 2026.
• That 9.5% is the highest record since the April-June 2021 rolling quarter.
• 43 consecutive months were completed with unemployment rates above 8%.

Extended validity and contribution requirement

The decree adds a sentence to the sixth paragraph of letter b-ter) of the third article of Decree No. 28, so that the line remains in effect until March 31, 2027, “provided that the Public Sector Budget Law of that year provides resources for this purpose.” The bonuses may be accrued until that date or until the budget assigned to this activation line is exhausted, whichever occurs first.

In parallel, it replaces numeral 1 of the eighth paragraph, regarding cumulative granting requirements, with the single-month formula. The National Training and Employment Service (Sence) is authorized, for reasons of efficient service, to carry out the administrative steps to implement the modification without waiting for the full processing of the decree, although it may only make disbursements charged to the modifications once the act has been processed and through the acts that order the transfer.

Amounts, quotas, and benefit limits

The operating conditions of the line were established by exempt resolution No. 1,217, dated August 27, 2026, from the Undersecretariat of Labor, which qualified the high level of unemployment in all regions of the country. Among its definitions:

• Monthly bonus of 50% of a minimum monthly income for each new hiring of male workers and 60% for each new hiring of female workers.
• Financing for a maximum of 25,000 slots, for a term of up to 4 months.
• Original validity of the line until December 31, 2026, now extended by decree No. 95.
• Cap of 200 bonuses per company throughout the entire duration of the benefit, according to decree No. 77.

The resolution also provides the regional unemployment map for the rolling quarter of March-May 2026, with rates exceeding 8% in twelve regions: Arica and Parinacota (8.4%), Tarapacá (9.0%), Atacama (8.3%), Coquimbo (9.1%), Valparaíso (10.2%), Metropolitana (9.8%), O’Higgins (10.2%), Maule (10.0%), Ñuble (10.1%), Biobío (9.8%), La Araucanía (8.7%) and Los Ríos (9.7%). In Antofagasta, Los Lagos, Aysén and Magallanes and Chilean Antarctica, the condition was met due to youth unemployment equal to or greater than 10%.

Impact for companies and unemployed persons

The adjustment expands the eligible population in a labor market that has accumulated more than three years with unemployment above 8%. For companies in the qualified regions, the hiring requirement becomes easier to prove as the contribution review window is reduced; for the unemployed, the change aims to incorporate those who had a recent employment relationship and were excluded by the three-month term. The benefit applies nationwide, according to the qualification of the Undersecretariat of Labor, and its continuity beyond March 2027 remains tied to the resources provided in the Budget Law.

Source: Official Gazette of the Republic of Chile, No. 44,588, Monday, November 2, 2026, Section I, page 1 (official reference: CVE 2895879).