United Nations              
Non-contributory Social Protection Programmes Database
Latin America and the Caribbean
Youth Employment Subsidy (Subsidio al Empleo Joven) (2009)



Date: 2009-
Web: Official website of the programme
Description: The Youth Employment Subsidy (SEJ) is oriented to dependents and independent young employees as well as their employers, by improving their salaries and supporting those who hire them. The programme seeks to encourage participation in formal dependent employment of young people between 18 and 25 in the 40% most vulnerable. The programme provides a subsidy up to 30% of the salary (minimum wage) received by the young, 20% goes to the workers and 10% goes to the company. The grant is gradually reduced while the wages of young is increasing. If the monthly salary reaches 440,378 pesos (or annual equivalence) the benefit is finished. Young beneficiaries may choose to receive the allowance in a saving account, checking account or in person; they can also choose to receive a monthly or a single annual paid. Meanwhile, companies receive the subsidy through deposits on a monthly basis, as long as companies are up to date on social security contributions for their workers.


Target population: Young workers, dependent and independent, between 18 and 25 years in the 40% most vulnerable, and receiving wages below 360,000 pesos
Area of intervention: Indirect job creation
Geographic scale: National
Targeting method: 1) Categorical (Young workers between 18 and 25 years) and 2) Proxy means test (40% most vulnerable, according to Social Protection Registry)
Registry of recipients: Social Household Registry (Decree 22, 2015)
Exit strategies or criteria: The grant will be paid up to the age of 24 years old, the remuneration does not exceed the legal limit and the employee does not work in a public institution.
Comments: Recipients are entitled to request additional term. The additional period shall begin on the first day of the next month in which the worker reaches 25 years old, and can only be extended when the worker reaches 27 years old.


Legal framework: Law N°20.338, Supreme Decree N° 28, Letter N° 2536, Letter N° 2675
Responsible organization(s): Ministry of Labour and Social Protection
Executing organization(s): National Training and Employment Service (SENCE)
Source of funding: Government of Chili

1) Cash transfer (subsidy)

Recipient(s): Participants
Mode of delivery: Cash or bank deposit
Periodicity of delivery: Monthly or annually
Recipient of the transfer: Direct beneficiary
Comments: Prove lower gross income than $ 440,378 per month (for those seeking monthly payments) or accredit Annual gross income lower than $ 5.284.532.
Description: The Youth Employment Subsidy is a monetary contribution given to improve the salaries of workers between 18 and 25 years old who receive low wages.


Evaluación de Implementación de Programas Subsidio al Empleo Joven y Bono al Trabajo de la Mujer año 2016

Author: ARSChile Spa
Date: 2016
Publication info: ARSChile Redes Sociales
Link: See Webpage
Topic: Evaluation


Evaluación de Impacto del Programa Subsidio al Empleo Joven.

Author: Centro de Microdatos
Date: 2012
Publication info: Santiago de Chile. Departamento de Economía de la Universidad de Chile.
Link: See Webpage
Topic: Impact evaluation




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