| Date: | 2009- |
| Description: | The Youth Employment Subsidy (SEJ) is an initiative aimed at young dependent workers, their employers and the self-employed, improving their wages and supporting their employers. The programme seeks to encourage the participation in formal dependent employment of people between 18 and 25 years of age belonging to the most vulnerable 40%. It provides a subsidy of up to 30% of the minimum wage, 20% is given to the young worker and 10% to the company. The percentage of the subsidy is progressively reduced as the young person's salary increases, ending when the salary reaches 440,378 pesos per month (or its annual equivalent). Young beneficiaries can choose to receive the subsidy in a demand or current account, or in person through an office service; they can also choose whether to receive the subsidy monthly or in a single annual instalment. Companies, on the other hand, receive the subsidy through monthly deposits in their current account, provided that they are up to date with their workers' social security contributions. |
Characteristics
| Target population: | Young workers, dependent and self-employed, between 18 and 25 years of age, belonging to the most vulnerable 40%, accredit an annual gross income of less than $5,858,599 ($488,217 monthly), and not be a public employee. Employers whose workers qualify. |
| 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 subsidy is granted until the last day of the month in which the worker is 24 years of age, his or her remuneration does not exceed the established legal limit and he or she does not work in a state institution or in a company with a state contribution of more than 50%. |
| Comments: | Recipients shall be entitled to request additional time. The additional period will be counted from the first day of the month following the month in which the worker reaches the age of 25, and can only be extended until the month in which the worker reaches the age of 27. This benefit can be extended in 2 cases: studies or maternity. |
Institutionality
| 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) Transfer of resources to workers with granted benefit (Monetary Transfer - Subsidy)
| Recipient(s): | Young employed or self-employed worker who meets the targeting criteria |
| Mode of transfer: | Depending on the worker's income |
| Mode of delivery: | Bank account deposit or cash withdrawal |
| Periodicity of delivery: | Monthly or annually |
| Recipient of the transfer: | Direct recipient |
| Conditionalities: | In a period of 12 months they have at least one contribution. It is compulsory for the worker to have graduated from secondary education before the age of 21. |
| Amount : | Maximum of 520,765 per year or 32,548 per month. |
2) Transfer to companies with granted benefit (Monetary Transfer - Subsidy)
| Recipient(s): | Young dependent worker who meets the targeting criteria |
| Mode of transfer: | Depending on the worker's income |
| Mode of delivery: | Deposit in bank account or cash withdrawal |
| Recipient of the transfer: | Employers who apply to the programme and have workers with successful applications |
| Conditionalities: | In a period of 12 months they have at least one contribution. It is compulsory for the worker to have graduated from secondary education before the age of 21. |
| Amount : | Maximum of 520,765 per year or 32,548 per month |
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 |
