{"id":11197,"date":"2019-04-08T17:24:49","date_gmt":"2019-04-08T20:24:49","guid":{"rendered":"https:\/\/vivirenchile.cl\/?p=11197"},"modified":"2019-04-08T17:27:49","modified_gmt":"2019-04-08T20:27:49","slug":"new-contribution-system-self-employed-workers","status":"publish","type":"post","link":"https:\/\/vivirenchile.cl\/en\/new-contribution-system-self-employed-workers\/","title":{"rendered":"New Contribution System for Self-Employed Workers"},"content":{"rendered":"

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As of February 2019, a new law for independent workers is in force, which modifies the norms of compulsory incorporation to the social security for workers who issue professional services invoices, establishing a gradual mechanism for the payment of contributions and access to pension and health benefits. This law has been in force since February 2, 2019, materializing in the<\/strong> Income Tax Declaration process in April of this year<\/strong>.<\/p>\n

Under this new regulation, those workers who issue professional services invoices that meet the following conditions will be obliged to contribute:<\/p>\n

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  1. The total amount of their professional services invoices issued during the calendar year is greater than 5 minimum monthly incomes<\/strong> (amount close to $1,400,000).<\/li>\n
  2. Are under 55 years of age<\/strong>, if male, and under 50 years of age<\/strong>, if female, as of January 1, 2018.<\/li>\n
  3. Are not<\/strong> members of the old pension system.<\/li>\n<\/ol>\n

    In view of the aforementioned, those individuals who do not comply with said requirements, who already contribute for the taxable cap or who are pensioned for old age or total disability will not be obliged to contribute.<\/p>\n

    Self-employed workers will pay their social security contributions in the Income Tax Declaration process, with a charge to the tax withholdings from the fees, granting them the right to annual coverage of the different social security systems. Thus, the obligation will begin in the 2019 Annual Tax Return for 2018 income, covering the period from<\/strong> July 2019 to June 2020<\/strong>.<\/p>\n

    The benefits<\/strong> of incorporation into the social security system for the self-employed are as follows:<\/p>\n

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    1. Disability and Survivorship Insurance<\/strong> (SIS):<\/strong> disability and survivor’s pensions, death quota.<\/li>\n
    2. Occupational Accident and Illness Insurance (ATEP):<\/strong> free medical care, rehabilitation, order of rest (medical leave and disability benefits), indemnities, disability and survivor’s pensions, death allowance.<\/li>\n
    3. Health:<\/strong> medical attention (ambulatory and hospital), medical leave, work incapacity subsidies, prenatal subsidy, parental postnatal.<\/li>\n
    4. SANNA Law:<\/strong> medical leave and subsidies in case of illness of a child.<\/li>\n
    5. Right to family benefits:<\/strong> payment of family and maternity allowances to the beneficiary.<\/li>\n
    6. Old-age pensions:<\/strong> invalidity, survivor’s and mortuary pensions.<\/li>\n<\/ol>\n

      Although the law obliges workers who issue professional services invoices to contribute, it establishes two contribution options with different coverage and advantages:<\/p>\n