Chile moves ahead with universal childcare fund, says it won’t raise labor costs

Chile's Minister of Labor and Social Security, Tomás Rau, defended the government’s proposals for a universal childcare (Sala Cuna) system, emphasizing that the new financing model will not increase labor expenses. The plan creates a Sala Cuna Fund managed by the Instituto de Previsión Social, funded by a 0.35 % employer contribution that will be fully offset by reductions in unemployment‑insurance contributions – about 0.2 % and 0.15 % respectively. Rau said, “No podemos seguir aumentando los costos laborales,” assuring that the net cost to hiring will stay the same.

The rollout will be gradual over four years, starting with children of workers covered by the Labor Code, then extending to dependents of independent and domestic workers, and finally to children of unemployed parents. An initial fiscal contribution and a state guarantee will back the fund if collected resources fall short. Rau added that the latest design “no tendría impacto en los costos laborales.”