Chile opens applications for new hiring subsidy to boost formal employment

Chile's Ministry of Labor, through the employment agency SENCE, opened applications for the "Subsidio a la contratación" activation labor line, a state‑funded hiring incentive aimed at reducing unemployment in regions with high joblessness.

The program allocates an initial budget of 24.5 billion Chilean pesos to create up to 25,000 new formal jobs nationwide. Employers that hire unemployed workers earning no more than three minimum wages receive a monthly cash bonus for up to four months—up to 50 % of the worker’s wage for men and up to 60 % for women—paid directly to the company. Each firm may claim a maximum of 200 subsidies, with payment schedules varying by the month of approval. The scheme runs until December 2026. "SENCE has successfully administered employment subsidies and is ready to implement this benefit efficiently," said interim SENCE director Rodrigo Valdivia Lefort.