Chilean Chamber of Deputies blocks CAE wage protection bill

The Education Commission of the Chilean Chamber of Deputies has declared the ‘Protected Wages’ (Sueldos Protegidos) bill inadmissible in an 8-5 vote. The initiative sought to amend Article 57 of the Labor Code to ensure that wages remain unseizable even after being deposited into bank accounts.

Currently, the General Treasury of the Republic (TGR) has been garnishing accounts of CAE (State-Guaranteed Loan) debtors, arguing that once funds are deposited, they constitute available balances rather than protected wages. The proposed legislation aimed to prevent this by maintaining the legal protection of earnings regardless of their location in a bank account.

The bill was blocked following arguments from Deputy Paz Charpentier (Republicans), who stated the motion could “affect public finances” and thus falls under the exclusive jurisdiction of the President. Opposition lawmakers, including Daniela Serrano and Emilia Schneider, criticized the decision as a political move to avoid debating the fairness of garnishing wages to settle student debts.