Chilean Senate advances Universal Daycare project to Chamber of Deputies

The Universal Daycare project has passed its first constitutional stage in the Chilean Senate and will proceed to the Chamber of Deputies. The initiative aims to expand access to childcare benefits for both dependent and independent workers, removing the current requirement that a company must employ 20 or more women to qualify.

While the Senate approved that children under two years old can access the benefit and supported potential co-payments if the Daycare Fund is insufficient, key issues remain unresolved. Specifically, a proposal to fund the initiative through a 0.35% contribution from unemployment insurance failed to reach the necessary quorum. This leaves the financing mechanism as a primary point of contention for the next stage of legislative review.

Additionally, the Minister of Labor, Tomás Rau, noted a reservation of constitutionality regarding the provision that extends the right to the child rather than just the worker. Critics, including Senator Loreto Carvajal, have expressed concerns that using unemployment insurance funds for this purpose is risky, especially during periods of high unemployment, and have called for negotiations that include employer contributions.