Losing a job can have a significant economic and emotional impact. In Chile, a system exists to support those who find themselves unemployed: the Unemployment Insurance program administered by the AFC. When accumulated funds in an individual’s unemployment account are insufficient, a complementary option is available – the Solidarity Unemployment Fund (FCS).
The fund is designed for workers who, in addition to lacking sufficient funds in their individual accounts, have experienced job loss under specific circumstances defined by current regulations.
Who Can Access the Solidarity Unemployment Fund?
The FCS is available to individuals who lost their jobs due to company needs, employer bankruptcy, the expiration of a contract term, the completion of a work or service that originated the contract, or due to unforeseen circumstances or force majeure.
These reasons for job loss can trigger benefits, provided the requirements set by the Unemployment Funds Administrator are met.
Requirements for Applying for the FCS
To access the Solidarity Unemployment Fund, an individual must be unemployed and have insufficient resources in their individual unemployment account. The termination of the contract must be due to reasons such as the expiration of the term, force majeure, or unforeseen circumstances.
In terms of contributions, a minimum of 10 payments to the Solidarity Unemployment Fund is required during the 24 months prior to dismissal. In special cases – such as areas declared in a State of Constitutional Exception of Catastrophe, affected by natural disasters or complex health alerts – the requirement is reduced to 8 contributions, regardless of the type of contract.
Another mandatory step is to activate an account on the National Employment Exchange and accept job offers and participate in any offered training opportunities.
Officials at ChileAtiende remind applicants that “your last three contributions must be continuous, from the same employer, and are counted from your affiliation or from the last insurance payment, up to the month before the contract ends.”
Who is Excluded from this Benefit?
Not everyone is eligible for the Solidarity Unemployment Fund. Those excluded from the benefit include public employees, members of the Armed Forces and law enforcement, independent workers, those under 18 years of age, pensioners – except for partial disability – and those undertaking internships.
These exclusions are defined by law and are not subject to exceptions within the current unemployment protection system.
