In Chile, legal satisfaction is an obligation of employers with employees, as it is regulated by law under article 47 of the Labour Code. In Chile, for-profit companies of all sizes must distribute a portion of taxable net profit each year (with some adjustments) to employees who have at least one year of service under a prescribed formula or who do not pay these employees a guaranteed annual bonus equal to at least 25% of their basic monthly salary. with a guaranteed annual amount up to a limit of 4.75 times the monthly minimum wage. The Chamber of Deputies has adopted a law that would significantly change the prescribed formula and increase the ceiling of the alternative annual premium. We show you some requirements that state that institutions are legally required to pay bonuses to their employees. First of all, we must clarify that the person responsible for calculating statutory benefits is the employer, since he is responsible for payment when they pay their employees. It is very important to remember that the legal donation is subject to a condition precedent, which stipulates that the donation can only be made if the company makes a profit. Finally, when calculating the legal benefit, companies depend on their type of accounting and tax system, but also on the profits they make, whether or not they are looking for profits, and, above all, on the modality that the employer negotiates with his employee in the contract. The situation is different in the case of deemed income, since enterprises are not required to keep accounts, i.e. neither complete nor simplified, so that they would not be subject to payment of the legal benefit referred to in article 47 of the Labour Code. These are benefits that are reflected in employees` salaries and are based on the profits made by the employer in the current fiscal year.

If your company meets the above requirements, it is obliged to calculate the legal benefits to be paid to each of its employees at least once a year. As already mentioned, the premium may be calculated in accordance with the provisions of article 47 or article 50 of the Labour Code. The benefit is granted when the employer makes liquid profits in his business, so he is obliged to pay his employees an annual bonus. This benefit can be paid in two ways: a payment that cannot be less than the 30% share of the profit, or the employee must receive 25% of the amount earned for the concept of monthly remuneration with a limit of 4.75 monthly minimum income. That is, 25% of the employee`s gross salary is paid. It is also possible for the employer to opt for a different modality, this is the case if 25% of the basic salary exceeds 4.75 times the monthly minimum income. That is, the limit of the tip to be received is 4.75 times the monthly minimum wage, which would be $158,333 (with a minimum wage of 01-08-2022). The bill (initially introduced in 2019) has progressed slowly, but a version of the bill recently approved by the Chamber of Deputies and currently under consideration by the Senate is expected to become law. Of the companies surveyed by WTW, about 73% offer employees some form of guaranteed bonus (30% of discounted net profit of 10% of equity) in accordance with legal requirements.

Employers should monitor the evolution of the legislation and consider how these changes would affect tips as well as alternative premiums. In this context, when we distinguish the types of accounts, we must pay attention to how the legal advantage of the provision of Article 14 D No. 8 the standard, because if we start analyzing the standard, it would fall within the scope of Article 14ter, which was aimed at SMEs with simplified accounting before the tax reform. Some companies choose to pay the fraction monthly, by dividing the total amount by 12, you get the amount that needs to be added to the employee`s salary, including the tip, which is $138,541 as a ceiling per month, regardless of the employee`s salary. On the other hand, companies must pay 25% per month on workers` remuneration with a ceiling of 4.75 monthly minimum income (IMM), as stipulated in Article No. 50 of the Labor Code. Employers or enterprises intending to make a profit (with the exception of cooperatives) are required to pay premiums to their employees in proportion to at least 30% of profits. As you can see, withdrawing bonuses is easy, but it takes a lot of time and even more if the company has a large number of employees. A quick and efficient way to generate the payment and calculation process is to use a remuneration system. The use of technology has streamlined processes, made payments easier and more transparent, and created accurate calculations using a state-of-the-art calculation engine.

If you are looking for one, we can recommend Buk. It is a complete software that has a compensation module and a very complete talent module. It is an easily accessible platform, very intuitive and allows you to access salaries from any device and anywhere. There are two payment systems for statutory benefits: the 30% split or the 25% payment. You can choose one of these payment methods without having to repeat it the following year, unless a specific method is specified in the individual or collective agreement.