Observation (CEACR) - adopted 2001, published 90th ILC session (2002)

Sickness Insurance (Industry) Convention, 1927 (No. 24) - Chile (Ratification: 1931)

In reply to the Committee’s previous comments, the Government indicates that the obligation to subscribe to the social security scheme is not of a contractual nature - it does not stem from the wish of the parties - but is based in law. Since the adoption of Legislative Decree No. 3501 of 1980, all social insurance payments, except those of the occupational injury compensation scheme, are paid by the worker. Previously, a large percentage of these contributions was paid by the employer and/or the State. Gross salaries have been increased in order to compensate for the worker’s obligation to pay contributions in their entirety. The Government therefore considers that by increasing wages the employers are continuing to finance contributions and the worker’s level of income is thus not affected.

The Committee notes this information. It notes with regret that the situation remains unchanged. The Committee has already indicated that the salary increase to which the Government refers could not be considered as giving effect to Article 7, paragraph 1, of the Convention which stipulates that employers shall share directly in providing the financial resources of the sickness insurance system. The Committee hopes that the Government will be able to re-examine this question and asks it to communicate in its next report information on any progress made in this regard.