QUOTE IN CHILE

Advantages:

• The worker will not have the obligation to pay the amount withdrawn into the social security of the country of origin or another, and may freely dispose of the funds.

Disadvantages:

• The withdrawal of funds will be subject to the taxation indicated in article 42 No. 1 of the Income Tax Law, being considered normal remuneration on the date of their return. According to article 74 No. 1 of the same law, the AFP will be obliged to withhold the Second Category Single Tax that affects the withdrawal, according to the scale of rates indicated in article 43 No. 1.
• The funds found in the worker's individual account in the respective AFP are subject to variability (loss or gain) which depends on a combination of economic, financial, regulatory and policy factors that affect the performance of investments and the management of pension funds.

EXEMPTION FROM QUOTE

Advantages:

•  If the employer has a subsidiary in the country where the worker indicated that he is affiliated with social security, he can pay social security contributions in said institution.
• The employer may pay the amounts of pension contributions to the employee's salary settlement, with the latter having the obligation to pay the amounts to the corresponding institution.
• The worker will be able to access coverage for work accidents and occupational diseases indicated in Law 16,744, and unemployment insurance, given that the employer is obliged to pay it.

Disadvantages:

• If the worker does not comply with the requirements set out in Article 1 of Law 18,156, the employer may be subject to monetary sanctions that may be executed by the inspectors of the Labor Directorate.
  The worker has certain restrictions for not contributing to the health system, namely:
  • The medical benefits must be provided in his country of origin, unless he contracts an ISAPRE
  • Medical licenses and work disability benefits. Given that there is no contribution to the health system, you will be able to access medical leave, but not the work disability subsidy. (extending, for example, to the postnatal period)

Non-payment of contributions could generate arguments in favor of the worker in a possible labor dispute.