Unemployment Insurance in Chile

Its specific design and features make the Chilean Unemployment Insurance a unique system, with an individual savings component and an insurance component. The individual savings component provides a monetary allowance for private sector workers during periods of unemployment, and is complemented by a component of the system called the "Solidarity Unemployment Fund." This fund includes contributions by both the State and employers, and may be used only when a worker with an open-ended contract is fired due to "company needs" or "force majeur," and in the case of fixed-term workers or workers hired for specific works and services, after their contracts have expired.