Observation (CEACR) - adopted 1993, published 80th ILC session (1993)

Sickness Insurance (Agriculture) Convention, 1927 (No. 25) - Chile (Ratification: 1931)

See under Convention No. 24, as follows:

The Committee notes the information supplied by the Government in its report, and the statistical information on compulsory sickness insurance.

Article 7, paragraph 1, of the Convention. In reply to the Committee's previous comments on this provision of the Convention, which requires employers to share in providing the financial resources of the sickness insurance scheme, the Government recalls that the change provided for in Legislative Decree No. 3501 of 1980, whereby insurance contributions are paid by the workers, is merely a change in the manner of payment of the contribution, as the cost is still borne by the employer in view of the fact that the same instrument provides for an increase in the cash remuneration of the worker. In other words, the change does not mean a reduction in the amount of the worker's cash remuneration, as the above Legislative Decree provides for an increase in his cash remuneration. The Government therefore considers that there is no point in specifying who pays the contributions because, when wages are negotiated, the employer always takes account of the worker's gross wage and the worker, the net wage. Consequently, whether the contributions are borne by the worker or the employer, the net wage and the pension of the worker are not affected, neither is the amount borne by the employer. Only a change in the rate of contributions can affect these variables.

The Committee takes note of this information. It is bound, however, to stress that, in order to give full effect to this provision of the Convention, employers must share directly in providing the financial resources of the sickness insurance scheme for employees. The Committee therefore once again expresses the hope that the Government will take the necessary measures to give full effect to this provision of the Convention.