A law was passed in Chile to reduce working time from 45 to 40 hours per week, which will be implemented progressively over the next five years. Chile thus coordinates the step with Ecuador and Venezuela, the only other countries in Latin America where the working hours on a weekly basis are 40. In contrast, it is 48 hours in Argentina, Bolivia, Costa Rica, Mexico, Nicaragua, in Panama, Paraguay, Peru and 44 in Brazil.
According to the Organization for Economic Co-operation and Development (OECD), Latin America is one of the regions of the world where the working time on an annual basis is among the highest and the informal sector of the economy from the largest.
In Chile 27.3% of workers are employed in the so-called informal economy, or gray economy, in other words employment is not declared and no tax contributions are paid.
In five years the implementation of the law
Left-wing president Gabriel Boric expressed his satisfaction on Twitter that he can “celebrate” the promotion of the “pro-family plan that aims for better living conditions for all”. According to him, “improvements like the 40 hours are absolutely necessary to get closer to a new Chile, more just, and a more complete life.”
The draft law, which had already been approved by the Senate, was overwhelmingly approved yesterday by the House (127 votes in favor, 14 against, 3 abstentions).
The new law, which only remains to be signed by President Boric to come into force, will be implemented progressively: in one year, the working week will be reduced to 44 hours, then to 42 in the third year of implementation, and to 40 in five years, with no wage reductions.
Source: News Beast
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