The amount of the Child Bonus will experience a significant increase in the coming days due to the increase in the minimum wage. Find out here how this benefit is paid and how much the new contribution will be.
The Child Bonus is an important benefit that is provided for each son or daughter and its objective is to improve women’s pensions from 65 years of age and that, in addition, they meet other requirements.
This is why the Social Security Institute (IPS) announced recently the increase in economic contributiondue to the increase in the Minimum Monthly Income.
It is worth mentioning that the Child Bonus is not paid at the time of birth, but is done through another system. How is the money paid and how much will the new amount be? In CHV News We tell you the details.
It is not in cash: How is the Child Bonus paid?
For mothers affiliated with the AFP System, the amount of the bonus It is not delivered in cash directly to the beneficiary, but is a contribution that is added to the balance of the mother’s capitalization account to increase her current or future pension.
The mothers not affiliated with any regime provisional They are also entitled to the bonusas long as they receive a survivor’s pension (from the old system or DL 3,500), in addition to the PGU, or only the latter.
However, in both cases, The total amount is paid as a monthly flow in installmentswhose distribution is similar to the calculation of a simple annuity, and is translates into an additional contribution that is added to the PGU that the mother receives.
When will the new amount of the Child Bonus be paid?
The amount of the Child Bonus is the result of a calculation established by law and this It is equivalent to 10% of 18 minimum monthly income (the current Minimum Monthly Income value is $460,000, but this will increase to $500,000).
Therefore, The amount of the Child Bonus will reach $900,000 thousand for each child as of July 1, depending on the different factors involved in its calculation, such as the month of birth of the child, profitability of Fund C of the pension system, among others.
This is how the Child Bonus benefit is calculated:
- If the son or daughter was born before July 1, 2009, the minimum income in effect in July 2009 will apply, that is $165,000.
- If you were born after July 1, 2009, the minimum income will correspond to the amount that was in effect during the month of your birth.
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