Illustration of Chilean deputies introducing a bill to protect CAE debtors' wages from seizures in a congressional setting.
Illustration of Chilean deputies introducing a bill to protect CAE debtors' wages from seizures in a congressional setting.
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Opposition introduces bill to shield wages of CAE debtors from seizures

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Opposition deputies introduced a bill on Monday to prevent the Treasury from seizing funds in bank accounts of CAE debtors. The measure aims to extend wage protection even after deposits are made.

The bill, led by Daniela Serrano of the Communist Party and backed by lawmakers from several parties, amends article 57 of the Labor Code. It seeks to maintain wage protection when funds are transferred to checking or savings accounts. The measure responds to recent seizures carried out by the General Treasury of the Republic. Deputies reported cases of emptied accounts belonging to debtors earning over 3.5 million pesos. Finance Minister Jorge Quiroz confirmed that around 1,500 people with incomes above that threshold have been embargoed and stated that the state will continue collections. Biminister Claudio Alvarado defended the actions as part of standard procedures to recover state guarantees.

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Initial reactions on X highlight support for the opposition bill protecting CAE debtors' wages from seizures, criticism of Treasury embargoes bypassing labor limits, and some defenses of the government's legal right to collect debts under existing rules, with calls for fairer procedures.

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