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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Tense legislative debate in Chile's Chamber of Deputies over the government's megareform amid opposition amendments
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Chilean government pushes megareform timeline despite wave of opposition amendments

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The Chamber of Deputies' Finance Committee began on Tuesday the detailed discussion of President José Antonio Kast's reconstruction and economic reactivation megareform, amid tensions over more than 1,295 amendments filed by the opposition.

Education Minister María Paz Arzola stated there were prior warnings to CAE debtors before collections by the Treasury General of the Republic. The Socialist Party rejected the severity of these measures.

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The Frente Amplio parliamentary group submitted an official request to the Tesorería General de la República following reports of full bank account withdrawals from CAE debtors.

The National Government filed an appeal before the Council of State to reverse the provisional suspension of a $25 trillion transfer from private funds to Colpensiones. The precautionary measure was issued on April 28 against Decree 415 of 2026. The ministries defend the decree's legality within the pension reform framework.

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The finance commission approved the core of president josé antonio kast’s reconstruction megaproject on thursday after 15 hours of debate. The progress leaves divisions in the christian democrats between deputies and senators, while the opposition plans to obstruct the process.

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