It consists of a diploma, a medal, and US$6,000, which are presented at La Chascona house museum in Santiago.
The creation of the Pablo Neruda Award was announced in July 1987 as part of the commemoration of the 83rd anniversary of the poet's birth.
When announcing it, the Pablo Neruda Foundation stipulated that it would be granted annually to a Chilean writer, less than 40 years old, initially endowed with $3,000.
At first, the award was given to an author for works including poetry, creative prose, and theater.
In 2006 the Neruda Foundation published an anthology with the winners, which ranged from Gonzalo Millán, the first in 1987, to Germán Carrasco [es], who received it in 2005.