The rise of minimum wage in Chile it has been approved and will benefit a specific group of workers. The bill, which establishes an increase of $500,000, has been dispatched in the Chamber of Deputies and is waiting to be promulgated by the Executive and subsequently published in the Official Gazette.
It is important to note that the increase in the minimum wage in Chili it will only affect those workers who currently receive the minimum income. Those employees who already receive higher salaries will not experience an increase in their remuneration. In addition to the minimum wage, this increase will also impact the amount of some state bonuses, such as the Guaranteed Minimum Income (IMG), the Family and Maternal Allowance, the Family Subsidy and the Grace Pension.
The increase of minimum wage It will be done gradually. Initially, the minimum wage will rise from $410,000 to $440,000 retroactively from May of this year. Then, it will increase to $460,000 on September 1, 2023. Finally, the minimum wage will reach $500,000 on July 1, 2024.
In the event that the Consumer Price Index accumulated during the year 2023 in Chili exceeds 6%, an additional increase of $10,000 will take place on January 1, 2024, raising the minimum wage to $470,000 on that date.
In addition, the initiative contemplates an automatic readjustment of the minimum wage on January 1, 2025, according to the CPI percentage between the months of July and December 2024. This increase in minimum wage seeks to improve the working conditions of workers with lower incomes.