Chile enacts the largest minimum wage increase in 29 years

RIO DE JANEIRO, BRAZIL – President Gabriel Boric has proposed that this law represents “decent work that guarantees that the workers of our country can have a fair income“.

The Chilean Government enacted this Friday a law that will make possible the increase of the minimum wage in the country, equivalent to CLP 400,000 per month (US$478), which represents the highest figure in the last 29 years.

Said decree establishes an increase in the minimum monthly income of CLP 380,000 as of May 1, 2022, and CLP 400,000 as of August 1, 2022. “And if cumulative inflation exceeds 7% as of December 2022, the minimum wage will increase to CLP 410,000 as of January 2023,” the Executive informed.

Likewise, this regulation registers a compensatory monthly contribution to face the increase in the cost of the Basic Food Basket (CBA), where it is specified that “the contribution of the Basic Protected Basket (CBP) will be adjusted month by month based on the annualized inflation of the basic food basket. Thus, the one to be granted in May will be CLP 7,342 since that was the variation of the food basket between April 2021 and April 2022. The benefit will be extended until April 2023”.

President Gabriel Boric has proposed that this law represents “decent work that guarantees that the workers of our country can have a fair income. And that implies moving towards greater diversification of the economy, that no one is left behind, that SMEs are not left behind”.

Acknowledging that this implementation is the result of the dialogues held with the Central Labor Union (Central Unitaria de Trabajadores), the Chilean President pointed out that “the enactment of the minimum wage increase reflects that with the will of all sectors we can move forward together with the workers, after a historic agreement between all the protagonists that drive our economy”.

Regarding the law, the Confederation of Metalworkers of Industry and Service of Chile remarked that it is a great step towards the recognition of the value of work and concluded that “the task is to advance towards the fulfillment of a salary that exceeds the poverty line. We, the workers, continue to promote changes for a dignified life”.