Chile’s minimum wage is set for significant increases, impacting nearly one million workers, following Congressional approval of a goverment-backed initiative. The legislation, stemming from an agreement with the Unitary Central of Workers (CUT), establishes a two-stage adjustment designed to bolster the income of the country’s lowest earners and support businesses during the transition.
This marks a significant step toward improving the quality of life for Chilean families, particularly as the minimum wage has seen considerable growth in recent years.The approved measure builds on previous increases, from $350,000 in 2022 to $500,000 in 2024 and $510,636 this year, and aims to consolidate a new salary floor.
Effective May 1, 2025, the minimum monthly income will rise to $529,000 for workers aged 18 to 65. A further increase will take effect on January 1,2026,bringing the minimum wage to $539,000. These adjustments will directly benefit approximately 950,000 workers nationwide.
Beyond the base wage increase, the project includes adjustments to family subsidies and maternal allocations. Recognizing the potential impact on smaller businesses, the legislation also incorporates specific support measures for Micro, small and medium enterprises (MSMEs) to ease implementation.
