Monthly minimum wage in Chile $440
Christian Fernsby ▼ | August 7, 2022
The monthly minimum wage for workers between the ages of 18 and 65 will be 400,000 Chilean pesos ($440) from August 1.Article continues below
In turn, an increase in the Minimum Wage Subsidy for MSMEs will also come into effect.
It should be noted that if cumulative inflation exceeds 7% by December 2022, the minimum wage will increase to 410,000 Chilean pesos (around US$450) from January 2023.
In turn, an increase in the Minimum Wage Subsidy for micro-, small- and medium-sized enterprises (MSMEs) will also come into effect in order to support them while this measure is implemented. This takes into account that 70% of the workers who receive the minimum wage work in MSMEs.
There are currently 215,393 companies in Chile that could potentially benefit from this (a total of 569,546 workers). As of July 29, 2022, the subsidy had been requested by 111,355 companies (331,422 workers), which is 48.6% of the total to be reached.
It is a temporary monthly subsidy (it will be given until April 2023) aimed at micro-, small- and medium-sized enterprises (MSMEs) in order to support them in paying the new minimum wage established in Law 21.456.
This subsidy goes to the company, not the worker. Workers will therefore receive their minimum wage, regardless of the company they work for.
Between May and July 2022, the subsidy was 22,000 Chilean pesos (around US$24.25). It will now increase to 26,000 Chilean pesos (around US$28.65) for the August 2022 to April 2023 period, taking into account its readjustment to the minimum wage. If the annual Consumer Price Index (CPI) increases more than 7%, the minimum wage will be raised to 410,000 Chilean pesos and the subsidy will be readjusted to 32,000 Chilean pesos (around US$35.27) for the January to April 2023 period. ■ What to read next
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