Chile Senate approves $553.55 minimum wage increase

Chile's Senate voted to turn the bill raising the minimum wage into law, setting the new level at 553,553 Chilean pesos per month. The increase of 14,553 pesos (about 2.7%) applies retroactively from 1 May 2026 for workers aged 18 to 65, while a lower rate of 412,938 pesos is set for those under 18 or over 65.

Labor Minister Tomás Rau said, “Quiero destacar el apoyo. El salario mínimo se va a pagar retroactivo desde el 1 de mayo y el monto alcanza los $553 553.” The law also mandates an automatic adjustment on 1 January 2027 based on inflation measured between May and December 2026, and a new wage‑adjustment proposal must be submitted by June 2027. The vote followed a debate over the split between the general minimum wage and the reduced rates for younger and older workers.

The adjustment aims to protect workers’ purchasing power amid a 9.1% unemployment rate and the loss of roughly 40,000 formal jobs in the last quarter, according to the government. Finance Minister Jorge Quiroz highlighted the need to balance wage growth with macro‑economic stability.