Minimum wage increased

The Chilean government increased the monthly minimum wage by over 5% on Aug 1.

Key Points:

• As of Aug. 1, the monthly minimum wage for full-time employees who are between the ages of 18 and 65 increased from 380,000 CLP to 400,000 CLP.
• If inflation exceeds 7% by December 2022, Chilean authorities plan to increase the minimum wage to 410,000 CLP in January 2023.
• Minimum wage requirements for employment-based residence permits remain unchanged by the Aug. 1 increase.

Additional Information: Authorities estimate that approximately 800,000 full-time workers will benefit from the minimum wage increase.

BAL Analysis: Businesses may see a slight increase in labor costs because of the new minimum wage. Employers should take the new wage minimums into account and adjust their budgets if necessary. BAL will provide updates on salary minimums for foreign workers as information becomes available.

This alert has been provided by the BAL Global Practice group. For additional information, please contact berryapplemanleiden@bal.com.

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