Last week the Chamber of Deputies approved a bill to raise the minimum wage in Chile and sent it to the Senate. Along with this, the government’s initiative should be discussed this week, so that the wages of the workers can be increased from the month of May itself.
How much has the minimum wage increased in May?
As established in the bill, the minimum wage will rise progressively in the coming months, so that by May the minimum wage in Chile will increase to $440,000, provided the Senate approves it.
After that, new wage increases are planned to reach the $500,000 minimum wage in June 2024.
These are the dates and values of the minimum wage increase in Chile
The minimum wage in Chile will increase gradually in the following months:
- Current Minimum Wage: $410,000
- May 1, 2023: $440,000
- September 1, 2023: $460,000
- January 1, 2023: $470,000 (only if annual inflation exceeds 6% for this year 2023)
- July 1, 2024: $500,000
minimum wage vote in the senate
In order to raise the minimum wage in Chile, the Senate must first approve it. In view of this, discussion on the bill has already begun, and this Monday, May 15, the United Treasury and Labor and Social Welfare Commission will continue to process the initiative.
In the Upper House, it will be included as a signal that the first-class tax rate in the SME regime will be 12.5% in 2024, and will not rise to 25% as per rules. This is in addition to the article that maintains the tax at 10% for this year, all aimed at helping small and medium-sized companies.
Similarly, the Bill includes a subsidy for SMEs for each employee which may vary according to the type of company (micro, small or medium) apart from other factors established in the law. The amount also varies every month, but the benefit will be given till April 2025.
It is expected that this week the Senate will send the bill as it is under urgent discussion so that it can come into force from this month of May itself.