Key Points
- Chile will raise its monthly minimum wage to 529,000 Chilean pesos (approximately USD 561) beginning May 2025.
- A second increase to 539,000 pesos (about USD 571) is planned for 2026.
- The government will also introduce additional measures to strengthen union support and labor protections.
Overview
Chile’s government has reached an agreement with workers’ organizations to increase the national minimum wage as part of its broader efforts to improve labor conditions and reduce inequality. Starting in May 2025, the minimum monthly salary will rise to 529,000 Chilean pesos (about USD 561). A second increase is expected in 2026, raising the wage to approximately 539,000 pesos (around USD 571), contingent upon inflation conditions and budget planning.
This wage increase is part of a broader economic and social agenda, which includes initiatives to support trade unions and enhance collective bargaining rights. While the minimum wage is primarily aimed at lower-income workers, the change will also impact businesses that must adjust payroll practices to comply with the updated thresholds.
Employers are advised to review their internal policies and prepare for payroll recalculations in advance of the effective date. Organizations with low-wage employees or part-time staff should ensure their compensation structures align with the new wage standards to avoid compliance risks.
Looking Ahead
Chile’s planned wage increases signal a continued focus on improving labor equity and aligning salaries with living costs. Companies operating in Chile should closely monitor legislative updates and upcoming details on union-related initiatives that may further impact employer obligations. As 2026 approaches, further consultation between the government, labor groups, and employers is expected to shape the implementation of the next phase of changes.
