Minimum Wage Increase in Chile

On November 7, 2020, Law 21.283 was published in the Official newspaper and it went into force. This law makes changes to the minimum wage.

The article n°1 of this Law, establishes that the minimum wage as of September 1, 2020 has been increased to $ 326.500 for employee older than 18 years and up to 65 years old. On article n°2, the Law establishes that the minimum wage for employees younger than 18 and older than 65 years old, should be increased to $ 243.561.

This change might have a retroactive effect on the legal profit shared paid on September and October as part of the employee´s salary.

The Law also indicates in article n°6, that no later than April 2021, the President should send to the National Congress a law project to propose another adjustment to the minimum wage, which should come in to force starting May 1, 2021.