On June 22, 2026, Law No. 21,830 was published in the Official Gazette, increasing the Monthly Minimum Wage (Ingreso Mínimo Mensual) and amending related legislation.
- Effective May 1, 2026, the monthly minimum wage for employees over 18 and under 65 years of age has been increased to CLP 553,553.
The law has retroactive effect, meaning that salaries and statutory profit-sharing payments (gratificación legal) paid during May 2026 pursuant to Article 50 of the Chilean Labor Code must be adjusted to reflect the new minimum wage.
It is important to note that the increase in the Monthly Minimum Wage impacts:
- Increase in the statutory profit-sharing cap. The maximum statutory profit-sharing amount, equivalent to 4.75 monthly minimum wages under Article 50 of the Labor Code, must be recalculated based on the new minimum wage, effective as of May 2026.
- The amount of administrative fines imposed by the Labor Inspectorate, which are calculated based on the applicable monthly minimum wage.
- As of January 1, 2027, the Monthly Minimum Wage for employees over 18 and under 65 years of age will be adjusted in accordance with the cumulative variation of the Consumer Price Index (CPI), as published by the National Statistics Institute (INE), for the period between May 1, 2026, and December 31, 2026.
- Other Minimum Wage Amounts Updated as of May 1, 2026
- Monthly Minimum Wage for employees under 18 years of age and over 65 years of age: CLP 412,938. $412.938.-
- Monthly Minimum Wage for non-remuneration purposes: CLP 356,815. $356.815.-
As of January 1, 2027, these amounts will also be increased by the same percentage applied to the Monthly Minimum Wage for employees over 18 and under 65 years of age.
For further information regarding these developments, please contact Alfred Sherman (asherman@jdf.cl) or Leyla Alul (lalul@jdf.cl).
