Project to increase the minimum wage in Chile advances | News

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The Economic Commission of the Chilean Chamber of Deputies will debate on Tuesday the project that supports a gradual increase in the minimum wage until it reaches 500,000 pesos (627 dollars) by July 2024, local media reported.


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The initiative was approved almost unanimously in the Labor Commission without votes against, but with the abstentions of the parliamentarians representing the opposition parties Independent Democratic Union and National Renewal.

The Government and the Central Unitaria de Trabajadores, the main trade union organization in the country, agreed last April to increase the salary from the current 410,000 pesos (514 dollars) to 460,000 in September (578) and half a million pesos next year.

However, the initiative remained stagnant in the legislative body after a demand from the opposition that demanded from the Executive more mechanisms to help small and medium-sized companies (SMEs).

Among the modifications introduced by the Government, there is an extension of the subsidy given to SMEs according to the number of workers and the size of the firm, which will be maintained until April 2025 and will represent a fiscal effort of 311 billion pesos (388 millions of dollars).

If this initiative is approved in Parliament, it would be the second increase in the minimum wage implemented during the current administration of President Gabriel Boric, who took office in March 2022.

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