Chile: Minimum Legal Wage Increase and Its Consequences

In June 2025, Law No. 21,751 came into effect, providing the update of the minimum legal wage, starting January 1st to CLP $539.000 (approximately €500).

This increase must be reflected on January’s salary to all those employees entitled to minimum wage. This year’s change is particularly relevant if we consider that the second workweek reduction is coming into effect on April 26th (from 44 to 42 hours). Therefore, there will be a cost impact for employers, considering these factors.

Moreover, the increase will also impact the statutory profit-sharing bonus for employers using the guaranteed bonus payment modality of 25% of the annual salary with a cap of 4,75 minimum wages.

This change will also affect the contributions that some employers may be required to do under the Labour Inclusion Law, to fulfil the alternative compliance set by law, should the personnel with disabilities’ quota cannot be met.

Lastly, this change also affects litigation proceedings for trials amounting less than 10 minimal legal wages. Such proceedings are meant to be shorter and speedier.