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Chile raises minimum wage

SANTIAGO
2024-07-02 09:15

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SANTIAGO, July 1 (Xinhua) -- Chile's government has raised the country's minimum wage to 500,000 Chilean pesos (about 530 U.S. dollars), effective from Monday, marking the largest minimum wage hike in nearly 30 years.

"As of today, July 1, the minimum wage in Chile is 500,000 pesos, with support for micro, small, and medium-sized businesses," President Gabriel Boric announced on X, adding that the measure seeks to "build a fairer society, with better salaries and reduced inequalities."

During an event in Chile's capital Santiago, the president told local media that the "historic increase" would benefit approximately 800,000 workers.

Boric recalled when he took office in 2022, the minimum wage was 350,000 pesos, saying "in a little more than two years, we have achieved a historic increase of 150,000 pesos."

A bill proposing an increase in the minimum wage was sent to Congress in April 2023, following an agreement between the executive branch, the Workers' United Center, and business organizations.

Income poverty in Chile stands at 6.5 percent, indicating that 1,292,521 people live with income levels insufficient to meet their basic needs, according to the 2023 National Socioeconomic Characterization Survey.
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