Chile to Boast Highest Minimum Wage in South America Following Congressional Approval
A significant increase in Chile’s minimum wage, impacting nearly 950,000 workers, has been confirmed by recent congressional support and officially published in the Official Gazette. The adjustment, which also includes modifications to social benefits like family subsidies and maternal allowances, signals a major economic shift for the nation and positions Chile as a regional leader in worker compensation.
Phased Implementation of Wage Hikes
The minimum wage increase will be rolled out in two distinct phases. The first, already retroactive to May 1, 2025, raised the minimum wage from $510,636 to $529,000. The second phase is scheduled for Thursday, January 1, 2026, when the minimum wage will further increase to $539,000 for individuals aged 18 to 65.
A Rapid Rise Under President Boric
This latest increase builds upon a trend of substantial wage growth in Chile. When President Gabriel Boric took office in 2022, the minimum salary stood at $350,000. By 2024, it had already climbed to $500,000, demonstrating a clear commitment to improving the economic well-being of Chilean workers.
The Government of Chile announced the finalized increase on social media:
💰 It is already a reality: the new increase in the minimum salary was published in the Official Gazette. From May it rises retroactively to $ 529,000 and in January 2026 it will reach $ 539,000. A concrete advance for thousands of workers in the country. pic.twitter.com/LC3OYCNGwh
- Government of Chile (@gobiernodechile) June 30, 2025
Regional Impact and Economic Outlook
According to the Observatory of the Economic Context of the Diego Portales University, the increase will propel Chile to the forefront of minimum wage standards in South America. “Chile will be the country with the highest minimum wage in South America,” one analyst noted, highlighting the potential for the nation to become a benchmark for labor standards in the region.
The adjustments to family subsidies and maternal allowances are expected to provide additional economic relief to vulnerable households. While the full economic impact remains to be seen, the increase in the minimum wage represents a substantial investment in the financial security of nearly one million Chilean workers and their families.
