The Chilean government announced on Monday an increase in the national minimum wage and a series of measures to “cushion” inflation, after a meeting between the authorities and representatives of the Central Union of Workers of the South American country (CUT).
Specific, Chilean Finance Minister Mario Marcelannounced that a readjustment of the minimum monthly income will be proposed to Congress, for workers over 18 and under 65, of 50,000 pesos (about 59 dollars).
Thus, The minimum monthly income will be 380,000 pesos (about 450 dollars) as of May 1, while, as of August 1, it will rise to 400,000 pesos (about 472 dollars).
“In the event that the accumulated inflation in 12 months to December 2022 exceeds 7% of the monthly income, it will increase to 410,000 pesos (about 483 dollars) as of January 2023. Along with these readjustments of the minimum income, also in the same proportions and dates the minimum income for workers under 18 and over 65 will be readjusted,” he pointed out and clarified that the single family subsidy and the family allowance will also have this proportion of increase.
In addition, he argued that in the case of micro and small companies, the State will grant them “a transitory compensation” to cushion the real increase in the minimum monthly income.
Meanwhile, Marcel pointed out that an observatory of the value of the food basket to the public will be established with the aim of protecting these products against an inflationary increase.
Meeting with the Unitary Central of Workers
Regarding the meeting with the CUT, the minister highlighted that it is a source of “particular satisfaction” to be able to reach an agreement in his first formal negotiation with the workers and the “materialization of an important part of the agenda” of President Gabriel’s program Boric.
The Minister of Labor and Social Welfare, Jeannette Jara, also participated in the meeting, who thanked the CUT for “the willingness” to seek a good point of agreement for “the more than 800,000 workers” who earn the minimum wage.
For his part, the president of the CUT, David Acuña, said that this is “a great advance” in the protection of workers’ rights.
“We have begun to build a true dialogue, we welcome this instance and we hope to continue advancing, we have a strong voice, we are a counterpart that allows us to move forward,” he concluded.