The Government of Chile, through the Ministry of Labor and Social Welfare and the Ministry of Finance, has reached an agreement with the Workers Central Union (CUT in Spanish) of Chile, the largest trade union organization in the country, to raise the minimum wage to 440,000 Chilean pesos (about 503 euros) next May.

In turn, as reported by the Government on Monday, a new increase of 20,000 pesos (22.87 euros) will be applied in September, which would raise the final figure to 460,000 pesos (525.99 euros), and another increase of 40,000 pesos (45.73) in July 2024, to place the total amount at 500,000 pesos (571.7 euros).

During the negotiations that began last March, the union had demanded that the Government reach the figure of 500,000 pesos already this May, due to the “high” inflation that is taking place in Chile. This goal must be achieved as soon as possible, we cannot wait,” said the president of the union, David Acuña.

This amount, however, was the goal of the cabinet chaired by Gabriel Boric for the year 2026, at the end of his term. Despite their intention of a greater increase, from the Government, they had considered that it was necessary to reach a balance between the demand of the unions and the capacity of small and medium-sized companies to pay wages.

Last January an initial increase of 50,000 pesos (58.2 euros) was carried out, to which another 10,000 pesos (11.39 euros) were added, thus reaching 410,000 pesos (about 477 euros).

From the CUT they have celebrated that the talks to advance the arrival of the 500,000 pesos are advancing, as part of their “commitment” in the search to overcome the poverty line and create social policies that deliver “a good life” to workers.

Source: dpa

(Reference image source: Government, Europa Press / dpa)

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