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Chile’s minimum wage will rise to CLP 539,000 per month effective January 1, 2026, completing a multi-year adjustment cycle established by law, the Chilean Congress confirmed in Law No. 21.751.
The increase, a 2% rise from the 2025 rate of CLP 529,000, will benefit approximately one million workers earning the legal minimum, according to reports. Workers under 18 or over 65 will see their minimum wage increase from CLP 394,622 to CLP 402,082. A non-remunerative reference wage will similarly be adjusted to CLP 347,434.
The adjustment is the final stage of a phased increase that began in 2022, with initial adjustments to CLP 380,000 in May and CLP 400,000 in August. Subsequent increases followed in 2023 to CLP 410,000, and then to CLP 440,000 and CLP 460,000 in 2023-2024. The wage reached CLP 500,000 ahead of schedule in July 2024, followed by a rise to CLP 510,000 in January 2025, and finally to the current rate of CLP 539,000.
Alongside the minimum wage increase, adjustments will be made to family and maternity allowances for employees earning less than CLP 1,412,957. The Single Family Subsidy (SUF) will increase from CLP 21,243 to CLP 22,007 per family, with a base amount of CLP 44,014 for people with disabilities. The Family Allowance will also be adjusted based on monthly income, with varying amounts allocated depending on income brackets: up to CLP 620,251 receiving CLP 22,007. between CLP 620,251 and CLP 905,941 receiving CLP 13,505; and above CLP 905,941 receiving CLP 4,267.
The legal gratification cap, or “profit sharing,” will be calculated as (minimum monthly wage x 4.75) / 12, resulting in a novel cap of CLP 213,354 as of January 2026. Employers are urged to update employment contracts, payroll systems, and legal gratification clauses to ensure compliance.
The changes require updates to payroll and tax reporting, specifically affecting taxes reported on Form 29 and necessitating updates to payroll, accounting, and ERP systems. No additional minimum wage increases are currently scheduled for 2026.
