Minimum Wage in Chile: Rates, Trends & Compliance

What Is the Minimum Wage in Chile

Chile's minimum wage is set annually by the government, with periodic adjustments based on inflation and economic conditions. As of 2025, the monthly minimum wage for a full-time worker is CLP 529,000, which is approximately USD 550 depending on the exchange rate. The minimum wage for minors under 18 and seniors over 65 is CLP 394,622 per month (approximately USD 410).

A further increase to CLP 539,000 per month (approximately USD 571) is scheduled for January 1, 2026, contingent upon inflation conditions and budget planning.

Minimum Wage in Chile Based on Region

Currently, Chile does not have region-specific minimum wage differences; the same national minimum wage applies across all regions.

Average vs Reasonable vs Typical Minimum Wages

Average Minimum Wage: The average minimum wage in Chile is CLP 529,000 per month, which is a statutory amount established by the government.

Reasonable Minimum Wage: A reasonable minimum wage would typically consider the cost of living and economic conditions. Based on the cost of living, a reasonable wage could be around CLP 600,000 or more, especially in metropolitan areas like Santiago, where living expenses are higher.

Typical Minimum Wage: The typical wage aligns closely with the statutory minimum wage, though in certain sectors like retail and hospitality, wages may be slightly higher due to collective bargaining agreements or specific sectoral rules.

How Does Minimum Wage Apply to Different Workers in Chile?

In Chile, minimum wage laws apply equally to full-time, part-time, and other types of workers, although certain conditions may vary slightly depending on employment status.

Full-Time Employee Wages

Full-time employees in Chile are guaranteed the minimum wage of CLP 529,000 per month unless specified otherwise in a collective bargaining agreement or employment contract.

Part-Time Employee Wages

Part-time employees in Chile are entitled to the same hourly minimum wage as full-time workers, but their overall earnings will be proportionally less depending on their working hours. Part-time employees are not discriminated against in terms of wage rates.

Interns and Trainees

Interns and trainees are generally not entitled to the statutory minimum wage in Chile, as internships are often unpaid or offer only a stipend. However, if an internship is part of a formal educational program, it may come with compensation. Companies must ensure that the conditions of internships align with the Labor Code, particularly in regards to labor rights and health insurance.

Expats

Expatriates working in Chile are subject to the same minimum wage laws as local employees. However, their compensation packages may include additional benefits like housing allowances, which are not included in the minimum wage calculations.

Minimum Wage for Top Paying Roles in Chile

 
• Corporate Executives: Salaries for top executives such as CEOs are significantly higher than the minimum wage, typically ranging from CLP 75,000,000 to CLP 207,000,000 per year, depending on the company.
 
• Doctors and Specialists: Medical professionals, particularly specialists, may earn between CLP 2,000,000 and CLP 4,000,000 per month.
 
• Lawyers: Senior lawyers in Chile can earn between CLP 35,000,000 and CLP 52,000,000 annually, with an average salary of approximately CLP 50,400,000 per year plus bonuses averaging CLP 3,400,000.

Factors Influencing Minimum Wage in Chile

The determination of Chile's minimum wage is influenced by multiple factors, including economic conditions, inflation, and government policies.

Industry-Specific Variations

In certain sectors, such as technology and financial services, wages tend to be higher than the minimum wage due to the specialized skills required. Conversely, industries like agriculture may have wages closer to the minimum wage due to lower skill requirements.

Economic Conditions

Economic factors such as inflation, unemployment, and national economic growth play a crucial role in determining minimum wage adjustments. Chile's inflation rate in recent years has influenced the adjustments to the minimum wage to ensure that workers' purchasing power is maintained.

Government Policies and Legislation

The Chilean government reviews and adjusts the minimum wage annually based on economic performance and inflation. This process is done through negotiations with labor unions, business leaders, and other stakeholders.

Tax Implications of Minimum Wage

For employees earning the minimum wage, there are minimal tax obligations due to the lower earnings. However, the employer still has to pay social security contributions, health insurance, and other mandatory payroll taxes.

Minimum Wage History and Trends in Chile

The minimum wage in Chile has been gradually increasing in recent years. Historically, the minimum wage has been adjusted at the start of each year, and predictions suggest that the rate will continue to rise incrementally over the next few years.

As of May 1, 2025, Chile's statutory minimum wage increased to CLP 529,000 per month for workers aged 18 to 65, up from CLP 500,000 in 2024. This adjustment is part of a broader effort to address inflation and cost of living concerns. A further increase to CLP 539,000 is scheduled for January 1, 2026, contingent upon inflation conditions and budget planning.  These measures aim to improve workers' purchasing power and reduce wage inequality, positioning Chile among the leaders in Latin America for minimum wage levels.

How To Stay Compliant When Hiring in Chile With Playroll

Expanding your business internationally is exciting, but it comes with the challenge of understanding complex legal and payroll requirements. One of the hurdles is ensuring you comply with local minimum wage laws. Playroll makes this process easier by acting as your trusted Employer of Record:

 
• Scale Your Global Team: Legally hire and onboard employees in 185+ regions, ensuring full compliance with local labor laws, tax regulations, and statutory benefits.
 
• Pay Your Team Accurately: Your global workforce is always paid on time, and we ensure continuous compliance with local minimum wage and tax laws.
 
• Guaranteed Legal Compliance: Our comprehensive compliance checks and expertly crafted contracts guarantee your agreements meet local legal standards, including minimum wage laws, tax regulations, and benefits. This way, you can focus on growing your business without worrying about compliance risks.