LatinNews Daily - 27 April 2022

In brief: Chile's gov’t announces deal with union over minimum wage

*Chile’s government has finalised an agreement with the country’s largest trade union, Central Unitaria de Trabajadores (CUT) regarding a 14.3% rise in the monthly minimum wage. According to a government press release, the current minimum wage, which currently stands at Cl$350,000 (US$413), would be increased in two stages: firstly to Cl$380,000 on 1 May and then to Cl$400,000 on 1 August. This will rise again to Cl$410,000 in January 2023 if the 12-month inflation rate in December exceeds 7%. The government added that the agreement included the provision of transitional compensation to support small and medium-sized businesses with the planned wage increase. The press release hailed the agreement as “a significant step towards President Gabriel Boric’s campaign pledge commitment to raise minimum wages to Cl$500,000”. However, the government has come under mounting pressure to combat rising costs of living as Chile experiences record levels of inflation, with monthly inflation reaching 1.9% in March, its highest level since 1993, and year-on-year inflation running at 9.4%, its highest since 2008.

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