Context and Details of the MMW Increase 

As of January 2025, Chile has implemented an adjustment to its Monthly Minimum Income (MMI), setting it at 510,636 Chilean pesos (approximately 530 USD / 495.3 EUR). This 2.1% increase is based on the variation of the Consumer Price Index (CPI) recorded between July and December 2024, as stipulated by Law 21.578. It is important to note that this figure applies to workers aged 18 to 65. For those outside this age range, the MMW is set at 380,923 pesos (approximately 395 USD / 369.5 EUR). 

Immediate Impact on Labor Costs and Operating Budgets 

This adjustment directly affects labor costs for a wide spectrum of the Chilean workforce. For multinational corporations and investment funds with operations in the country, this change necessitates an immediate review of budget allocations and financial strategies. The increase in the base salary directly impacts the total payroll cost of the company. 

Recent Evolution of the MMI in Chile 

It is relevant to consider the recent evolution of the MMI in Chile: 

  • In January 2023, the MMI rose to 440,000 pesos (approximately 454 USD / 426.8 EUR). 
  • In September 2023, it increased to 460,000 pesos (approximately 475 USD / 446.2 EUR). 
  • In July 2024, it was set at 500,000 pesos (approximately 516 USD / 485 EUR) for workers aged 18 to 65. 

Long-term Strategic Considerations and the Chilean Regulatory Landscape 

President Gabriel Boric is required to present a bill to the National Congress before April 2025, proposing adjustments to family allowances and the family subsidy (SUF), effective from May 1, 2025. This upcoming regulatory change could introduce additional financial implications, requiring careful long-term strategic planning. Understanding the progressive nature of these wage reforms is crucial for developing sustainable investment strategies within the Chilean market. 

Auxadi: Your Strategic Partner for Navigating the Chilean Regulatory Environment 

Auxadi provides comprehensive accounting, tax, payroll, and legal services in over 50 jurisdictions, assisting multinational corporations and investment funds in navigating complex regulatory landscapes. Our expertise ensures regulatory compliance and efficient financial management within Chile. 

Can Auxadi help?

Auxadi can become your ideal partner. We offer a one stop shop value added outsourcing services in the areas of accounting and reporting, tax compliance, payroll management and representation services, among others.

Local Knowledge – International Coverage

Founded in 1979, Auxadi is a family-owned business working for multinational corporations, private equity funds and real estate funds. It’s the leading firm in international accounting, tax compliance and payroll services management connecting Europe and the Americas with the rest of the world, offering services in 50 countries. Its client list includes many of the top 100 PERE companies. Headquartered in Madrid, with offices in US and further 22 international subsidiaries, Auxadi serves 1,500+ SPVs across 50 jurisdictions.

All information contained in this publication is up to date on 2024. This content has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice.No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this content, and, to the extent permitted by law, AUXADI does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.