On May 30, Law 21,578, which increases the Minimum Monthly Income (IMM), was published in the Official Gazette. The law contemplates a schedule of increases with a view to gradually achieving a minimum salary of $500,000 in July 2024.
Schedule of gradual increases to IMM:
| Date | |
| May 1, 2023 | $440,000 (retroactive) |
| September 1, 2023 | $460.000. |
| January 1, 2024 | $470,000 (subject to CPI variation equal to or greater than 6% during 2023). |
| July 1, 2024 | $500.000. |
| January 1, 2025 | Readjustment according to the accumulated CPI variation between July and December 2024. |
MMI and Consumer Price Index (CPI)
The regulation takes into account the effects of inflation on salaries by providing for the application of a readjustment in accordance with the variation of the CPI in January 2025.
Additionally, in the event that during 2023 the CPI presents a cumulative variation of more than 6%, on January 1, 2024 the MMI would be increased by $10,000, thus remaining at $470,000.
Subsidies Mypymes and Cooperatives
Finally, and as part of the government's negotiations with different unions, the law contemplates subsidies per worker for MSMEs and Cooperatives. These involve the delivery of resources depending on the size of the company - which may be increased in the event of "deterioration of macroeconomic conditions" - as well as tax benefits for this type of employers.
This legal alert was prepared by the Bofill Mir Abogados Labor team for general informational purposes only and should not be considered legal advice.
If you have any questions or comments regarding this information, please contact our team:
Pablo Gutiérrez Luis Alberto Cruchaga
