Chile: Lawmakers Urge Piñera To Modify His Minimum Wage Bill

Last week, Chile's Lower Chamber agreed to discuss the minimum wage adjustment bill while urging President Sebastian Piñera to readjust his 3.2 percent increase proposal.

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Piñera intends to slightly raise the minimum wage from US$451 to US$467, justifying that there will also be an increase in a subsidy from US$55 to US$69. 

Previously, the Labor Commission discarded the Executive's proposal noting that the minimum wage increase should reach the poverty line in a staggered manner.

Finance Minister Rodrigo Cerda explained that the proposal responds to the fact that many small and medium-sized companies cannot pay a much higher amount, so the Government opted to raise the complementary state subsidy.

The Piñera initiative falls way far from the demands voiced by the Workers' Central Union (CUT) and other organizations, which request a US$692 minimum income. 

"It is a stingy and insufficient proposal if we consider Chile's health, economic and social crisis, and the cost of living levels affecting the middle class and vulnerable sectors," lawmaker Raul Soto said. 

Senate's Labor and Treasury Commissions must discuss the bill before sending it back to the Lower Chamber for comments.