Executive summary: Law 21,456 on adjustments to the minimum wage, social benefits, and subsidies for companies

On May 26, the aforementioned Law (*see link) was published, introducing changes in the following areas:
  1. As of May 1, 2022, the Minimum Monthly Income (IMM) will be adjusted to $380.00 for workers between the ages of 18 and 65.
  2. From August 1, 2022, the IMM will increase to $400,000 for a similar group.
  3. Consider a possible increase in the IMM to $410,000, starting in January 2023, if the CPI for 2022 exceeds 7%.
  4. The amount of $283,471 is also established as the new IMM for workers under the age of 18 or over the age of 65.
  5. Introduces new amounts for Family Allowance brackets, ranging from $3,025 to $15,597, depending on income level and dependents.
  6. This Law also provides for a "Temporary subsidy for micro, small, and medium-sized enterprises" with the aim of partially covering the increase in the IMM.
  7. Finally, the Law states that a monthly compensatory contribution will be generated based on the increase in the value of the "Basic Food Basket" for the period May 2022 - April 2023, which will benefit those eligible for family allowances.

(*) Link to source: https://www.diariooficial.interior.gob.cl/publicaciones/2022/05/26/43262/01/2134353.pdf)

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