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Chile - Minimum Wages - 2011


LAST UPDATE

27 September 2011
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SOURCES


Name of Act

Law No.18600 issuing the standards for mental deficiency workers (Ley 28600 por la que se establecen normas sobre deficientes mentales) of 19 February 1987, as amended up to 17 March 2008.

Name of Act

Act No. 20.524 readjusting the amount of Minimum Wages (Ley N° 20.254 por el que se reajusta el monto del ingreso mínimo mensual),of 13 July 2011

Name of Act

Decree Law No. 1 that issues the consolidated version of the Labour Code (DFL N°1 Fija el texto refundido, coordinado y sistematizado del codigo del Trabajo), of 31 July 2002, as amended up to Law No. 20,510 of 28 April 2011.
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Other source used

Human Rights Report 2011 Chile, of the U.S. Department of State

LEGAL DEFINITIONS


Employee/worker

Shall mean any natural person who performs intellectual or material services under the subordination and dependence of an employer according to a labour contract.
Labour Code Art.3

Employer

Shall mean the natural person or legal entity using the intellectual or material services of one or more person(s) according to a labour contract.
Labour Code Art.3

Wage

Remuneration means the compensation in cash and the additional compensations in kind that a worker shall receive from an employer according to a labour contract.
Labour Code Art.41

Minimum wage

The minimum wage is the lowest monthly amount that a worker may receive for his work. In case of part time work, the wages shall not be proportionally lower than the minimum wages.
Labour Code Art.42, 44

MINIMUM WAGE FIXING


Procedure


Government decides alone

The national minimum wage is set by law and at its own initiative and no tripartite institutional mechanism of negotiation in this issue exists. However, in practice a committee composed of Government, employer, and labour representatives normally suggests a minimum wage rate based on project inflation and increases in productivity.
Act No.20524
Human Rights Report

Minimum wage set through decentralized collective bargaining

Wages can be fixed by collective agreement in a rate not lower than the national minimum wage rates.
Labour Code Art.306

Criteria

The legislation does not provide the criteria taken into account of the Government when setting the minimum wage rates.

Productivity

The Government takes into account the increases in productivity of the country when setting the minimum wage rates.
Human Rights Report

Inflation rate

The Government takes into account the inflation of the country when setting the minimum wage rates.
Human Rights Report

Coverage


Scope

The national minimum wage rates apply to all categories of workers according to the following:
a. A minimum wage rate applicable to workers over 18 and under 65 years old.
b. A minimum wage rate applicable to workers under 18 and over 65 years old.
c. A minimum wage rate applicable to workers performing work under no remunerative purposes.
Act No.20524 Art.1

Excluded categories


» Workers

Remuneration for apprentices is freely agreed by the parties, and may be fixed in an amount under the minimum wage rate.

In a contract of employment with a person with a mental deficiency, the parties can freely negotiate the wage without applying the legislation on minimum wages.
Labour Code Art.81
Law No.18600 Art.16

Specific minimum wage rates


» Specific minimum wage by occupation

No

» Specific minimum wage by sector

No

» Specific minimum wage by region

No

» Minimum wage levels for specific categories of workers


» Domestic Workers

The remuneration for domestic workers shall be agreed between the parties and shall comprise in addition to the payments in cash, the provision of food and accomodation when the worker live in the household.

The remuneration in cash of domestic workers shall not be lower than the minimum wage rate for other categories of workers.
Labour Code Art.151, 44

» Youth

There is a specific minimum wage rate for workers under 18 years old, which is lower than the general mininum wage rate.
Act No.20524 Art.1

» Other categories

There is a specific minimum wage rate for workers older than 65 years old, which is lower than the general mininum wage rate.
Act No.20524 Art.1

Level


Minimum wage level(s) in national currency

The minimum wage for workers between 18 and 65 years old is fixed in $182.000 pesos per month as from July 1st, 2011.

The minimum wage for workers under 18 and over 65 years old is fixed in $135.867 pesos per month, and for workers working for non remunerative purposes in $117.401 pesos per month, as from July 1st, 2011.
Act No.20524 Art.1

Last minimum wage update

1 July 2011
Act No.20524 Art.1

In-kind allowances

Wages shall be paid in legal currency, independently of the specifications in the legislation for agricultural workers and domestic workers.

In kind allowances are permitted but only as an increase of the remuneration in cash.
Labour Code Art.41,54,151

Rate of payment


» Hourly

The rate of payment may be fixed by time unit.
Labour Code Art.44

» Daily

The rate of payment may be fixed per day.
Labour Code Art.44

» Weekly

The rate of payment may be fixed per week.
Labour Code Art.44

» Monthly

The rate of payment may be fixed per month.
Labour Code Art. 44
Act No.20524 Art.1

» Other

The rate of payment may be fixed per fortnight or per piece.
Labour Code Art.44

Specific provisions

In no circumstances the rate of payment may exceed one month.
Labour Code Art.44

Scheduled frequency of adjustment

The legislation does not provide the periodicity of adjustment of the Minimum Wage. However in practice it is readjusted once each year.
Human Rights Report

Enforcement mechanisms


Labour inspection

The labour inspector may impose fines for the infringement of the labour standards.
Labour Code Art.191

Results generated on: 30th August 2014 at 14:14:08.
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