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      The Chilean government has enacted a new law (Law No. 21830, published June 18, 2026) that increases the statutory minimum salary and updates related family and maternity allowances and the family subsidy.1 As the minimum salary is also a key reference for statutory profit‑sharing (gratificación legal), the change indirectly increases the maximum legal profit‑sharing amounts as well. The measure seeks to protect the purchasing power of lower-income workers and their families and to maintain the real value of social benefits in the face of inflation.

      Several of these changes may directly affect employees’ net pay, assignment cost projections, employer payroll processes, and statutory profit‑sharing obligations in Chile. The main aspects of the new law are summarized below.

      WHY THIS MATTERS

      The new law raises the minimum salary and links future adjustments to inflation, while also updating the thresholds and amounts of family and maternity allowances and the family subsidy. Because the minimum salary is used as a legal reference for statutory profit-sharing, the cap on the guaranteed “gratificación” also increases.

      This may:

      • Increase labor costs for employers with workers earning at or near the minimum salary in Chile.
      • Increase the maximum statutory profit-sharing (gratificación legal) obligations for employers that use the guaranteed system based on the minimum salary.
      • Affect cost-of-living, tax equalization, and compensation calculations for assignees whose packages refer to local statutory minimums or include assumptions on statutory profit-sharing.
      • Require updates to payroll systems, HR policies, mobility cost projections, and the calculation of profit sharing/bonus schemes that reference the minimum salary.

      Minimum Salary Adjustments

      From May 1, 2026

      The law sets new minimum monthly salary amounts as follows:

      • Workers over 18 and up to 65 years of age: Minimum monthly salary – CLP 553,553
      • Workers under 18 and over 65 years of age: Minimum monthly salary – CLP 412,938
      • Minimum for non-remunerational purposes (used as a legal reference in various regulations, not as a salary): Minimum amount – CLP 356,815

      These new values apply from May 1, 2026, and are expected to be reflected in employment contracts and payroll where applicable.

      New reference for statutory profit‑sharing (gratificación legal): Under the guaranteed profit‑sharing system in Article 50 of the Chilean Labor Code (25 percent of annual remuneration, capped at 4.75 monthly minimum salaries), the new annual cap becomes approximately CLP 2,629,377, which is equivalent to a maximum guaranteed profit‑sharing of about CLP 219,115 per month. The actual amount payable will depend on the specific profit‑sharing/bonus system agreed in each company.

      Automatic adjustment from January 1, 2027

      Starting January 1, 2027, the minimum salary will be automatically adjusted based on inflation:

      • The minimum monthly salary for workers over 18 and up to 65 years will be increased according to the accumulated variation of the Consumer Price Index (CPI), as determined by the National Statistics Institute, for the period between May 1, 2026, and December 31, 2026.
      • The minimum salary for workers under 18 and over 65 and the minimum for non-remunerational purposes will be increased in the same proportion as the general minimum salary.
      • The income brackets for accessing family and maternity allowances and the family subsidy will also be adjusted proportionally.

      A supreme decree issued by the Ministry of Finance, also signed by the Minister of Labor and Social Welfare, is expected to be published by January 15, 2027, to formalize the new updated amounts.

      Adjustments to family and maternity allowances and the family subsidy

      The law modifies several thresholds and benefit amounts in existing legislation governing:

      • family allowance (asignación familiar);
      • maternity allowance (asignación maternal); and
      • family subsidy (subsidio familiar).

      These changes are intended to:

      • reflect the new minimum salary levels;
      • maintain the real value of these benefits; and
      • adjust eligibility thresholds so that beneficiaries are not excluded solely because of nominal salary increases.

      From January 1, 2027, these benefits will be automatically increased in the same proportion as the minimum salary adjustment described above.

      KPMG INSIGHTS

      In light of the changes, employers in Chile might wish to consider:

      • Identify whether any employees, including assignees on local terms, are below the new minimum salary and whether compensation adjustments may be needed from May 1, 2026.
      • Review whether they use the guaranteed statutory profit-sharing system under Article 50 of the Labor Code and whether the revised minimum salary changes their annual and monthly exposure.
      • Update assignment cost projections and local-hire budgets to reflect the new minimum salary levels, the higher statutory profit-sharing cap, and the CPI-linked adjustment mechanism from January 1, 2027.
      • Evaluate payroll and HR processes in relation to the revised salary thresholds and the updated family and maternity allowance and family subsidy parameters.

      If assignees and/or their programme managers have any questions or concerns about the scope of the update, its application and potential impacts, and appropriate next steps, they should consult with their qualified professional or a member of the GMS team with KPMG in Chile (see the Contacts section).

      ENDNOTE:

      1  Diario Oficial De La Republica De Chile (in Spanish), “Law No. 21.830,” published on June 18, 2026.

      Contacts

      angelo-adasme
      Angelo Adasme

      Partner, Tax - GMS

      KPMG in Chile

      gustavo-maldonado
      Gustavo Maldonado

      Director

      KPMG in Chile

      andres-gomez
      Andrés Gómez

      Senior Manager

      KPMG Chile

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      The information contained in this newsletter was submitted by the KPMG International member firm in Chile.

      GMS Flash Alert is a Global Mobility Services publication of the KPMG LLP Washington National Tax practice. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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