On Wednesday, President Sebastián Piñera signed a bill establishing a guaranteed minimum income of CLP$350,000 for all full-time workers.
"We are responding to the demands of the people through action, not just good intentions,” the President stated at the La Moneda Palace, where he was accompanied by Treasury Minister Ignacio Briones, Labor Minister María José Zaldívar, Minister Secretary General of the Presidency Felipe Ward and Social Development Minister Sebastián Sichel.
The subsidy will be paid directly to workers whose salaries are less than CLP$350,000 and who belong to 90% of the most vulnerable households.
In addition to covering full-time workers, the benefit will be extended proportionally to cover employees who work fewer hours.
Thus, anyone whose income is less than CLP$350,000 but higher than the minimum wage of CLP$301,000 will receive a State subsidy that brings their income up to the CLP$350,000 minimum.
The measure will cost approximately CLP$190 billion for the first year.
“This will give the Social Agenda new impetus,” said the President.
The announcement came as part of the New Social Agenda unveiled by the President in October. The plan also includes immediate increases to pensions, new catastrophic health insurance that expands coverage for families, agreements to lower the price of medications, lower rates for electricity and other services, and increased funding for municipalities.