Relevant labor updates in Chile from 2026

In order to keep the organization informed regarding the regulatory changes that impact people management and remuneration, below are the main labor updates in Chile starting in January 2026, as well as an important reminder about the reduction in working hours.

What are the job updates in Chile to take into account?

Starting in 2026, the Chilean state will put into effect new changes in labor issues and among some of the most relevant are the following: 

1. Update of the legal minimum wage

As of January 1, 2026, the legal minimum wage in Chile is set at $539,000 monthly.

This new minimum monthly income applies not only to contracts with ordinary days between 40 and 44 hours per week, but also to all work days exceeding 30 hours per week, including part-time work.

Consequently, all workers whose base salary is less than this amount must be automatically adjusted to the new legal minimum. Unlike what happened previously, part-time workdays are no longer calculated proportionally to the minimum wage: currently, any workday between 30 and 42 hours per week You must receive the full minimum monthly income.

This setting is mandatory and must be correctly reflected in both employment contracts and remuneration settlements.

2. Update of the legal bonus cap

Likewise, the maximum limit of the legal bonus has been updated, which is established in $213,354 monthly.

The application of this benefit is determined as follows:

  • When the worker receives taxable remuneration (base salary, commissions, bonuses or other benefits) greater than $853,416, the legal gratification will correspond to the maximum limit of $213,354.
  • In the event that the taxable remuneration is less than $853,416, the legal gratification will be equivalent to 25% of taxable remuneration of the worker.

These criteria must be applied correctly in the calculation and payment of remuneration from January 2026.

3. Reminder: reduction of working hours

Finally, it is recalled that, in accordance with the gradual nature established in current regulations, Starting in April of this year, the maximum ordinary working day will be reduced to 42 hours per week..

This measure is part of the process of progressive reduction of the working day in Chile and must be considered both in operational planning and in the administration of contracts and work shifts.

Author

Rubén Martínez de Marigorta

Country Manager UR Global Chile

LinkedIn

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