Law 20,763 (published in the Official Gazette on July 18 2014) adjusted the minimum wage and family allowance values for the years 2014 to 2016.
As of January 1 2016 the minimum wage values are as follows:
- general – Ps250,000;
- employees over 65 years of age and under 18 – Ps186,631; and
- for non-remuneration purposes – Ps161,265.(1)
As of January 1 2016 the family allowance values(2) are as follows:
- Ps10,269 per beneficiary for employees whose monthly income does not exceed Ps262,326;
- Ps6,302 per beneficiary for employees whose monthly income is more than Ps262,326, but does not exceed Ps383,156; and
- Ps1,992 per beneficiary for employees whose monthly income is more than Ps383,156, but does not exceed Ps597,593.
Employees with salaries higher than Ps597,593 are not entitled to the family allowance.
For further information on this topic please contact Maria Luz Ríos at Montt y Cia SA by telephone (+56 22 233 8266) or email (email@example.com). The Montt y Cia SA website can be accessed at www.monttcia.cl.
(1) This value is used where the law or regulations impose fines or the obligation to make other payments measured by minimum wage that are unrelated to employment.
(2) The family allowance is a payment granted by the government to employees that have certain relatives under their responsibility (eg, underage children, persons with disabilities and elderly persons who do not or cannot work). The payment is made by allowing employers to deduct the amount from social security contributions payable each month on the employee's salary.
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