Finance Minister Nicolás Grau submitted to Congress a public sector adjustment bill that sets a record with 129 articles, including a controversial tying norm and various miscellaneous initiatives. The proposal draws opposition criticism for its length, lack of funding, and measures that could bind the incoming government. The estimated fiscal cost for 2026 is US$1.775 million.
The Chilean government began processing an ambitious public sector adjustment bill, submitted by Finance Minister Nicolás Grau, which sets a historical record with 129 articles. This initiative, entered into the Chamber of Deputies, not only addresses salary increases and bonuses for public employees but also incorporates a wide range of miscellaneous measures, such as extending telework until 2028, suspending property revaluations until 2027, and extinguishing administrative liability for sanitary infractions during the Covid-19 pandemic.
The bill includes a gradual 3.4% salary increase, with 2% in December 2025 and 1.4% in June 2026, equivalent to a 2.8% average fiscal impact. For minimum wages, the adjustment exceeds 5%, along with bonuses for lower-income workers. However, the total cost for 2026 reaches US$1.775 million, of which only US$660 million is provisioned, leaving the rest to budgetary reallocations or existing subtitles, raising doubts about its funding.
One of the most controversial provisions is the so-called 'tying norm,' which changes the legitimate trust criterion from five to two years for contract renewals, requires formal notifications, and allows claims before the Comptroller General. It also mandates that direct advisors cease functions on March 11, 2026. The opposition, including UDI, RN, and Republican deputies such as Felipe Donoso, Frank Sauerbaum, and Agustín Romero, criticized the bill's length, rushed processing, and impact on the incoming government. 'A project this long cannot be discussed quickly,' said Donoso. Sauerbaum noted it is 'unfunded from the outset.'
Grau rejected splitting the bill, stating that what is approved is approved and what is rejected is rejected. The Finance Committee will meet this Wednesday to advance discussions, aiming to dispatch it next Monday. Of the 129 articles, 37 correspond to the agreement with the Public Sector Table, 69 are miscellaneous improvements, and the rest are budgetary commitments or retirement incentives. Historically, the previous record was 110 articles in 2024 under the same government.
