The Senate's Finance Committee started reviewing the public sector readjustment bill, presented by Finance Minister Nicolás Grau. Deputies approved a 3.4% gradual salary increase but rejected the 'tie-breaker norm' aimed at greater job stability. Opposition anticipates rejecting that provision again in the Senate.
The public sector readjustment bill entered its second legislative stage after being dispatched by the Chamber of Deputies. Finance Minister Nicolás Grau presented the guidelines to the Senate's Finance Committee, highlighting the 3.4% nominal salary readjustment, split into 2% for December 2025 and 1.4% for June 2026. This increase carries a fiscal cost of US$1.775 million in 2026, of which the Autonomous Fiscal Council (CFA) warned that US$822 million lack clear financing, requiring reallocations or fiscal slack.
Additionally, the postponement of the revaluation of non-agricultural properties from January 2026 to January 2027 was approved, along with extending telework until 2028 for central government services, universities, and state technical training centers. It was also established that trust officials in the offices of the Presidency, ministries, and other authorities must resign before March 11, 2026.
However, the 'tie-breaker norm' was rejected in the Chamber. This original provision allowed contract workers to claim unjustified dismissals before the Comptroller after two years; the government tried to extend it to five years but it did not pass. Other rejected norms include enabling logistics services for Correos de Chile and Enap's participation in green hydrogen and renewable fuels projects.
Grau notified that the government will reintroduce the rejected articles, including the tie-breaker norm. The opposition, however, opposes it. UDI Senator David Sandoval stated: 'The project is reasonable, but everything related to the tie-breaker in the Senate will not prosper.' Senator Ximena Rincón (Democrat), commission president, criticized: 'It is illogical for this government to try to tie certain norms and secure positions when they are leaving.' Socialist Senator José Miguel Insulza expects consensus in the next session on January 19.
On financing, Sandoval questioned the government's lack of truthful information. Rincón added: 'The government is failing to explain where the resources will come from.' Furthermore, the voluntary retirement incentive plan for employees over 75 years old drew criticism for age discrimination, with Insulza and Rincón arguing it violates international treaties and promotes 'ageism.' Sandoval shared the concern, advocating for an adequate retirement system to renew structures without restrictions.
