In the latest on Chile's record 129-article Public Sector Readjustment Law, submitted last week, Congress approved 36 articles on Wednesday despite backlash over 100+ miscellaneous add-ons. Labor Minister Boccardo defends the measures as essential updates, while critics decry the 'denatured omnibus' bill lacking funding clarity. Average 2.8% salary hike carries US$1.7 billion cost.
Following the government's submission of Chile's 2026 Public Sector Readjustment Law—a record 129-article bill including a 2.8% average salary increase for public servants at US$1.7 billion cost—debate intensified in Congress. On Wednesday, 36 articles advanced, per Labor Minister Giorgio Boccardo, who justified the bill's broad scope covering budget commitments, recent law clarifications, and state efficiency improvements like Correos de Chile and Enap operations (needing qualified quorum), contract worker modifications, conditions for employees over 75, and accelerated Local Education Services timelines.
Boccardo emphasized the executive's tradition of bundling reforms via this expedited law, rejecting claims it complicates dismissals for the 300,000 contract workers among 500,000 central state employees. "Dismissals should be justified to reduce judicial uncertainty," he said, while calling for public employment modernization and defending civil servants' essential roles in health, education, and IPS against 'systematic denigration.'
Opposition and outlets like La Tercera criticize the 100+ 'add-ons' as tying the next administration's hands, demanding deeper debate on complex issues and clear financing—especially after initial budget assumptions of zero readjustment. The government anticipates approving most of the bill soon, focusing debate on key contentious points.
