The Chamber of Deputies approved and dispatched the public sector readjustment bill to the Senate, including a gradual 3.4% salary increase. However, it rejected the controversial 'tie-down norms' pushed by the government, which plans to reintroduce them in the Upper House. Opposition lawmakers criticized the lack of clear funding for part of the fiscal cost.
On January 14, 2026, Chile's Chamber of Deputies approved the public sector readjustment bill and dispatched it to the Senate for further legislative processing. The salary increase is a gradual 3.4%, with 2% in December 2025 and 1.4% in June 2026, equivalent to a 2.8% average fiscal impact. Minimum remunerations exceed 5%, plus bonuses for low-income workers, balancing union demands with fiscal responsibility.
The total cost is US$1.775 billion in 2026, but the Autonomous Fiscal Council (CFA) warned that US$822 million lacks clear funding, requiring reallocations or fiscal slack. 119 of 132 articles were approved, including postponing the revaluation of non-agricultural properties from January 2026 to 2027, extending telework until 2028 for public services and state universities, and requiring trust officials to resign by March 11, 2026.
'Tie-down norms' failed: the proposal to extend from 2 to 5 years the period for contract workers to claim unjustified dismissals before the Comptroller was rejected, keeping it at 2 years; expansions for Correos de Chile in logistics services and for Enap in green hydrogen and renewable fuels projects were also denied. Finance Minister Nicolás Grau stated they would reintroduce these norms in the Senate to honor commitments with the public sector.
Opposition reacted strongly. UDI deputy Felipe Donoso called it a 'blank check,' warning that José Antonio Kast's incoming government would need to adjust to meet it. RN Senator Rodrigo Galilea, Finance Committee president, expects to ratify the readjustment but reject tie-downs, noting necessary reallocations. PSC deputy Roberto Arroyo labeled it 'grave fiscal irresponsibility,' committing non-existent resources. RN's Frank Sauerbaum welcomed rejecting tie-downs and approving benefits for seniors and vulnerable groups.
The bill heads to the Senate Finance Commission on Thursday, January 15, chaired by Ximena Rincón (Demócratas), to discuss its feasibility amid CFA and Comptroller warnings.
