The aid programme, which will contribute to subsidize the basic basket for a set of 80 productswill have a fiscal cost of 850 million dollars, Finance Minister Mario Marcel said on Tuesday.
It will be a direct aid to 1.5 million of the poorest households to help offset the cost of the basic food basket, which has risen 14% in the last 12 months.
The amount, which will initially be delivered until December, will be readjusted according to the increase in the basic basket.
The agreement reached with the CUT, the largest multi-union in Chile, to increase the minimum wage to 400,000 (470 dollars) from the current 350,000 starting in August, represents an increase of 12.5%. The agreement must still be ratified by Congress.
“We are combining measures that are immediate, such as this increase in the minimum income and compensation for the increase in the cost of living, with structural reformsMarcel explained in an interview with Duna radio.
Regarding the increase in the minimum wage, the minister stated: “It is not a very radical change for employers, but it is important for workers.”
Last week, Congress rejected two bills that stipulated a new early withdrawal of pension funds after the three approved so far to deal with the economic crisis caused by the pandemic.
The withdrawals together with the direct aid provided by the previous administration of the conservative Sebastián Piñera, who on March 11 handed over power to the leftist Gabriel Boriccontributed to increasing inflation in Chile, which in March accumulated an annual increase of 9.4%.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
