Government and Public Sector Union Conclude 3.4% Salary Adjustment and 5% Raise for Low-Income Workers

Original article: Gobierno y Mesa del Sector Público acuerdan reajuste de 3,4% y alza de 5% enfocada en los sueldos más bajos

After intense negotiations that continued into the early hours of Wednesday, the Government and representatives from the Public Sector Union (MSP) sealed a salarial agreement for state workers, including a general adjustment of 3.4% and a differentiated 5% increase for minimum salaries and bonuses for lower-income officials.

The agreement, celebrated by both parties, also includes a range of additional measures aimed at strengthening labor conditions and providing greater job security in the public sector.

The accord was reached at the Palácio de La Moneda, with the participation of Finance Minister Nicolás Grau, Labor and Social Security Minister Giorgio Boccardo, and a broad representation from MSP unions and worker organizations affiliated with the Central Unitary Workers’ Federation (CUT).

Emphasis on the Dignity of Public Service

“We have achieved a good agreement that, in addition to the adjustment, places the dignity of public service at its core. This completes four years of reaching agreements with the Public Sector Union, improving the quality of life for those who work in the state and providing governance for the country,” Grau remarked.

Meanwhile, Minister Boccardo emphasized, “We are very pleased to have reached an agreement with the Public Sector Union as part of the adjustment law.”

He noted that this understanding aims to balance not only the economic demands of state workers but also to uphold two essential aspects: “quality public employment and the full exercise of labor rights.”

“We appreciate the willingness of the MSP to reach this agreement, which will allow us to advance in the common goals of the public sector and address significant sectoral issues for the various unions represented,” he stated, as captured in a press release from the Ministry of Finance.

Union Assessment: “This Agreement Strengthens Public Service”

Worker representatives acknowledged that while initial expectations were higher, they positively assessed the agreement, highlighting its non-economic components.

“We have concluded the 2025 negotiation for the public sector. While it’s true that the union’s expectations are always higher, considering the current realities, we have reached an agreement that satisfies the majority of the MSP. Therefore, we are ready to sign it and defend it in Parliament,” stated CUT National President José Manuel Díaz.

MSP coordinator Laura San Martín analyzed the process and its outcomes: “After two intensive days, we have achieved an agreement that goes far beyond figures. This is an agreement with substance and principles: job stability, union freedom, and decent work. We also made progress on decent work for honorary colleagues, with union participation, to better protect their rights. We reaffirmed union freedom, as it is unacceptable for union leaders to lose their salaries for fulfilling their roles. We will not compromise on these principles,” she declared.

“This agreement strengthens public service, recognizes the value of the work of officials, and allows for better service to citizens, with rights, stability, and dignity,” she emphasized.

The agreement is part of what the Government calls its administration’s “seal”: prioritizing social dialogue and understanding with workers’ organizations as a foundation for sustainable public policies. With this, four consecutive years of agreements with the Public Sector Union are completed.

In the coming days, the Executive will formalize the understanding in a public sector adjustment law project, which will be sent to the National Congress for processing. The goal from La Moneda is to ensure that the law is dispatched within the corresponding legal deadlines, thereby guaranteeing that the agreed increases come into effect promptly to benefit all public officials in the country.