Iacc Degree Project, Senior Business Administration Technician

CAN A WORKER LIVE ON THE MINIMUM WAGE IN CHILE?
IACC INSTITUTE
NAME OF COURSE OF STUDY: BUSINESS ADMINISTRATION TECHNICIAN
NAME OF MENTION: IN HUMAN RESOURCES
TITLE OF THE DEGREE PROJECT

GUIDE TEACHER NAME: EDUARDO RAUL REYES VERA

NAME PROFESSOR METHODOLOGIST: EDUARDO RAUL REYES VERA
STUDENT'S NAME: JUAN CARLOS SOTO ORTEGA
APRIL 2018
17
SUMMARY
I have to mention that this is a research work and at the same time it tries to be a
combination of the analysis of how the minimum wage influences within a market
economy sustainable in time as Chile's is. This research is based on an approach to the
functioning of an economy and in turn it should be mentioned that this economy has
embedded in its needs a labor market, which provides the necessary labor for it to
function. This study of the minimum wage is based on a series of data reviewed both in
the country and in the international market, which tries to measure the relationship that
exists in the market between employment and the minimum wage, for this we have
looked for a period since the beginning of democracy in the country, and it is here that we
have found interesting results of the evolution of the minimum wage in the country.For
this we have looked for a period since the beginning of democracy in the country, and it is
here that we have found interesting results of the evolution of the minimum wage in the
country.
17
INDEX
1.- Introduction
2.- The problem or object of research
3.- Theoretical Framework
4.- Hypothesis
Methodological Framework
6.- Gathering of information
7.- Analysis and results
8.- Conclusions
9.- Bibliography
17
INTRODUCTION
This research work is carried out with the purpose of obtaining the title of Superior Technician in
Business Administration with mention in Human Resources, which is given by the Instituto Iacc.
What has been developing through these weeks of study has to do with the investigation of
whether "CAN A WORKER LIVE WITH THE MINIMUM WAGE IN CHILE", in this research will try to
capture all the work that has been done through the weeks of study, this research is focused to
see how if the minimum wage goes hand in hand with the expenses that workers who earn this
type of salary have during a month of work.This research is focused on being able to see if the
minimum wage goes hand in hand with the expenses that workers who earn this type of salary
have during a month of work.
In this work we will try to capture in some way all the points reviewed and the types of research
that have been done through the internet and occupying everything that is available and here we
will also mention how some countries in the world have been somehow arranging the minimum
wage so that their workers can live in the best possible way and have no problems with their life
during their work period either inside and outside their work and these are dedicated to develop
their work accordingly and in this work we will try to show that the minimum wage is a minimum
wage.Here we will also mention how some countries in the world have been somehow arranging
the minimum wage so that their workers can live in the best possible way and not have problems
with their lives during the period of work either inside or outside their work and these are
dedicated to develop their work as appropriate and within this research we can see that when you
want everything can be done.-
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THE PROBLEM OR OBJECT OF RESEARCH

In this research work will be the approach of a problem which involves both workers as well as
employers and somehow the government, here somehow we will visualize through some
questions the problems of the researched, these questions are made and answered in some real
context, since in order to have a good minimum wage we have to handle several variables and
within those variables we will reveal somehow the results of the theoretical and practical
frameworks applied in some world economies where despite the growth we have to handle
several variables and within those variables we will reveal somehow the results of the theoretical
and practical frameworks applied in some world economies where despite the growth we have to
handle several variables.In order to have a good minimum wage we have to manage several
variables and within these variables we will reveal in some way the results of the theoretical and
practical frameworks applied in some world economies where despite the growth, whether
positive or negative, workers can live without major inconvenience with the minimum wage:
Why is it important to have a minimum wage?
The importance of having a minimum wage in the country lies in the simplicity that workers do not
earn less than this, and that this is the minimum amount to be received by a worker who develops
in any type of work in the country for a certain period of time, which does not exceed 45 hours per
week, and here we must mention that there are a lot of companies that only pay their workers the
minimum wage, this means that there are employers who see this minimum wage as what
workers should really earn and they take their expenses only with these. it should be mentioned
that there are a great number of companies that only pay their workers the minimum wage, this
means that there are businessmen that see this minimum wage as what the workers should really
earn and they take their expenses only with these.
Who is involved in the creation of this minimum wage?
The creation of this minimum wage involves the participation of government representatives as
well as representatives of the workers and in turn the representatives of the employers and
ultimately the national congress, who are the ones who give the approval for this to become a law.
Can the country's workers live on the minimum wage?
The truth is that it is very difficult to live on the minimum wage, which is only enough for the
country's workers to subsist and make ends meet without being able to save for the future when
they do not have a job and cannot invest anything to improve their lives.
17
THEORETICAL FRAMEWORK
Within the theoretical framework we will try to represent in the best possible way how the
economy of a country goes hand in hand with the work and this in turn goes hand in hand with the
minimum wage earned by workers, it should be mentioned that there are several models of
theoretical frameworks that economists use to study the work itself with the salary, it must be
taken into account that a country must maintain an economy that is capable of evolving and
having a sustained growth over time so that wages are increasing, in this context the country has
had a sustainable economy over time with its ups and downs but always with a sustained growth
over time so that wages are increasing.In this context, the country has had a sustainable economy
over time with its ups and downs but always in evolution, but this evolution is only reflected in the
profits obtained by the companies and not in what the workers earn.
In the theoretical framework it must be pointed out that the entities that participate in the visual
part of the projection of the monthly salary that the country has are the Government
Representatives, the workers represented in some way by the Cut and also the representatives of
the Businessmen, within these participants the economists participate in some way, always
showing how the economy is doing, even though they always show that the economy is good,
once they meet to discuss how to reach a good salary.Although they always show that the
economy is good, once they meet to discuss how to reach a good salary, it seems that the
economy is good, the salary is not, and since the economy is good, things go up, but what they go
up is not reflected in the monthly salary under discussion. It is worth mentioning that this
discussion takes place on an annual basis, but before it is approved, this discussion always ends in
the National Congress, first with the Deputies and then with the Senators, who, once the bill is
approved, give the final approval for it to become law and be made known to the whole country. -
Within the analysis carried out by the national congress is to see what the participants of the
commission that approved this bill have to see and read how the national economy is doing, and
they can also make some corrections, since that is within their attributions, and they can also
reject it and return to square one.They can also make some corrections, since this is within their
attributions, and they can also reject it and return to square one, but it is here that the President
can intervene directly and make it a law. -
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HYPOTHESIS
The hypothesis of this research work would be that some of the participating entities, be it the
government, the workers or the employers, would support a substantial improvement in the
monthly salary earned by the workers and this improvement would be to create within this bill a
way to help increase the minimum wage with a monthly aid, which would go hand in hand with
the production that the workers have within the institution in which they are, that is to say, the
higher the production within the work schedule of 45 hours per week, the higher the production
within the 45 hours per week.This would go hand in hand with the production that the workers
have within the institution in which they work, that is to say, the higher the production within the
working hours of 45 hours per week, the higher the minimum wage would be and this would be
increased in a bonus for production, but within their working hours, and not in a bonus for
production, but within their working hours.The higher and better the production within their
working hours, the higher and better will be the increase of the salary and that not only the
owners of the organizations obtain the profit, but that this is distributed in some way to all those
who participate in the production, here in this point not only not only the owners of the
organizations, but also the workers who participate in the production, but also the workers who
participate in the production.Here at this point not only those who work directly but also
indirectly, for example, the cleaner, the secretary, in other words, all the workers, because if the
worker sees an incentive, he works better and production is higher.-
17
METHODOLOGICAL FRAMEWORK
In this context of a methodological framework for this research, we have tried to conduct an
investigation through the available channels that are on the network either by reading the opinion
of those involved in the creation of the laws of monthly wages in the country and how they affect
workers, we have reviewed for some time ago through the information that has been found and
this has been tried to capture within this research, we have to mention that the minimum wage
was created in the country in order to take care of the workers and that employers pay in some
way to the workers and that employers pay the minimum wage in the country.We must mention
that the minimum wage was created in the country with the purpose of taking care of the workers
in some way and that the employers pay in some way for the work done by the workers, that is
the reason why this is analyzed annually. Within the investigation it is necessary to see how has
been the formula so far that has been used in the creation of this and if it is feasible to try to
improve it and that this annually go increasing this salary and there are no commissions every year
claiming for the improvement and increase of this, it must be taken into account that the expenses
of the family basket increases every year and what the minimum wage increases is much lower
than this.It must be taken into account that the cost of the family basket of goods increases every
year and the minimum wage increases are much lower than this, since the minimum wage is not
taken into account in the creation of the minimum wage.The minimum wage does not take into
account all the minimum expenses that workers have monthly, only the government interacts
within the family basket, but it makes the basket with the help of economists who do not take all
the expenses that a worker has monthly, that is why this salary only serves for the worker to
subsist and not live as do countries in the world that have like Chile a sustainable growth over
time.
17
INFORMATION GATHERING
Among the information obtained from the information reviewed, a table of the evolution of the
minimum wage in the country was found, which is attached:
For workers over 18 years of age and up to 65 years of age:
Wei
%
Gross ghts % of
avera
amoun ch. GDP
Variatio ge U.S.
t in to per Regulati
From To n salary Dollars
Chilea 31- capit 3 ons
real (45
n Dec. a of
hours) year2
pesos - 1
2016
Septembe February
11 335 78 734 — 35,6 % 118 Law 18.647
r 1, 1987 1, 1989
February May 31,

15 488 88 471 12,4 % 30,8 % 133 Law 18.774
1, 1989 1989
June 1, May 31,

18 000 97 818 10,6 % 35,7 % 147 Law 18.806
1989 1990
June 1, May 31, 113 70

26 000 16,2 % 41,4 % 170 Law 18.981
1990 1991 2
June 1, May 31, 116 12

33 000 2,1 % 40,9 % 174 Law 19,060
1991 1992 5
June 1, May 31, 117 32

38 600 1% 38,6 % 176 Law 19,142
1992 1993 2
June 1, May 31, 123 51

46 000 5,3 % 39 % 185 Law 19,222
1993 1994 9
June 1, May 31, 124 27

52 150 0,6 % 37,4 % 186 Law 19,307
1994 1995 0
17
Wei
%
Gross ghts % of
avera
amoun ch. GDP
Variatio ge U.S.
real (45
n Dec. a of
hours) year2
pesos - 1
2016
June 1, May 31, 130 66

58 900 5,1 % 35,3 % 196 Law 19,392
1995 1996 3
June 1, May 31, 133 80

65 500 2,4 % 36 % 201 Law 19,457
1996 1997 3
June 1, May 31, 138 32

71 400 3,4 % 35,8 % 207 Law 19,502
1997 1998 3
June 1, May 31, 148 05

80 500 7% 38,8 % 222 Law 19,564
1998 1999 8
June 1, May 31, 160 09

90 500 8,1 % 43,3 % 240 Law 19,564
1999 2000 9
June 1, May 31, 170 70

100 000 6,6 % 44,1 % 256 Law 19,564
2000 2001 9
June 1, May 31, 173 60

105 500 1,7 % 43,7 % 260 Law 19,729
2001 2002 6
June 1, June 30, 179 13

111 200 3,2 % 43,7 % 268 Law 19,811
2002 2003 5
July 1, June 30, 179 98

115 648 0,5 % 42,2 % 270 Law 19,883
2003 2004 2
17
Wei
%
Gross ghts % of
avera
amoun ch. GDP
Variatio ge U.S.
real (45
n Dec. a of
hours) year2
pesos - 1
2016
July 1, June 30, 185 60

120 000 2,7 % 38,5 % 278 Law 19,956
2004 2005 5
July 1, June 30, 192 04

127 500 3,5 % 36,3 % 288 Law 20,039
2005 2006 5
July 1, June 30, 196 01

135 000 1,9 % 32,6 % 294 Law 20,039
2006 2007 3
July 1, June 30, 203 24

144 000 3,3 % 31,9 % 305 Law 20,204
2007 2008 2
July 1, June 30, 206 12

159 000 0,9 % 34,2 % 309 Law 20,279
2008 2009 0
July 1, June 30, 207 60

165 000 1,9 % 34,9 % 311 Law 20,359
2009 2010 6
July 1, June 30, 213 29

172 000 3,1 % 35,5 % 31,9 % 320 Law 20.449
2010 2011 0
July 1, June 30, 218 56

182 000 2,3 % 33,9 % 31,2 % 328 Law 20,524
2011 2012 6
July 1, July 31, 224 74

193 000 3,3 % 32,6 % 31,3 % 337 Law 20,614
2012 2013 1
August 1, June 30, 210 000 240 08 6,5 % 33,3 % 32,4 % 360 Law 20,689
17
Wei
%
Gross ghts % of
avera
amoun ch. GDP
Variatio ge U.S.
real (45
n Dec. a of
hours) year2
pesos - 1
2016
2013 2014 2
July 1, June 30, 246 17

225 000 2,5 % 34,7 % 32,5 % 370 Law 20,763
2014 2015 4
Decemb
July 1, 252 52
er 31, 241 000 2,6 % 35,3 % 33 % 378 Law 20,763
2015 1
2015
January June 30, 250 00

250 000 1,7 % — — 375 Law 20,763
1, 2016 2016 0
Decemb
July 1,
er 31, 257 500 — — — — — Law 20,935
2016
2016
January June 30,

264 000 — — — — — Law 20,935
1, 2017 2017
Decemb
July 1,
er 31, 270 000 — — — — — Law 20,935
2017
2017
January
— 276 000
1, 2018
This table shows the evolution of the increases that the minimum wage has obtained in the
country, it is worth mentioning that these salaries always come into effect on July 1 of each year
17
and these are regulated by the ILO (International Labor Organization), this organization is
responsible for ensuring good labor practices worldwide.
Contrary to what is believed that people within the workday I have to mention that there are
companies that leave the rule of only paying a minimum wage for 45 hours of work per week and
these are the construction companies which encourage their workers by offering them a deal for
the work done for example Constructora Guillermo Perez Rivera, this for each job performed by
the worker has a price and it is here that each worker knows what he has to do and when they
enter to work they know in advance the value of what he is going to perform and he is paid for
it.rez Rivera, this for each job that the worker does has a price and it is here that each worker
knows what he has to do and when they enter to work they know beforehand the value of what
he is going to do and he realizes that with a constant work within the working day he will be able
to earn a better monthly salary.-
Here also with this type of work for price the organization obtains a better performance in time
and their jobs come out in the time they have them scheduled, for me this organization has a
vision and a mission to first finish their jobs when they propose it and also their workers earn in
relation to what they do and that is why this has been sustainable over time, what I try to capture
with this example is that the higher the production, the greater the reward and the minimum
wage is secondary because no one is concerned about how to get to get to the end when they
propose it.What I am trying to show with this example is that the higher the production, the
higher the rewards and the minimum wage becomes a secondary issue because nobody is worried
about how to make ends meet with what they earn because when they start working, they have a
vision of their future working in these conditions.-
There are companies or organizations that leave the context of a minimum wage and these are
very far from reality and with this I am talking about the companies that work in mining, be it
copper, gold and now what has to do with the exploitation of lithium, these leave this context
because what a worker earns here does not have to do with the reality of the country. -
17
ANALYSIS AND RESULTS

The analysis that can be drawn from this research is that the higher the salary within the working
day, the higher and better the production will be, but this implies that all the entities that
participate in the laws of the creation of minimum salaries should agree that if there are workers
who stand out above the rest, they should have a bonus in their salary and thus all workers can be
encouraged to follow the example of those who within the working day have a bonus in their
salary.If there are workers who stand out above the rest, they should have a bonus in their salary
and thus all workers can be encouraged to follow the example of those who produce more and
obtain better salaries during the working day.
For example in Europe there is a country called Luxembourg where their workers get a salary that
is approximately four times what a worker earns here in the country, putting Luxembourg in the
first place in the world with a sustainable economy over time but the wealth that employers
obtain is distributed in a better way with their workers and it is for this reason that the quality of
life of the workers in this country is what every worker in the world wants, here they work to live
because the reward for what they do is always greater and they work 40 hours a week, having
more time for more than 40 hours a week.The quality of life of the workers in this country is what
every worker in the world wants, here they work to live because the reward for what they do is
always greater and they work 40 hours a week, having more time for themselves and their families
and thus having a better quality of life.
17
CONCLUSIONS
The conclusion that we can draw is that if within the salary that a worker earns these are
increased this will significantly affect the welfare of workers, since within the studies that
economists and statisticians have made, the better the salary, the higher the production and the
better the quality of life, but for this to become a reality, we have to change the mentality first of
all of the workers and also the mentality of the employers, who often only pay the minimum wage,
not seeing that if they encourage their workers with more and better incomes within their working
hours, the better and better results they will have in their workplaces.But for this to become a
reality, we have to change the mentality first of all of the workers and also the mentality of the
employers, who often only pay the minimum wage, not seeing that if they encourage their
workers with higher and better income within their working hours, they will have better and better
results in their organizations and these will be more sustainable in time.
And the key word here in this discussion is called labor incentive, this word is the one that must be
taken into account by the entities that every year are looking at the minimum wage problem in the
country.
17
BIBLIOGRAPHY .
Internet content: https://www.datosmacro.com/pib/chile
Own experience (Constructora Guillermo Pere Rivera)
Work and controls carried out during Iacc weeks
17
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CAN A WORKER LIVE ON THE MINIMUM WAGE IN CHILE?

TITLE OF THE DEGREE PROJECT

GUIDE TEACHER NAME: EDUARDO RAUL REYES VERA

THE PROBLEM OR OBJECT OF RESEARCH

For workers over 18 years of age and up to 65 years of age:

February May 31,

June 1, May 31,

June 1, May 31, 113 70

June 1, May 31, 116 12

June 1, May 31, 117 32

June 1, May 31, 123 51

June 1, May 31, 124 27

June 1, May 31, 130 66

June 1, May 31, 133 80

June 1, May 31, 138 32

June 1, May 31, 148 05

June 1, May 31, 160 09

June 1, May 31, 170 70

June 1, May 31, 173 60

June 1, June 30, 179 13

July 1, June 30, 179 98

July 1, June 30, 185 60

July 1, June 30, 192 04

July 1, June 30, 196 01

July 1, June 30, 203 24

July 1, June 30, 206 12

July 1, June 30, 207 60

July 1, June 30, 213 29

July 1, June 30, 218 56

July 1, July 31, 224 74

July 1, June 30, 246 17

January June 30, 250 00

January June 30,

ANALYSIS AND RESULTS

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