No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeTopicsBusinessPrivate sector workers ask for 4.12 percent salary hike

Private sector workers ask for 4.12 percent salary hike

Unions leaders on Monday presented Labor Ministry officials with a request for salary hikes for the private sector, to be applied in the second half of the year.

“Our basic proposal is a wage adjustment of 4.12 percent, corresponding to 3.75 percent of cumulative inflation from the first five months of the year, plus 0.37 percent still pending from previous negotiations,” said Rafael Mora, a leader of the National Association of Public and Private Employees.

The unions’ request is a first step in the process of setting wage increases, which will continue next Monday when representatives of employers will present a counter-proposal.

On June 25, Labor Ministry officials will present the government’s proposal in a meeting with members of unions and employers’ chambers. The three sectors, combined in the National Wages Council, will try to reach an agreement on a final figure.

Mora said unions also would seek to change wage policy so that increases mostly benefit base salaries, or lower ranking workers.

“I hope this administration finally changes wage policies and that a change generates a positive influence on social inequality,” Mora said in a statement.

Labor Minister Víctor Morales last week said officials may change the formula used to calculate wage hikes, which has been in place since October 2011. The current system uses projected inflation for the first half of the year. Officials may instead use real inflation for the same period.

Accumulated inflation through May was 3.75 percent, while the Central Bank estimates first-semester inflation at 1.98 percent.

“If we follow the established formula, the increase would correspond to just 0.31 percent. That increase would be unacceptable not only for workers but for this administration as well,” Morales said.

Private-sector employees, estimated at 1.3 million, received a 3.78 percent salary increase last October.

Trending Now

Neymar Commits to Santos Until 2026 Amid World Cup Hope

Brazilian forward Neymar has signed a new deal with Santos, committing to the club until December 31, 2026. The announcement came after weeks of...

Argentine Tennis Star Sebastián Báez Enters Australian Open with Momentum

As the tennis world turns its attention to Melbourne for the 2026 Australian Open, Argentine player Sebastián Báez stands out as a steady force...

Dancing with the Stars Host Julianne Hough Shares Costa Rica Vacation

Julianne Hough, the dancer and actress known for her work on Dancing with the Stars, has returned to Costa Rica for a vacation. The...

Why Aryna Sabalenka Is Skipping Tournaments to Prep for Australian Open 2026

As the 2026 tennis season kicks off, world number one Aryna Sabalenka has spoken out against the packed schedule, labeling it as too demanding...

How Altitude Shapes Flavors in Costa Rican Coffee Beans

Coffee growers in Costa Rica know that elevation plays a key role in how beans develop and taste. Farmers in regions like Tarrazú and...

US Ambassador Melinda Hildebrand Lands in Costa Rica with China Message

The new United States to Costa Rica, Melinda Hildebrand, landed in the country on Monday with a pointed reference to China’s economic role here....
L. Arias
L. Arias
Reporter | The Tico Times |
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Travel

Latest News from Costa Rica