Government Announces Public-Sector Raise

THE Costa Rican government announced Friday that it will increase public-sector salaries by 5% in the first semester of 2006, taking effect Jan. 1.

A Labor Ministry official told ACAN-EFE that the 5% raise, which will affect 163,245 state employees, was decreed in order to counter rising inflation, which will close this year at approximately 14%.

The last public-sector salary hike was announced in July, corresponding to the second semester of 2005, and was 4%.

This raise and the one in July were both approved by decree, meaning that it was not negotiated with workers, something that is standard practice when raising private sector salaries