Costa Rica Coffee Guide

Private sector start pay-raise talks at 6 percent

October 17, 2008

Costa Rica´s principal business association announced Monday that it is willing to begin negotiations for increase in minimum salaries at 6 percent.

The nation´s minimum wages – which vary depending on the industry – are adjusted twice a year through a negotiation between labor leaders, private business and the government.

The raise would apply to the first half of 2009.

Last week, labor leaders called for salary increases of between 12 and 16 percent for public and private sector workers in order to keep pace with the rising cost of living.

Inflation has surged 15.77 percent during the past 12 months, the highest year-over-year increase since 1998, according to the National Statistics and Census Institute.

The Union of Private Sector Chambers and Associations (UCCAEP), which represents 42 private business chambers, said in a statement it “recognizes that inflation for the second semester of 2008 will be above 6 percent.”

However, UCCAEP said that for more than six months it has been warning that a lack of credit availability, both in credit lines and business loans, is “squeezing” the private sector, while the Legislative Assembly´s failure to pass the Central American Free-Trade Agreement with the United States (CAFTA) is generating “uncertainty” among businesses.

UCCAEP called for the eventual minimum salary increase to take into consideration “the country´s social and economic reality.” It also noted that 98 percent of businesses in Costa Rica are medium-, small- and micro-sized, and salary increases hit their finances the hardest.

You may be interested

Costa Rica approves law punishing street sexual harassment with jail and fines
Costa Rica
5804 views
Costa Rica
5804 views

Costa Rica approves law punishing street sexual harassment with jail and fines

AFP and The Tico Times - July 14, 2020

Costa Rica's Legislative Assembly on Tuesday passed a law that criminalizes street sexual harassment and punishes it with prison terms…

Costa Rica coronavirus updates for July 14, 2020
Costa Rica
21356 views
Costa Rica
21356 views

Costa Rica coronavirus updates for July 14, 2020

Alejandro Zúñiga - July 14, 2020

Costa Rica confirmed 446 new cases of the coronavirus over the past day, totaling 8,482 cumulative known cases, the Health…

Panama hospitals on verge of collapse as virus cases surge
Latin America
1219 views
Latin America
1219 views

Panama hospitals on verge of collapse as virus cases surge

Juan José Rodríguez / AFP - July 14, 2020

Hospitals in Panama are on the brink of collapse as coronavirus cases spike in the Central American country worst hit…