No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeArchiveTips taken under the table

Tips taken under the table

While restaurants automatically add a 10 percent gratuity charge to bills, Costa Rican waiters will soon be counting tips as under-the-table transactions.

With the passing of a new law, waiters can no longer count their tips as part of their salary – an action that will affect the benefits and pension plans of all waiters across the country, according to a Legislative Assembly news bulletin.

The money will be untaxed by the government, which may sound like a plus, but the implications are far larger in Costa Rica. At the end of each year, Costa Ricans receive an extra month´s salary, depending on their average monthly wage. So, with a smaller official salary comes a smaller year-end bonus.

Sergio Huertas, a waiter at the San José restaurant Nuestra Tierra, said he liked the idea of the government keeping its hands off the tips, but the reduced salary means a smaller pension.

“When your salary is bigger, you have to pay more official charges,” Huertas said. “Right now, it´s a fictitious salary because it´s not officially registered.”

His fellow waiter, Duclos Villarecía, was happy with the changes.

“For me, it´s excellent,” he said, “because the government and the bank can´t mess with my money as much now.”

But Huertas said in the long run, their pensions will be smaller for the move.

The law drew harsh criticism from the Social and Christian Unity Party (PUSC).

“What´s certain is that this project will create a great injustice that will directly reverberate in families´ incomes, not in the accounting systems of the business owner,” said PUSC legislator Jorge Eduardo Sánchez, according to the news bulletin.

Trending Now

Costa Rica Tribunal Denies Efforts to Bar Salvadoran President Bukele’s Visit

The Supreme Electoral Tribunal (TSE) turned down two legal challenges aimed at stopping Salvadoran President Nayib Bukele from entering Costa Rica. The decision came...

Costa Rica Highway to Close Temporarily for Wildlife Crossing Installations

Motorists traveling between the capital and the Caribbean coast need to adjust their plans this week. Route 32, the key highway linking San José...

Trial begins in Panama over alleged Odebrecht bribe laundering

Former Panamanian president Ricardo Martinelli, now in asylum in Colombia, and around 20 other defendants went on trial Monday in Panama on accusations of...

Patient Lives at Stake as Costa Rica’s Night Flight Restriction Delays Transfers

The Costa Rican Social Security Fund (CCSS) has raised concerns over a ban on nighttime flights at the nation's airfields, which has hindered prompt...

Camila Osorio Targets Deep Run at 2026 Australian Open

As the tennis world turns its eyes to Melbourne Park for the 2026 Australian Open, Colombia's Camila Osorio stands out as a player ready...

Costa Rica Presidential Hopefuls Unite Against Fernández in Debate

In last night's heated presidential debate hosted by the Tribunal Supremo de Elecciones, Laura Fernández of the Partido Pueblo Soberano came under heavy fire...
Avatar
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Travel

Latest News from Costa Rica