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Costa Rica‘s Labor Ministry offered a proposal for a minimum-wage increase for the private sector this week that aligns more closely with the position of employers than that of employees.
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On Monday, June 21, Labor Minister Sandra Piszk proposed raising the minimum wage for employees by 4.2 percent.
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Early last week, private-sector employees and private unions proposed a hike of between 6.7 and 7.2 percent.
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Late last week, private employers and the Union of Private-Sector Chambers and Associations (UCCAEP) proposed a 3.96 percent boost in pay to the National Wage Council.
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Employees claim that the government and private employers have been using an out-of-date formula from 1998 to calculate wages, and that a nearly 4 percent raise does not reflect the rate of inflation.
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Press officials from UCCAEP denied the claim, and said that formulas are current and that 3.96 percent is a fair rate. Employers can offer more than a 3.96 percent increase if they wish, officials asserted.
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The National Wage Council will consider each of the proposals and is expected to offer a final ruling July 1, at the start of the second half of 2010. The council’s approved increase would take effect immediately.
