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Minimum Wage to Increase in January

October 22, 2010

Costa Rica’s minimum wage will increase by 2.63 percent on Jan. 1, 2011, the Labor Ministry announced Thursday.

The increase is due to a rise in the country’s inflation rate, but has been kept low in order not to stimulate the loss of more jobs.

“The government has considered many factors: first, this number corresponds with the amount lost in purchasing power … second, it takes into consideration that we are in a very delicate time in which we have lost a great number of jobs – 7.8 percent or the equivalent of 166,000 people,” said Costa Rica’s Labor Minister Sandra Piszk in a statement.

Costa Rica’s minimum wage varies based on skill and education level, but for an unskilled worker it is set at ¢7,200 ($14) per day, which will increase to ¢7,390 (the equivalent of a ¢3,800 ($7.60) raise over a one-month period). The minimum wage was last raised by 3.41 percentin July, affecting some 1.5 million workers.

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