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Wage raise for Costa Rica’s private sector set at 3.78 percent

October 23, 2013

Some 1.3 million workers in Costa Rica’s private sector will receive a 3.78 percent wage increase effective Jan. 1.

In a majority vote the National Wages Council on Wednesday evening approved the figure that will apply for salaries during the first semester of next year.

The final percentage was proposed by government officials and consists of 2.47 percent of projected inflation, 0.77 percent cumulative inflation for the first half of 2013 and 0.54 percent for gross domestic product growth in the last five years.

The proposal received “yes” votes from unions and government council members, while employers voted against it.

Union leaders last week had proposed a 3.96 percent hike, while employers proposed a 3.60 percent increase.

Costa Rican Chambers Union and Private Business Sector Associations President Jaime Molina said the private-sector proposal “sought to avoid affecting high unemployment rates, estimated at more than 10 percent and the highest since October 2011.”

The last increase approved for the country’s private sector was 2.40 percent, which took effect on July 1. 

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