No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeTopicsBusinessPrivate sector workers ask for 4.12 percent salary hike

Private sector workers ask for 4.12 percent salary hike

Unions leaders on Monday presented Labor Ministry officials with a request for salary hikes for the private sector, to be applied in the second half of the year.

“Our basic proposal is a wage adjustment of 4.12 percent, corresponding to 3.75 percent of cumulative inflation from the first five months of the year, plus 0.37 percent still pending from previous negotiations,” said Rafael Mora, a leader of the National Association of Public and Private Employees.

The unions’ request is a first step in the process of setting wage increases, which will continue next Monday when representatives of employers will present a counter-proposal.

On June 25, Labor Ministry officials will present the government’s proposal in a meeting with members of unions and employers’ chambers. The three sectors, combined in the National Wages Council, will try to reach an agreement on a final figure.

Mora said unions also would seek to change wage policy so that increases mostly benefit base salaries, or lower ranking workers.

“I hope this administration finally changes wage policies and that a change generates a positive influence on social inequality,” Mora said in a statement.

Labor Minister Víctor Morales last week said officials may change the formula used to calculate wage hikes, which has been in place since October 2011. The current system uses projected inflation for the first half of the year. Officials may instead use real inflation for the same period.

Accumulated inflation through May was 3.75 percent, while the Central Bank estimates first-semester inflation at 1.98 percent.

“If we follow the established formula, the increase would correspond to just 0.31 percent. That increase would be unacceptable not only for workers but for this administration as well,” Morales said.

Private-sector employees, estimated at 1.3 million, received a 3.78 percent salary increase last October.

Trending Now

Costa Rica Supreme Court Extends OIJ Directors Suspension

The Supreme Court of Justice extended the suspension of Randall Zúñiga as director of the Judicial Investigation Agency (OIJ) for three more months on...

Costa Rica Claims Second Spot in Global Travel Rankings

Costa Rica has earned second place in the Wanderlust Readers' Travel Awards for the most desirable country in the world. The ranking places the...

Route 32 in Costa Rica Faces Repeated Closures

Drivers on Route 32 faced another disruption today when fallen debris forced a temporary shutdown in the Zurquí area. The Ministry of Public Works...

Miss Mexico’s Walkout Protest Ends in Miss Universe Victory

Miss Mexico was crowned Miss Universe in Thailand on Friday, strutting to victory after several dramatic missteps before the final round, including staging a walkout...

Costa Rica Eliminated from 2026 World Cup After Honduras Draw

Costa Rica's national team drew 0-0 with Honduras in their final Concacaf qualifier match for the 2026 FIFA World Cup, sealing elimination for both...

Costa Rica Willing to Take In Salvadoran Facing U.S. Expulsion

A senior Costa Rican government official has confirmed that the country remains open to receiving Kilmar Abrego García, a Salvadoran man at the center...
L. Arias
L. Arias
Reporter | The Tico Times |
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Rocking Chait
Costa Rica Travel

Latest News from Costa Rica