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Private sector employers propose 1.62 percent salary increase for 2015

October 21, 2014

Business leaders on Monday evening sent the National Wages Council a proposal for a 1.62 percent increase in private-sector salaries across all job categories.

“We strongly believe the next increase should be the same for all job categories, instead of separate amounts, as was approved the last time around. That type of increase causes problems,” Luis Mesalles, president of the Union of Private-Sector Chambers and Associations (UCCAEP), said.

Labor representatives last week submitted a proposal for increases ranging from 2.91-4.58 percent, depending on worker’s salary level. That calculation takes into account 1.9 percent projected inflation for next year plus 0.9 percent projected gross domestic product growth.

“We believe the employers’ proposal falls short, … and we expect the government to propose an increase closer to the reality of the cost of living,” Édgar Morales, a spokesman for the National Workers’ Union, said on Monday evening.

Labor Minister Víctor Morales will submit the government’s proposal next Monday. The same day, the National Wages Council will determine the salary increase, which will take effect on Jan. 1.

The last wage increase for 1.2 million workers in the country’s private sector was approved last July.

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