No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeTopicsBusinessSalary increase for private sector set at 2.01 percent

Salary increase for private sector set at 2.01 percent

The National Wages Council on Monday evening approved a 2.01 percent salary increase for private-sector employees that will be applied in the first half of 2015.

The approved rate corresponds to the proposal presented by government officials during a hearing at the Labor Ministry earlier on Monday.

For domestic workers, the salary increase is 2.5 percent.

“If we had applied the methodology in place since October 2011, it would have resulted in a 1.62 percent increase. We recommended a higher increase, which is in line with this administration’s commitment to better wages,” Labor Minister Víctor Morales Mora said in a press release.

During the council’s previous two sessions union leaders offered three proposals ranging from 2.91-4.58 percent, while the Costa Rican Union of Private-Sector Chambers and Associations (UCCAEP) last week submitted a 1.62 percent proposal on behalf of employers.

“We have been applying methodology from 2011 that takes into account two variables: One is inflation and the other is growth of the country’s gross domestic product. This time, however, the GDP variable was not taken into account, as unemployment currently exceeds 8 percent,” Labor Vice Minister Alfredo Hasbum said.

UCCAEP President Ronald Jiménez said the business sector considers the increase fair as it is the result of normal negotiations between government officials, employers and unions, as established in the 2011 calculation formula.

“Our sector believes that the adjustment is positive, as it defends the purchasing power of the minimum wage without representing a threat to the competitiveness of the country’s businesses,”  Jiménez said.

Union leaders, however, were not as upbeat. Édgar Morales, leader of the National Union of Workers, said he is outraged by the approved percentage.

“We are absolutely dissatisfied,” he said. “Representatives of all three workers’ unions voted against it. … This does nothing to improve the situation for workers or to boost the country’s economy, since higher salaries would have translated into more purchasing power.”

Morales also criticized the position by the administration and employers not to approve a higher increase for unskilled workers such as coffee pickers and other agricultural laborers, who currently earn less than minimum wage.

“The government’s obligation is to ensure that every worker earns at least the minimum wage, but they wouldn’t even discuss it. The extra amount they approved for domestic workers doesn’t even cover daily bus costs,” he said.

New salary rates will take effect on Jan. 1.

Trending Now

Nearly 10,000 Gunshot Emergencies Hit Costa Rica Hospitals Since 2020

Costa Rica's public hospitals have treated nearly 10,000 gunshot emergencies since 2020, showing how the rise in armed violence is affecting far more people...

Costa Rica’s New High-Security Prison for Organized Crime to Be Ready in 15 Days

Costa Rica’s new high-security prison for organized crime is expected to be handed over to the government by the end of September, with authorities...

Costa Rica Independence Day 2026 Brings a Tuesday Holiday and Rain

Plan for rain, road closures and holiday pay rules as Costa Rica marks 205 years of independence on Tuesday, September 15.

Shelton Reaches First Grand Slam Final After US Open Comeback

Ben Shelton moved within one victory of ending a 23-year wait for an American men’s Grand Slam singles champion after beating Frances Tiafoe on...

Video of Orcas Spotted Near Costa Rica’s Cocos Island in Rare Encounter

A group of orcas has been spotted near Costa Rica’s Cocos Island, giving park rangers a rare look at one of the ocean’s most...

Costa Rica Investigates Alleged Mass Data Leak that Included the President

Costa Rica's National Cybersecurity Directorate is investigating a dark web posting in which an unidentified threat actor claims to hold tens of millions of...

Scientists Name First New Wild Cat Species in Over 100 Years

A small spotted wild cat from the cloud forests of Bolivia has been formally described as a new species. Scientists say it is the...

Costa Rica Whisky Fest Returns Today with Tastings, Jazz and a Bit of History

Whisky may not be the first drink associated with Costa Rican culture, but a growing community of collectors, curious beginners and serious enthusiasts is...

Costa Rica Jaguar Reappears After Nearly Three Years Off the Cameras

A jaguar that had not been recorded by a wildlife camera in Costa Rica since 2023 has been photographed again on the Osa Peninsula,...
L. Arias
L. Arias
Reporter | The Tico Times |
🌴 The Weekly Pura Vida

Costa Rica, Once a Week

The week's top stories, weather & insider tips — delivered every Sunday. One email, zero clutter.

🔒 Free. No spam. Unsubscribe anytime.

Loading…

Latest News from Costa Rica

Costa Rica Coffee Maker Chorreador
Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel