No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeTopicsBusinessWorkers' unions to demonstrate against raise in Social Security rate

Workers’ unions to demonstrate against raise in Social Security rate

Workers’ unions will demonstrate next Monday in downtown San José to protest against the 1 percent increase in the amount deducted from salaries by Costa Rica’s Social Security System, or Caja. The change will take effect starting next month.

Members and leaders of the National Association of Public and Private Employees (ANEP), the country’s largest union, will gather at 7 a.m. in front of the Caja to demand that the institution’s board reverse its decision to raise the amount of the deduction to 10.16 percent.

Those funds are used to finance the Caja’s IVM, the country’s primary pension system.

The agency approved the increase in January, seeking to collect an additional ₡100 billion (some $173 million) per year. Caja Executive President María del Rocío Sáenz explained at the time that the extra resources were essential to guaranteeing the IVM’s sustainability.

Demonstration call

The Secretary General of ANEP, Albino Vargas, called on “workers’ unions members, public and private-sector workers and citizens in general to join the protest.”

Unions leaders hope to block vehicle passage along the capital’s Second Avenue, in front of Caja’s main building, to capture officials’ attention.

“We want them to listen to us and understand that citizens repudiate their actions,” Vargas said at a news conference Tuesday morning.

The union leader said the demonstration also aims to protest high pensions for a small group of bureaucrats. Among others, he referred to the Supreme Court President, Justice Zarella Villanueva, who retired last Friday and will receive a monthly pension of some ₡9.8 million ($17,000).

Vargas also said that if Caja officials refuse to address workers’ requests, they will return to the streets in a new demonstration and national strike on May 29.

Study

The Caja’s Board of Directors based their decision to raise the monthly salary deduction on results of a study conducted by experts from the University of Costa Rica’s School of Mathematics.

The results of the study, disclosed in December, recommended increasing workers’ monthly deduction to avoid bankruptcy of the IVM system, among other measures. It also recommended raising workers’ retirement age from 65 to 70.

The decision sparked general rejection from unions and even from President Luis Guillermo Solís. Casa Presidencial in January requested that the Caja Board suspend the increase until other measures could be evaluated and negotiated.

The Caja, however, as an autonomous agency, rejected the suggestion, as it is entitled to make its decisions without consulting the Executive Branch.

See a video of the unions’ leaders press conference:

https://www.facebook.com/AnepSindicato/videos/vb.249828068443074/1347121612047042/

Trending Now

Costa Rica Coffee Culture and the Surprising Numbers Behind It

I just read a statistic that I find difficult to believe. According to worldpopulationreview.com, Hong Kong consumed a heart-racing 43 kilos of coffee per...

Costa Rica Soccer Team Rocked by Off-Field Problems Before England Match

Costa Rica’s men’s national team is facing another setback at the start of Fernando “Bocha” Batista’s rebuild, after three players were removed from camp...

Costa Rica President Orders Polygraph Tests for Top Officials

President Laura Fernández has widened a controversial order requiring polygraph tests for officials involved in her government's new security strategy, declaring Friday that judicial...

Costa Rica Exchange Rate Still Has Not Reflected Oil Shock, Central Bank Says

The U.S. dollar remains under ¢455 in Costa Rica’s wholesale currency market, even as higher international oil prices threaten to increase the country’s demand...

Nicaragua Publishes Proof of Life Images of Detained Miskito Leader

Nicaragua on Wednesday released images of Indigenous leader Brooklyn Rivera, imprisoned since 2023 and whose proof of life had been requested by U.N. experts....

Costa Rica Opposition Defends Mining Ban as Crucitas Crisis Deepens

Four opposition factions in Costa Rica's Asamblea Legislativa have closed ranks against the executive branch's bid to reopen metallic open-pit mining in Crucitas, ratifying...

Costa Rica Debate Grows Over Moving Annexation Holiday

Nicoya authorities are pushing back against a proposal in Costa Rica’s Legislative Assembly that would move the July 25 holiday commemorating the Annexation of...

Guatemala Denies U.S. Military Strike Deal After Cartel Report

Guatemala’s government spent Thursday pushing back against reports that it had agreed to allow U.S. forces to carry out joint military strikes against drug-trafficking...

Costa Rica Suspends Airport Customs Officer in Alleged Tourist Scam

A customs official at Costa Rica's Daniel Oduber International Airport in Liberia, Guanacaste, has been suspended for four months while prosecutors investigate an alleged...
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

Live prediction market odds via Kalshi. Updates every 60 seconds.
Kalshi is available to US residents 18+. The Tico Times may earn a commission from new signups.

Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel