President Carlos Alvarado reduces salary in the face of economic crisis
The President of Costa Rica, Carlos Alvarado, announced Thursday that he will reduce his salary by 15% in support of his government’s proposal to cut the highest wages in the public sector to alleviate the economic crisis caused by the COVID-19 pandemic.
The president’s announcement came as the Legislative Assembly discussed a government proposal to cut 15% of the government’s highest wages, including those of lawmakers.
“The health pandemic has caused an economic pandemic,” President Alvarado wrote on Twitter. “The country is going through hard times, and that is why the government proposed to reduce the working hours of public employees by 15% for those who earn more than ₡1.5 million [per month].”
He added that “starting today (Thursday) I will voluntarily lower my salary to meet that 15% in total.”
The proposal to cut wages is part of an extraordinary budget the government presented to Congress to meet the demand of the pandemic. It includes a cut in public spending equivalent to 1% of gross domestic product (GDP).
Costa Rica has a delicate fiscal situation aggravated by the pandemic, which in the last month has spread with more force, reaching nearly 9,000 infections and 40 deaths as of Wednesday.
The country accumulated until the end of 2019 a fiscal deficit of 6.96% of GDP. That figure could reach 9.7% of GDP for this year as a result of the pandemic, according to the Ministry of Finance.
You may be interested
Slothy Saturday: Happy Mother’s Day from this momma slothThe Tico Times - August 15, 2020
While we here at The Tico Times usually publish sloth photos on Sundays, today we're celebrating a day early. Janet…
Costa Rica celebrates Mother’s DayThe Tico Times - August 15, 2020
Happy Mother's Day from all of us at The Tico Times! Día de la Madre is a national holiday and…
Costa Rica coronavirus updates for Friday, August 14Alejandro Zúñiga - August 14, 2020
Costa Rica announced nine new coronavirus-related deaths over the past day for a total of 281, according to official data…