No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeCosta RicaPresident Carlos Alvarado reduces salary in the face of economic crisis

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.

Trending Now

El Salvador Slams Paris Fashion Show Inspired by Cecot Mega-Prison Inmates

The president of El Salvador, Nayib Bukele, joked on Saturday that he could send inmates from his mega-prison to France, after they were represented...

Prisma Dental in Costa Rica Keeps Customers Happy and Smiling

I am 81 years old and have had teeth removed, bridges, and cavities fixed several times to sustain my ability to eat and function....

Costa Rica Surf Film Festival Honors ‘Pura Vida Bodysurfing’ with Top Audience Award

Pura Vida Bodysurfing is an award-winning short film that strips surfing back to its essence—riding waves without a surfboard. Filmed across Costa Rica’s legendary...

Hondurans March to Mark 2009 Coup as Election Battle Heats Up

Thousands of government supporters marched Saturday in the capital of Honduras to commemorate the anniversary of the 2009 coup that ousted then-leftist President Manuel...

Costa Rica Pushes USA to the Brink but Falls in Penalty Heartbreak

If you just caught the end of the USA vs. Costa Rica Gold Cup quarterfinal, you probably feel like you need another cup of...

Costa Rica Green Hotels Lead Global Sustainable Tourism

Costa Rica’s reputation as a leader in sustainable tourism grows stronger every year, with our green hotels setting a high bar for eco-conscious hospitality...
spot_img
Costa Rica Tours
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