HomeNewsCosta RicaControversial public-employment bill passes first debate

Controversial public-employment bill passes first debate

A controversial bill that seeks to regulate public employment passed a first debate in Costa Rica’s Legislative Assembly on Thursday.

The Public Employment Framework Law (21.336) received 33 votes in favor and 15 votes against. It would require 38 votes in a second debate, the the text will first be sent for additional review via a constitutional consultation.

The initiative seeks to create a single framework for employment in the public sector, with eight salary scales. The government says this would simplify public employment, reduce wage inequality, and help contain the increase in spending on salaries charged to the state budget.

“I thank the Legislative Assembly for approving the draft Public Employment Law in the first debate,” said President Carlos Alvarado. “A great step to bring order to public sector salaries, without firing or lowering anyone’s salary, under the principles of justice, equality and efficiency.”

The news was met with protests near the Legislative Assembly, citing concerns about job security, government overreach, and dislike of the International Monetary Fund (IMF).

The public-employment project is part of the initiatives proposed by the government to adjust its finances as part of its agreement with the IMF

The Costa Rican government reached a deal with the IMF that includes a loan for $1.75 billion in exchange for a package of measures to contain its fiscal deficit, which reached 8.3% of GDP in 2020.

Costa Rica’s fiscal deficit grew last year due to the impact of COVID-19, which caused economic activity closures while the government increased spending to address the health and social emergency.

The OECD says that improving public spending efficiency is one of the key challenges facing Costa Rica. In a 2020 report, the economic institution — of which Costa Rica is a part — said public employment reform should be a “first priority.”

“Compensation of government employees accounts for more than half of total revenues, the largest share in OECD countries and more than double the OECD average. Public salaries are also almost 50% higher than in the private sector, after controlling for employees’ characteristics,” the report details.

Trending Now

Costa Rica Opens Prison Modeled on El Salvador’s CECOT

Costa Rica's new maximum-security prison opens today, but no inmates move in until late October. Here is how it will operate, who goes first and the legal fight over its rules.

Costa Rica Water Outage to Affect 13,000 in Heredia

More than 13,000 people in San Rafael de Heredia are expected to lose water service for six hours today, while crews clean two storage...

Costa Rica’s President Says US Government Already Operates on Costa Rican Soil

President Laura Fernández said U.S. government agencies already carry out operations on Costa Rican territory, describing them as the continuation of existing security arrangements...

ATP Proposes $350 Million Player Compensation Plan and Major Ranking Changes

The ATP has unveiled plans to increase annual player compensation to approximately $350 million by 2028, alongside major changes to the men's professional tennis...

Some Liberia Hospital Patients Have Waited Nearly a Week in a Chair for a Bed

Patients at Guanacaste's main public hospital in Liberia say they have spent up to six days sleeping in emergency-room chairs while waiting for a bed.

Costa Rica Raises Mandatory Vehicle Insurance Rates for 2027

Anyone owning a car in Costa Rica will face higher mandatory insurance costs in 2027, with private vehicles, motorcycles and buses among the categories...

Credit Card Purchases Offer New Leads in Killing of American in Costa Rica

Supermarket purchases and a hotel stay allegedly paid for with a dead American’s credit cards have given investigators new leads in the search for...

Costa Rica Ransomware Attacks Rise 39%, Microsoft Reports

Ransomware attacks targeting Costa Rica increased by 39% over the past year, placing us among the world's ten most affected nations, according to Microsoft's...

Costa Rica Searches Guácimo Farm for the Bodies of 10 Missing People

Investigators searched seven homes on a Guácimo farm linked to the Coco Guácimo network after tips that at least 10 missing people may be buried there.
Loading…

Latest News from Costa Rica

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