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 Voted World’s Most Desirable Country by 250,000 Travelers

Costa Rica has been voted the most desirable country in the world by readers of British travel magazine Wanderlust, taking gold in the worldwide...

Costa Rica Has Seized 74 Tons of Drugs This Year, a Total the US Calls Historic

Costa Rican police have seized more than 74 metric tons of drugs so far in 2026, according to the government, a total the United...

Costa Rica’s Dollar Slides Back Toward Its Record Low

The dollar closed Tuesday at 448.43 colones on Monex, 1.63 colones above its all-time low.

Women in Costa Rica Can Now Choose a Female Uber Driver

Women in Costa Rica can now request a female Uber driver. Here is how Uber Mujeres works.

Protest Caravan to Santa Ana Could Slow Traffic West of San José

Shuttle drivers roll from La Sabana to Santa Ana at 7:30 a.m. over new 2027 marchamo fees. Expect delays.

Driving South This Week? Térraba Bridge Closures Run Through November 14

If you're driving the Interamericana Sur through Palmar Norte this week, check the clock before you leave. The bridge over the Térraba River, between...

Costa Rica’s Dry Season Starts This Week in Guanacaste and the Central Valley

If you live in or are visiting Guanacaste or the Central Valley, the rain is about to switch off. Costa Rica's dry season settles...

A Proposed 15% Tax Would Reach Costa Rica Residents’ Foreign Dividends and Interest

Costa Rica residents who earn interest, dividends, rent or capital gains outside the country would pay a 15% tax on that income under a...

Call Center Cuts Costa Rica Job Pledge Over Asian Competition

A Costa Rica call center cut its free zone hiring pledge from 111 to 45 jobs, blaming cheaper rivals in Asia.
Loading…

Latest News from Costa Rica

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