No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeTopicsBusinessPrivate sector workers ask for 4.12 percent salary hike

Private sector workers ask for 4.12 percent salary hike

Unions leaders on Monday presented Labor Ministry officials with a request for salary hikes for the private sector, to be applied in the second half of the year.

“Our basic proposal is a wage adjustment of 4.12 percent, corresponding to 3.75 percent of cumulative inflation from the first five months of the year, plus 0.37 percent still pending from previous negotiations,” said Rafael Mora, a leader of the National Association of Public and Private Employees.

The unions’ request is a first step in the process of setting wage increases, which will continue next Monday when representatives of employers will present a counter-proposal.

On June 25, Labor Ministry officials will present the government’s proposal in a meeting with members of unions and employers’ chambers. The three sectors, combined in the National Wages Council, will try to reach an agreement on a final figure.

Mora said unions also would seek to change wage policy so that increases mostly benefit base salaries, or lower ranking workers.

“I hope this administration finally changes wage policies and that a change generates a positive influence on social inequality,” Mora said in a statement.

Labor Minister Víctor Morales last week said officials may change the formula used to calculate wage hikes, which has been in place since October 2011. The current system uses projected inflation for the first half of the year. Officials may instead use real inflation for the same period.

Accumulated inflation through May was 3.75 percent, while the Central Bank estimates first-semester inflation at 1.98 percent.

“If we follow the established formula, the increase would correspond to just 0.31 percent. That increase would be unacceptable not only for workers but for this administration as well,” Morales said.

Private-sector employees, estimated at 1.3 million, received a 3.78 percent salary increase last October.

Trending Now

Costa Rica’s Whale and Dolphin Festival Returns This Weekend

If you have been waiting for the right weekend to see humpback whales in Costa Rica, this is it. The 16th Whale and Dolphin...

Costa Rica Expects Major Cruise Tourism Jump in Puntarenas

Costa Rica expects around 150,000 cruise passengers to arrive in Puntarenas during the 2026–2027 season, a sharp increase that could bring more business to...

US Calls on Allies to Cut Off Nicaragua After Ortega Bars Opposition Parties

The United States asked its international partners to immediately end normal dealings with Nicaragua's government, hours after the Ortega-Murillo administration formalized a constitutional rewrite...

What a Costa Rican migratory alert actually does

A judicial notice served on live television this week put an obscure piece of legal machinery in front of all of Costa Rica. Most...

Costa Rica Issues Green Alert as Rincón de la Vieja Activity Increases

Costa Rica has placed five areas near Rincón de la Vieja Volcano under a preventive green alert after more than 100 eruptions were recorded...

Costa Rica Police Officer Jailed for Allegedly Helping Diablo Drug Network

The Fuerza Pública officer, identified as Ureña, was detained this week during raids in Sarapiquí and Pococí. Prosecutors are investigating his suspected relationship with...

Costa Rica’s Pacific Waters Reach Unusually High Temperatures

Ocean temperatures along Costa Rica’s Pacific coast are running unusually high, with researchers recording water up to 2°C (3.6°F) warmer than normal in some...

IMF Agrees to Unlock $140 Million for El Salvador After Bitcoin Reforms

The International Monetary Fund (IMF) announced that it had reached an agreement with El Salvador that could unlock a $140 million loan disbursement, after...

Why is Daniel Ortega Shutting Nicaragua’s Opposition Out of Elections?

Nicaragua approved a constitutional reform that bars the opposition from participating in elections and extends Daniel Ortega’s term in office, a measure aimed at...
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
Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel