American Expatriate Costa Rica

Bonuses will consume 42.5% from the 2.5-billion-colon salary budget for 2017

According to an analysis from the Office of the Comptroller General regarding the national budget for 2017, salary incentives will consume 42.5% out of the 2.5 billion colones that the government aims to spend on salaries in 2017,

That percentage is slightly higher than spending on basic salaries, which will reach 39.8%. and it is followed by employers’ contributions to pensions and health insurance (16.3%) and the remaining 1.4% belongs to “possible and several remunerations”.

On average, for every colon budgeted for basic salaries, it is estimated that 1.07 colones in bonuses must be paid, as explained by general comptroller Marta Acosta.

As in previous periods, growth in salary compensation exceeds the basic remuneration, with variations of 6.3% and 4%.

The main budget expenditure comes from current transfers (2.6 billion colones), compensation (2.5 billion colones) and public debt’s amortization, interest and fees (1.8 billion colones).

According to the report, remuneration expenses are characterized by being greatly concentrated in three institutions: Ministry of Public Education (59.2% share), Judiciary (14.4%) and Ministry of Public Security (6.7%).

The importance of paying incentives on full payments shows the urgency of approving legal reforms to limit bonuses in the public sector, as opposition legislators agreed.

Legislator Rosibel Ramos, chairman of the Committee on Financial Affairs, declared that it is necessary to correct the issue of misallocated salary bonuses without violating employees’ acquired rights.

In addition, Mario Redondo stated that incentives have a high impact on the budget and expenditures. Furthermore, Otto Guevara said that it is pretty evident that the country must work on the issue of public employment because the large amount of bonuses should be streamlined.

Lawmakers from the Committee on Social Affairs are discussing a bill that aims to limit salary bonuses in the public sector in order to regulate incentives related to dedication, prohibition, career, annuities and collective agreements.

crhoy.com