The Costa Rican Union of Chambers and Associations of the Private Business Sector (UCCAEP) proposed a 2.96% increase for all minimum wages in the private sector, which would be in force as of January 2019.
The proposal was announced on Monday before the National Salary Council. Gonzalo Delgado Ramírez, president of UCCAEP, explained that the wage setting is made annually and the adjustment formula is determined based on two components: the increase in the cost of living and the growth of the Gross Domestic Product per capita.
According to the formula, the component related to the increase in the cost of living (which includes expected and actual inflation) gives 2.21%; while the second component that refers to “productivity” (a percentage of the average growth rate of three years) gives 0.75%.
This methodology is still valid, showing good results for both workers and employers, despite the fact that we are in a complex national situation, given the illegal and unjust protest movement we were subjected to. The country is still stuck in its growth and productivity,”
said Ramírez.