The Costa Rican Union of Chambers and Associations of Private Enterprise (UCCAEP) said that the decision of the Executive Power to standardize wages with three almost simultaneous increases in 2020 will increase unemployment.
Through a statement released on Sunday, the business organization asked to reverse the decision because it would be a “severe blow” to economic activities that are in slowdown.
The scheme composed of the annual increase of 2.54%, decreed the previous month, plus the homologation, together with the next increase in the employer’s contribution to the IVM regime of the Costa Rican Social Security Fund (CCSS) would raise the minimum wages very above inflation.
For the business sector it is unwise to approve and execute the salary homologation in 2020, also causing a strong impact on productive sectors such as agriculture, commerce, transport, tourism and construction,”
said UCCAEP.
Álvaro Sáenz, president a.i. of the organization, said that the increase of 1% or 2% will not help improve the fight against poverty, but will strike economic activity that isn’t in the best moment.