El Salvador: Controversial wage Increase

The approved increase to the minimum wage, granted without the support of the business sector, will come into effect in January 2017.

Thursday, December 15, 2016

The change to the minimum wage approved by the government includes unions of public institutions that do not receive the minimum wage.

The increase was approved in the National Minimum Wage Council, "... for three and two government representatives of the labor sector (newly sworn in last week). The two private sector representatives were not sworn into office and therefore did not participate in the Council meeting. Both said they disagreed with the process of selecting members of the labor sector on the grounds that the Labor Minister Sandra Guevara, changed the legal instructions to include unions that do not represent unions in the private sector."

Elsalvador.com reports that "...Employers are opposed to this agreement because they believe representatives have a clear political trend and because the entire process for selection violates the Labour Code and agreements with the International Labour Organization. Besides, it had an agreement since June and the minister did not want it to be applied. Entrepreneurs say the minister only wanted to include unions of her party in order to reintroduce her proposal on pay."

Days ago the private sector issued a warning on this subject, and called for companies to be "alert to any arbitrary and autocratic decision on increase of salaries by the National Minimum Wage Council."

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More on this topic

Never-ending Struggle for Minimum Wage

January 2019

The determination of how much and how the minimum wage should be regulated, something that occasionally seems to be done in an arbitrary manner and for political purposes, continues to be one of the factors that most confront Central American businessmen and governments.

In Costa Rica, a 3% increase in the minimum wage was approved for 2019; in El Salvador, an increase is expected to be discussed, and in Guatemala, the commission in charge of the issue reported that no increases will be made this year.

El Salvador: Government Maneuver to Increase Wages

December 2016

The private chamber of companies advise to be "alert to any arbitrary and autocratic decision regarding salary increases by the National Minimum Wage Council."

From a statement issued by the Chamber of Commerce and Industry of El Salvador:

Nicaragua: No Deal on Minimum Wage

March 2014

The Ministry of Labor will define the wage adjustment in the absence of an agreement between the private sector and trade unions.

In the last meeting on 13 March the parties were not able to reach an agreement. The private company proposed an increase of 9%, while unions demanded an adjustment of between 10% and 14%.

Costa Rica: 3% Increase for Private Sector Wages

June 2012

Government representatives and workers approved the salary increase in the National Wages Council, to the dissent of the employers' delegates.

Starting on the first of July, private sector employees who receive the minimum wage will get an increase of 3%.

Employer sector representatives did not support the increase, which differs from their proposal of 2.47%.

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