The country's business sector proposes that elements such as productivity, economic growth and the level of formality be taken into account when calculating the minimum wage, instead of the decision only revolving around the basic basket variable.
The possible changes to the minimum wage in the country is an issue generating expectations among the different sectors, since in the next few days the National Salary Commission (CNS) will have to discuss the proposals to decide if it increases or decreases.
In the discussion that will begin in Guatemala on the minimum wage that will govern in 2020, the workers seek to unify their demands for an increase of between 10% and 20%.
In mid-September, the National Salary Commission (CNS) should receive the proposals from the different sectors of the workers, so that they can then be considered in the final decision.
From January 2017 an increase of 1.14% comes into effect for private sector wages in all categories included in the official decree.
The National Wages Council confirmed the government's proposal that the adjustment to be made from January 2017 will be 1.14% for wages of workers in the private sector.
Victor Ruiz, vice president of the Costa Rican Union of Chambers and Associations of Private Enterprise (Uccaep), explained that "...the percentage increase is obtained from the new wage adjustment methodology that employers have worked on together with the Government and the unions over the last three months."
Quarterly economic indicators of staff employed, wages and total revenue in the sectors of Manufacturing, Wholesale Trade, Retail, Hotels and Restaurants and Other Services.
From a report produced by the National Institute of Statistics and Census of Panama:
During the period covering January to December 2015, compared to the same period in 2014, the economic activities that showed increases in the average number of staff employed were: Manufacturing with 0.5%, Wholesale Trade 3.8%, and Retail with 2.8%. Hotels and Restaurants and Other Services decreased by 3.6 and 0.7%, respectively.
The private sector has highlighted the importance of adapting wages to productivity and merits of workers.
From a statement issued by the Chamber of Commerce, Industries and Agriculture of Panama:
We achieved consensus in the process of revising the minimum wage
This week the process begins to revise the minimum wage in Panama, a figure that between 2007 and 2015 had a cumulative increase of over 60%, making it today the highest in Latin America. This is in contrast to the lamentable position in which the country is placed in measurements in education, an issue that requires priority attention at all levels.
In Nicaragua the average wage grew by 3.8% in the first quarter of 2015: Low wages are a big advantage in attracting investments which drive economic development and increasing salaries...
The salary of formal workers in Nicaragua went from $312 in December 2014 to $324 in March this year, an average between the highest and lowest according to the economic sector concerned.
Product marketing companies are paying the highest average monthly salary, of $2,234, followed by those in the technology and communications sector, with $2,172, and thirdly, service companies, with $2,008.
A study by Talent Partner carried out for La Nacion indicates that in general "... a basic operator makes $715, while someone in a management position earns $5,800, as an average median of the amounts processed." In the case of a professional or analyst, the salary is $1,600, while for intermediate supervisors it is $2,400.
The business sector in Nicaragua has suggested that in addition to inflation and economic growth the level of productivity of workers should be taken into account when defining salary adjustments.
According to employers the current legislation has not been changed in 10 years, therefore the method for making adjustments to wages does not reflect the changes that have been experienced in the production structures in companies.
The Ministry of Labor has announced that as of January 1, 2015 a 5% increase in minimum wages in the productive sectors will come into force.
From a statement issued by the Government of Guatemala:
The Minister of Labour and Social Welfare (MTPS), Carlos Contreras, reported that the minimum wages for 2015, corresponding to agricultural, farm, maquila and non-agriculture sectors will increase by 5%, which is the third consecutive increase recorded during the administration of President Otto Perez Molina.
The categories with the largest increases in the rate of recruitment between January and March were the Retail Trade, Wholesale Trade, and Other Services.
Despite the economic slowdown, companies from various sectors are achieving good results and hiring more staff. In the first three months of the year the wholesale, retail and other services categories showed increases of 2.8%, 3.5% and 2.9% respectively compared to the same period in 2013.
The Union of Restaurants in Guatemala is opposed to the inclusion of the amount of tips on bills charged to customers.
The position of the Tax Administration to include gratuities within bills has generated the discontent of the Union of Guatemalan Restaurants (Gregua). The Guild has filed a constitutional complaint against it, but nothing has yet been resolved regarding the matter.
Performance bonuses and other variable compensation schemes weigh increasingly on the total compensation of senior managers.
In order to motivate and retain executives companies are tending more and more to compensate their executives with salary schemes where the variable proportion and that dependent on performance is increasing.
Paying with company stock, profit sharing from stocks or performance bonuses are some of the payment methods being used by companies for senior managers, as detailed in a report by consulting firm PriceWaterhouseCoopers.
Without contradicting the provisions of law which state that tipping must be voluntary, the regulation approves phrases which suggest the possibility of the amount which can be paid and including it in the bill.
This is how it is described in the regulation of the Law on protection of the rights of consumers and users, published last week in the newspaper La Gaceta.
While the unemployment rate remains the lowest in Latin America, an even greater level of preparedness of the workforce is needed to achieve dynamic and sustainable growth.
According to an article in Capital.com.pa the rate of employment growth is no longer parallel to economic growth, noting that "According to official figures, between March 2012 and March 2013 there was a decrease in the labour force of nearly 7,000 jobs. "
From October 11th tipping in restaurants and other service establishments will be voluntary and will not be included in the calculation of the bill.
This was explained Orlando Solorzano, Minister of Development, Industry and Trade (Mific). "On that date, the Law on Protection of the Rights of Consumers and Users comes into force, which contains an article which prohibits service providers from including the gratuity in the price and in the calculation of the bill, or any allusion to the same," reported Elnuevodiario.com.ni.