El Salvador: Government Maneuver to Increase Wages

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

Thursday, December 8, 2016

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

After the obvious manipulation on the part of the government in the process of forming the new National Minimum Wage Council (CSNM), the Chamber of Commerce and Industry of El Salvador is calling on the private sector in general, but most particularly on micro, small and medium sized businesses, to be alert to any arbitrary and autocratic decision on wage increases that may arise from the panel in the coming days.

Permission has been given for participation in the new National Minimum Wage Council of representatives of public sector unions sympathetic to the FMLN government, which not only distorts the nature of the Council but violates the Labour Code, violates conventions of the International Organization Labour of which El Salvador is a signatory and rides roughshod over the rules of procedure of the CNSM itself.

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.

Costa Rica: Minimum Wage Increases 3%

October 2018

The increase will apply to the private sector from January 1st, 2019, and will continue throughout the year, applying to all salary categories.

The representatives of the National Wage Council reported that after analyzing the proposals presented, the minimum wage adjustment was unanimously approved on October 24th.

El Salvador: Controversial wage Increase

December 2016

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

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

Nicaragua: Changes to Calculation of Minimum Wage

March 2015

The private sector has rejected the methodology used by the government to establish the increase for this year and presented a proposal to make adjustments in the future.

From a statement issued by the Superior Council of Private Enterprise (COSEP):

The Superior Council of Private Enterprise (COSEP) in light of the unsuccessful negotiations in the National Minimum Wage Commission to reach a tripartite agreement and the political decision of the government through the Ministry of Labour (MITRAB), to approve the minimum wage unilaterally, which is in effect for all economic sectors of the country from March 1 this year, wishes to express the union position on this.

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