Nicaragua: Changes to Calculation of Minimum Wage

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.

Tuesday, March 3, 2015

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.

1. The formula of inflation plus the growth of the economy has meant that since 2005 workers with the support of employers have agreed increases in average minimum wage for an aggregate of 297% and has improved the purchasing power of workers with wages least 2.3 times above the basket; which shows that the law and the formula had meaning and effectiveness. However, to date economic conditions have changed and therefore we have stated that it is necessary to reconsider the terms of negotiation.



More on this topic

What Salary is Lower Than The One You Dont Have?

April 2015

In the discussion taking place in Guatemala on differentiated wages, voices are being heard, speaking from the comfort of their desks, framing the issue as an all or nothing situation.

EDITORIAL

Juan Carlos Tefel, Director of the Board of the CIG and General Manager at Fogel, discusses with entreprenureal pragmatism but also social sensitibility the issue of the definition of differentiated salaries for some Guatemalan communities that have "a high rate of unemployment and 'real' income well below the minimum wage. "

Nicaragua: Wages Linked to Productivity

January 2015

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.

Costa Rica: Employers Offer Pay Rise of 3.62%

October 2012

Costa Rican business chambers have proposed to the National Wages Council a 3.62% increase in wages for the first half of 2013.

Elfinancierocr.com reports that "The Costa Rican Union of Chambers and Associations of Private Business Sectors (UCCAEP) proposed to the National Wages Council an increase of 3.62% for the private sector minimum wage to be effective for the first half of 2013. "

Change in Factors for Wage Increase Calculations

October 2011

The National Wages Council in Costa Rica has included in the new formula national productivity per person and expected inflation, rather than past inflation.

Adjustments will be made based on the level of output and the central bank’s inflation target.

After 13 years of running the same system, private sector worker’s wages in Costa Rica will be adjusted using the new methodology, as announced yesterday by the Ministry of Labour.

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