Nicaragua: Minimum Wage Unchanged

Nicaraguan authorities and workers' unions decided not to make changes to the minimum wage, so it will be until 2020 when the issue is discussed again.

Friday, August 30, 2019

Days ago there was tension over the possible increase to the minimum wage in a context of economic recession, but finally the negotiating table decided not to make any change.

You may be interested in "Tax and Minimum Wage Tension

Alba Luz Torres, head of the Ministry of Labor, explained to Laprensa.com.ni that "... such a measure will keep employment stable and for the decision was taken into account the behavior of inflation and variables related to economic growth."

Luis Murillo pointed out that "... although this measure is cautious, taking into account the economic contraction, this will not mean that it will not have an impact on households, which have seen their purchasing power quickly decline. At the end of the day, the most affected are the most vulnerable... it is practically a deterioration in the standard of living of the population and a setback in economic development, because you are condemning people to lower consumption, because prices have risen and wages have remained static, so what families are going to prioritize is basic consumption spending."

The position of the Nicaraguan Foundation for Economic and Social Development (Funides) is that a wage increase will put more pressure on the economy and could generate more unemployment.

After this decision, the issue will return to the debate at the beginning of next year, when it will be discussed again whether or not to apply a rise.

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In a context of a sharp drop in economic activity, the government decided to increase the minimum wage by 2.63% as of 1 March.

The increase, which was agreed by the Ministry of Labor and which will affect ten economic activities, was endorsed by the authorities on 6 February. Workers in free zones will be the only ones not to be subject to this increase, since wages in this sector were raised at the beginning of the year.

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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.

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Dominican Republic: 14% Increase in Minimum Wage

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The National Wage Committee approved a 14% wage increase for non-sectorized private workers, which will come into effect next August.

The authorities also reported that they have declared themselves in permanent session to start work on reclassifying companies or updating thresholds.

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.

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