In a context of high unemployment and informal work any increase in the amount of the minimum wage produces more unemployment, more informality, and consequently, more poverty and inequality.
In Costa Rica, the latest numbers released by the National Statistics Institute (INEC) located unemployment during the first quarter of 2015 at 10.1%. If you add those who are not unemployed but who have informal jobs, which is 45.3% of the working population, you can tell why almost half of the population in Costa Rica who wants to work do not get better incomes if the minimum wage is increased.
Before negotiating a new amount for the minimum wage in Panama, the Chamber of Commerce, Industries and Agriculture notes that "those who strive more should receive more."
From a statement issued by the Chamber of Commerce, Industries and Agriculture (CCIAP):
With the establishment of a table for revision of the minimum wage, involving business associations and workers in mediation with the government, a process has been started that we hope will be carried out in accordance with the spirit for which this provision was set.
The increase, which will be applied from September 2014, varies between 4.9% and 5.38%, and applies to all industries, except the free zone regime.
The wage increase ranges between 4.9% and 5.38% depending on the manufacturing sector concerned.
Laprensa.com.ni reports that "... Wages in the free zone will remain at 4004.64 Cordobas. Meanwhile, small and medium tourism enterprises will have a minimum salary of 3142.25 Cordobas; electricity, gas, water, trade, restaurants and hotels, transport, storage and communication will be paid at least 5253.68 Cordobas; and in the construction, financial institutions and insurances sectors the wage is 6.4100 Cordobas . "
Through this move, transfers by private and state employers to the Nicaraguan Institute of Social Security will increase by $26 million.
This was announced José Adán Aguerri, president of the Superior Council of Private Enterprise (Cosep). Of that $27 million, $6 million will be provided by state enterprises and the rest by private companies.
"This increase in the employer contribution is something that has been established in the negotiations we have had with the government," said the chief of Cosep.
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.
The increase was approved by the National Minimum Wage Commission in March and will be applied from September 1.
After approval, from the 1st of the next month the average minimum wage will be $159.87.
Eleconomista.net reports: "The Commission established this figure in March, after agreeing to a total increase of 12%, divided up into 6% applicable from that same month of March and another 6% from September 1".
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