Arguing that the economic and social effects of the covid-19 pandemic in the country have been considerable, the local authorities decided that during 2021 the minimum wage will not be increased.
In no case will workers be able to have a salary lower than that set in Governmental Agreement 250-2020, which goes into effect as of January 1, 2021, the statement from the Ministry of Labor and Social Security points out.
For workers in non-agricultural, maquila and export activities, the minimum wage will increase by 3% this year in relation to what was paid in 2019.
Government agreement 320-2019, published in Diario de Centroamérica on December 30, 2019, specifies that the minimum monthly wage for agricultural activities will remain unchanged for the second consecutive year, and will continue at $388.12.
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.
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.
For agricultural businessmen, the proposal to change the minimum wage discussed nationwide jeopardizes the jobs and incomes of about 500,000 people working in agriculture.
A savings fund, housing loans, expenses for recreation and bonuses, scholarships for children, and restaurant services for employees of the state and the monopolist hydrocarbons distributor of Costa Rica, are financed through the prices paid by consumers, even by the poorest.
Starting from January 1, 2017 new rules are in effect which govern minimum wages for agricultural, non-agricultural, export and maquia activities.
Government Agreement 288-2016 published in Diario de Centroamérica:
Article 2.Minimum wage for agricultural activities.For agricultural activitiesthe minimum wage is set at the sum of EIGHT Y SIX QUETZALES AND NINETY CENTS (Q.86.90) DAILY equivalent to TEN QUETZALESAND EIGHTY-SIX CENTS (Q. 10.86) per hour in the daytime in an ordinary work shift or what is proportional to mixed or night shifts, these wages will apply from 1 January of the year two thousand and seventeen.
Memorandum on minimum wages and payment schedule for tax liabilities for December 2016.
From a Memorandum sent by Tezó and Associates:
On 30 December 2016 the Ministry of Labour and Social Welfare published in the newspaper Diario de Centro América Governmental Agreement No. 288-2016, through which the new minimum wages are established for agricultural activities, non-agricultural activities, exports and maquilas, with effect from 1 January 2017.
One bright spring morning a garden flourished gloriously and everybody wanted flowers. John said "I deserve 10" and the gardener gave him 10 flowers. "I want to take 11" said Peter, and 11 were handed over to him. "I demand 12" protested Manuel, and he got 12. "I want 13" shouted Joseph, and he received his 13 flowers. A lot of people called out their demands and got what they asked for. In the end there was only one somewhat wilted flower left that was given to a mute person with no name. And the gardener was acclaimed for his generosity.
But the following spring the garden produced much fewer flowers, in spite of this, John tried to take his 10, Peter his 11, Manuel his 12 and Joseph his 13 flowers. "That is what corresponds to us," they shouted. "It is our right" they claimed. And they hired a lawyer who filed a lawsuit to force the gardener to deliver what belonged to them by "acquired right". And the judge, who was Manuel, ruled in favor of the plaintiffs.
Using its corporate power and taking advantage of the power vacuum that is afflicting the State, a public university in Costa Rica is paying first world salaries, exacerbating the inequality that exists between Costa Ricans and severely distorting the labor market.
EDITORIAL
The degeneration of democracy which is happening in a lot of Latin American countries has Costa Rica as an example, a country which historically used to be a shining example of the best way to live in society.
After the government repealed differentiated wages, the Guatemalan business sector will be proposing new options such as work paid by the hour and other initiatives to promote investment and employment.
Entrepreneurs will not stand idly by and will be proposing new alternatives for flexible working hours and wage schemes to improve conditions and attract more investment to the country, especially in areas far from the capital.
Bowing to pressure from those who can choose what to eat every day, the Morales administration has repealed the differentiated minimum wage, denying the right to choose how to live to those who do not have that option.
EDITORIAL
President Morales has put an end to an initiative that aimed to attract investment to four municipalities by applying differentiated minimum wages, yielding to the the high profile power of those who, from the comfort of a heated office and while receiving thousands of dollars in salaries each month, feel that it is reasonable remove the possibility of having a job from those who have nothing.
The Constitutional Court has temporarily suspended the authorization given by the Executive Branch to award differential minimum wages in four municipalities.
Despite being a measure requested by the local authorities themselves in order to attract investment and create jobs, the Constitutional Court has decided to temporarily suspend the authorization that was granted by President Maldonado.
From the comfort of a heated office and after receiving thousands of dollars in salary at the end of every month, well-intentioned people are trying to take away from those who have nothing, the possibility of having a job.
EDITORIAL
The indispensable struggle for the dignity in jobs and the eradication of slavery of the people living under a wild form of capitalism, has led to the introduction of minimum wages in modern societies.
The rise is 4% for workers in the agriculture and non-agriculture category, and 3.5% for the export and maquila sectors, and will be effective from January 1, 2016.
From January 1st, the minimum wage will increase by 4% for workers in agriculture and non-agriculture sector, and 3.5% for workers in the export and maquila sector, according to Government Agreement 303-2015, which was published in the official newspaper.