For this year 2019 and by Decree No. 41434-MTSS published in the Official Gazette, it is established that, starting on January 1 and in force for one year, the private sector will have a salary increase of 2.96%, being of mandatory application for all the minimum wages that the decree establishes or for those that by practice and right has been acquired. Additionally, the increase for domestic workers is 3.50%.

The main increases in wages can be observed divided into three categories:

a. By ordinary working day:

Workers in Non-Qualified Employment        ¢10,358.55
Semi-Skilled Occupation Workers                  ¢11,264.17
Workers in Skilled Employment                      ¢11,471.53
Workers in Special Occupation                        ¢13,530.38

b. Generic occupations per month:

Workers in Non-Qualified Occupation                             ¢309,143.36

Semi-skilled Occupation Workers                                     ¢332,589.87
Skilled Occupation Workers                                               ¢349,623.39

Workers in Special Occupation                                         ¢392,623.14

Diversified Education Media Technicians                       ¢366,380.40

Higher Education Technicians                                          ¢451,523.54

Graduates of Higher Education                                        ¢487,662.29

University Bachelors                                                           ¢553,124.45

University Graduates                                                          ¢663,772.10

c. Relating to specific fixations:

Coffee pickers (by trunk)                                                    ¢986.27

Domestic service (per month)                                           ¢190,377.39

Workers of higher specialization1                                     ¢20,997.77

Journalists hired as such (includes 23% due to availability) (per month) ¢817,500.00

Stevedores per kilo of fruits and vegetables                   ¢0.0711

Stevedores per ton                                                               ¢88.00

Stevedores by movement                                                   ¢375.28  

As dictated by Article 7— on Regulation of payment methods: if the salary is paid per week, it must be paid for 6 days, except if the work is carried out in the commercial premises, which is paid for 7 days a week, in accordance with article 152 of the Labor Code. If the salary is paid per fortnight, it includes the payment of 15 days, or if the salary is paid per month it includes the payment of 30 days, regardless of the activity in question.

The wages included on a monthly basis in this Decree, indicate the total amount that the worker must receive; if paid weekly, as long as the activity is not commercial, the monthly salary must be divided by 26 and multiplied by the days actually worked. In the case of the salary of the employees who receive commission, the employer may pay the base salary x plus the commission, and between the two they must add at least the minimum salary established in the Decree of Minimum Salaries, so that if the salary that the commission is paid more, the minimum wage established by law is not reached, the employer must legally adjust to the minimum wage; This is established by the Labor Code in its articles 164 and 168.

In the case of night or mixed working hours, the corresponding equivalences will be made, an effect, that wages will always be equal for the respective ordinary working hours. In the event that the worker’s salary is above the minimum wage, it is not the obligation of the employer to make the salary increase, unless there is an agreement, collective agreement, direct arrangement, custom or any other normative instrument that thus establish it. The employee or company that does not pay the minimum wage is exposed to a fine of 1 to 23 base wages, without prejudice to the right of the worker to terminate the employment relationship with employer responsibility, previously exhausting the instances of direct solution with the employed person or the administrative conciliation, as appropriate.

If you need any help or just seek for advise, feel free to get in touch, we are here to help!  https://erplawyers.net/en/contact-us/