On July 1st came into force in Costa Rica, a salary increase for the private sector, of 2,35%, applicable for the second half of 2014 (The Decree No. 38520-MTSS was published in La Gaceta on July 15th).

The salary increase private sector was set by the Consejo Nacional de Salarios (National Wage Board) in favor of employees with minimum wages that work in private tasks related to agriculture, mine and quarry exploitation, manufacturing, construction, electricity, commerce, tourism, services, transportation and storage.

Besides the 2,35% increase that was applied to more than one million private employees, an additional adjustment of 4,22%, 4,09% and 4% (¢5.000 more) was approved for not qualified generic workers, semi qualified generic workers and qualified generic workers, respectively.

Penalties for the employer who does not abide by the salary increase for the private sector

As a law firm with expertise in Labor Law, ERP Lawyers & Associates want you to learn about the possible sanctions that an employer is exposed for not complying with the minimum wages law.

Once published in the official newspaper, the employer not only has the obligation to pay the increase to employees monthly, weekly, daily or hourly, but also has the obligation to report it to the Caja Costarricense de Seguro Social (Social Security Institution or CCSS).

The increase should be reflected at the time of making the report to the CCSS, because this is not only a matter of increasing the worker’s salary, discounting the 9.17%, but also there’s the obligation to notify the CCSS, otherwise the employer would be doing a wrongful retention of that 9,17%, explains Eduardo Rojas, founding partner and owner of ERP.

Also remember that the Ministerio de Trabajo (Ministry of Labor) is responsible for monitoring that the employers comply with the minimum wages. In case of breaking the law, the employer is exposed to a monetary penalty, according to what is said by the Ministry of Labor and Social Security.

Whoever does not pay the minimum wage is exposed to a fine between 1 to 23 base salaries, without the prejudice of the worker’s right to terminate the employment relationship with employer responsibility, previously depleting instances of direct solution with the employer or administrative conciliation, as appropriate.

Besides, the employee can denounce his/her employer and cause the closing of the business.

Private sector minimum wages for the second half of 2014:

Check the minimum salaries for each occupation

* Ordinary working day
** Monthly salary