Review your payroll: Costa Rica has raised the minimum wage

On July 2, the Ministry of Employment and Social Security of Costa Rica announced that the national minimum wage will be 0,94% higher from July to December 2015.

According to Executive Order 39055, the legal minimum wage applicable to all private sector companies from the second half of this this year will see an increase of 0.94%, based on the salary earned from January to June 2015. In regards to domestic services, wages have increased by 1.04%. These increases will take effect from July to December 2015.

The increase applies to all workers, regardless of how long they have worked for the company. Also, it applies to all workers who agreed to receive a raise based on what was decreed by law.

Private companies must conduct the review of wage increases applicable to this half of the year immediately.

According to agreements between Costa Rica’s administration and the labour unions – established in 2007 and ratified in 2012 – in Costa Rica, the minimum wages are raised every 6 months, for both private and public companies. The percentage is fixed according to the cumulative inflation.

How can TMF Group help? 

TMF Group in Costa Rica has the local knowledge to understand and adapt to new changes and labour regulations, such as decrees on salary raises. TMF Group can also help companies with their payroll and human resources administrative duties and with the mitigation of risks in order to avoid penalties for failure of implementation or incorrect or late implementation of the regulatory changes.

TMF Group was listed as “Major Contender” by Everest Group Research in its Multi-Country Payroll Outsourcing (MCPO) PEAK Matrix 2015.

Learn more about how we can help you with your payroll administration

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