Legal Minimum Wages and the Wages of Formal and Informal Sector Workers in Costa Rica

______________________________M.W. From_______To______Raise__________________________

1987

Over 500 different minimum wage categories within 10 major industry
categories (agriculture, mining, manufacturing, construction, electricity,
commerce, transportation, communications, services, and professionals.) The
professional category includes a minimum wage for anyone with a
"licenciado," a 5-year university degree (more common that a 4-year
bachelors degree.) The other professional minimum wages are for specific
professions (and not for anyone with a 2-year or 4-year degree).

January 1 - August 29

M.W. From    To_  Raise _______

.....¢0.00' '¢267.00 ''   9.00%   ............

¢267.05   ¢307.80     7.50%

¢307.85   ¢344.50     5.50%

More than ¢344.5                 3.50%

August 30 - D^ecember 31

¢312-80     0o^oo'     400%

¢312.85   ¢322.90      3.00%

More than ¢322.95________________2.50%______________________________

1988

Beginning in 1988 the Ministry of Labor began a gradual process of reducing
the number of minimum wage categories. To do this, the Ministry identified
two or more categories that were to be combined and increased the minimum
wage in the category with the lowest minimum wage by a greater amount than
the minimum wage in the higher wage category. In this way, over a period of
several years, the minimum wage for these categories would become the
same. Therefore, for each category in each year minimum wages are
increased by different amounts.

January 1 - August 15

As part of the process of gradually consolidating minimum wage categories,
for each category minimum wages were increased by different absolute
amounts: the range is 3.5-15.0%. The average increase was 11.0%

August 16 - D^ecember 31

Increases of 8.85% for the lowest salaries down to 2.3% for the highest
salaries, with exception for domestic servants (9.16%). Average increase
5.64%._______________________________________________________________

1989

January 1 - September 16

Increases from 4.76% to 16.81%. Average increase was 12.16%.

September 17 - December 3l

Increases from 3.41% to 8.88%. Average increase was 6.41%

1990

The major industry categories of manufacturing, mining, electricity and
construction were combined. The number of minimum wage categories is
reduced to 60-70. Consolidation of categories continues.

January 1 - July 31

Increases from 3.14% to 25.29%. Average increase was 9.91%.

August 1 - December 31_____

Increases from 9.79% to 16.35%. Average increase was 13.47%____________

1991

January 1 - June 23

Increases from 2.11% to 15.67%. Average increase was 9.86%.

June 23 - December 31______

Increases from 5.03% to 17.3%. Average increase was 10.51%_____________

1992

January 1 - July 1

Increases from 4% to 26.69%. Average increase was 11.38%.

July 2 - December 31

Increases from 12.02% to 13.89%. Average increase was 13.73%.

Exceptions: Domestic Servants, 18.72%, Private Accountants, 37.38% and
Journalists, 39.58%.

1993

Several categories are added for those with higher education. In addition to
the already existing minimum wage for "licenciados," legal minimum wages
are now set for those with 2-3 years of university education ("diplomados" or
"tecnicos") and for graduates of 5-year technical high schools.

January 1 - July 26

Increases from 4.88% to 14.58%. Average increase was 5.07%.

July 27 - December 31

Increases from 4.65% to 6.37%. Average increase was 5.02%______________

1994

January 1 - July 30

Increases of                        8.00%           Agriculture

_____________________________________________9.00%___________Other Activities___________

July 31 - December 31

Increases of                         9.00% Unskilled ag. labor in Palm Oil

10.00%          Bus Drivers

42.86%       "Coyol" harvesters

8.00%        All other activities