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



1995

January 1 - August 9

Increases of                       5.71%       "Coyol" harvesters

10.00%        all other activities

August 10 - December 31

Increases from 5.70% to 12.83%. Average increase was 9.69%_____________

1996

January 1 - July 4

jujɪɪ^eoemberj^^^^

Increases from 38.08% to 17.78%. Average increase was 8.35%.

^Jncreasesfrom^54%Jo^95%^verac|ejncrease^as^05^^^^^^^^^

1997

The major industry categories were combined into one that specifically
includes agriculture, mining, manufacturing, construction, commerce, tourism,
services, transport, and warehousing. Within this combined category four
minimum wages are set, for unskilled workers, semi-skilled workers, skilled
workers and specialized workers (supervisors.) Two other major categories
remained: professionals and "specials." "Specials" included a minimum wage
for domestic servants. Within the professionals category a minimum wage
was added for workers with a 4-year university degree. These changes
resulted in only 19 different minimum wages being set in 1997.

January 1 - July 4

Increases from 38.08% to 17.78%. Average increase was 8.35%.

Juj2^^ecemberJ^^^

^^^ncreasesfrom^54%Jo^95%^verac|ejncrease^as^05^^^^^^^^^

1998

January 1 - June 30

Increases from 7.00% to 7.14%. Average increase was 7.02%.

Juj2^^ecemberj^^_

^^^ncreasesfrom^52%jo^67%^veracejncrease^a≡^52^^^^^^^^^

1999

January 1 - June 30

Increases from 6.49% to 6.58%. Average increase was 6.43%.

Jly^-December3^^^

^^lncreasesfrom4.57%to4.59%.Averaaeincreasewas4.58^^^^^^^^^_

Sources: Ministry of Labor and Social Security, National Salary Council, Department of Salaries,
and interviews with Jose Pablo Carvajal (Director, National Salary Council), July 14, 2003
and Orlando Garcia (Planning Directorate, Ministry of Labor), July 15, 2003.

26



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