The National Salary Council unanimously approved the minimum wage increase for private sector employees, valid from January 1 onwards. The general increase percentage for 2020 is 2.53% and 2.33% for domestic service employees.

Likewise, this change means that, like every year, the salary that cannot be garnished increases.

The Minimum Wage Decree for the Private Sector applies to employees, regardless of how long they have been working for the company.

The employees who benefit from this salary increase are:

• Private sector employees who currently receive the minimum legal salary for their category.
• Employees who have an agreement with their employers to receive the minimum salary increase, even though their current salary is above the minimum legal amount.

Additionally, the National Salary Council approved, by majority, to equalize, throughout the next six years, the minimum wages per shift and per month for each of the different categories of workers: Non-Qualified, Semi-Qualified, Qualified and Specialized.

The increases will be progressive, beginning on July 2020, in addition to the annual increase approved for minimum wages in the private sector.

The Employment & Labor and Immigration Practice of Dentons Muñoz Costa Rica offers legal advice relating to:

• Legislation review: to determine which of the applicable minimum salaries correspond to which category of employees.
• Legal opinions: in reference to all minimum wage matters.
• Legal advice: to prevent future legal issues.

To obtain legal advice on this topic or any other topic regarding Costa Rican Labor and Employment, Human Resources, and Immigration Law, please do not hesitate to contact us.