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.

About Dentons

Dentons is the world's first polycentric global law firm. A top 20 firm on the Acritas 2015 Global Elite Brand Index, the Firm is committed to challenging the status quo in delivering consistent and uncompromising quality and value in new and inventive ways. Driven to provide clients a competitive edge, and connected to the communities where its clients want to do business, Dentons knows that understanding local cultures is crucial to successfully completing a deal, resolving a dispute or solving a business challenge. Now the world's largest law firm, Dentons' global team builds agile, tailored solutions to meet the local, national and global needs of private and public clients of any size in more than 125 locations serving 50-plus countries. www.dentons.com.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.