Saturday 31 October 2009
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Minimum Wage Increase "Not Enough"

The minimum salary increase of 5% that takes effect on January 1 is being criticized, many say it is not enough to face even the basic increases in services like electricity.

The government announced earlier this week that minimum salaries for the private sector would increase by 5%, on the average earnings of ¢314.939 (us$540) monthly, according to figures provided by the Cámara de Industrias and using the contributions of the Caja Costarricense de Seguro Social (CCSS) as a reference.

The 5% represents an increase of ¢15.746 colones monthly on the average.

José Salas, advisor to the Cámara de Industrias said the average electrical bill is ¢16.400, so the increase doesn't even cover the cost of paying the utility bill.

The same can be applied to costs like water and cellular telephone, which combined have an average cost of ¢18.000 colones monthly (¢7.000 for water and ¢11.000 for cellular phone service).

On the other side of the argument are the employers, who say for every percentage point increase it means a drastic increase in payroll.

A bulletin by the Unión Costarricense de Cámaras y Asociaciones de la Empresa Privada (Uccaep) says that if the ¢15.746 are wisely spent they can buy a one litre carton of orange juice, a litre of milk, detergent, cooking oil, a kilogram of eggs, half a kilo of cheese, four tuna cans, half a kilo of meat, two bags of rice, a head of lettuce, a kilo of tomato, a kilo of green beans, a box of cookies and a kilo of potatoes.

However, a number of people interviewed by the local print media responded with a common tone, "it is not enough".
 





 
 

 

 


 
 
 
 

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