The National Wage Council (CNS), in session on October 24, 2022, approved, by majority, the increase of the minimum wages in the private sector by 6.62%, effective January 1, 2023

The Minimum Wage Decree for the Private Sector is applicable to employees, regardless of the time they have worked for the company. Additionally, an increase of 2.34% will be granted for domestic service.

The employees who will benefit from this salary increase are:

• Those who belong to the private sector and currently receive the minimum wage, in accordance with their category.
• Those who have agreed with the company that the increase will be recognized, even if their salary is higher than the one decreed by law.

The minimum wage increase also means that the amount of non-garnishable salary will increase, therefore, the garnishment calculations must be adjusted.

The Employment, Labor, & Immigration practice area of Dentons Muñoz Costa Rica offers legal advice related to:

• Review of the applicable legal framework to determine the minimum wage corresponding to each type of worker.
• Prepare legal opinions regarding minimum wage issues, including issues of judicial wage garnishment orders.
• Practical and strategic advice to avoid future legal inconveniences.

Please contact us if you are interested in this matter and you need legal advice on Costa Rican Employment and Labor Law. We will be happy to help and guide you every step of the way.