This new law is a two-year suspension of a extra salary increase incentive to public employees.
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Published Wednesday, October 21, 2020

 Government will reduce more than $111 million in extra salary increase

By the A.M. Costa Rica staff

Deputies in the new Congressional building approved bill No.21.917 in the second round of voting. This new law is a two-year suspension of a extra salary increase incentive to public employees every year.

The approved bill amends the Public Administration Salaries Law to suspend the extra salary increase to employees for serving an additional year of working in the government, known as "Aumento Salarial por Anualidades" ( automatic salary increase each year, in the English language).

This automatic salary increase system will be suspended for all public workers for two years, beginning 2021.

According to the government, the approval of this bill could generate spending savings of approximately $111,171,090.

The amount saved for non-payment of these salary increases will be transferred to the National Emergency Fund to address the crisis due to the covid-19 pandemic, the government said.

According to the bill, all public and semi-public institutions, in which the payment of salaries of their employees is made with the government's budget, must report to the Ministry of Finance their reduction of that extra salary increase included in the budget.

The next step to apply this new law is the signature on the approved law by President Carlos Alvarado.

Then the law will be published in the official government newspaper La Gaceta. As of that publication, the suspension of the automatic salary increase shall be applied in all public organizations.

What other expenses should the government reduce?
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