The minimum wage is a fundamental tool in the economy of many countries, as it ensures a baseline income for employees and helps reduce poverty and social inequalities. Additionally, the minimum wage enables businesses to operate within the law, ensuring compliance with labor regulations and protecting them from potential sanctions or legal conflicts related to employee compensation.

Currently, more than 90 countries around the world have legislation that sets a minimum wage, reflecting its importance in protecting labor rights. Countries like Chile, Mexico, and Argentina are examples in our region that regulate the minimum wage, as well as France, Germany, and Portugal, which adjust their minimum wage annually. This number can vary, as some countries adopt or amend such legislation based on factors like inflation, cost of living, labor productivity, and national economic conditions.

In Costa Rica, the National Wage Council  approved a general 2.37% increase in minimum wages, set to take effect on January 1, 2025. This increase will be mandatory for all individuals working in the private sector who earn a wage equal to the minimum salary. In addition to the general 2.37% increase, additional wage increases have been approved for two specific sectors:

• The minimum wage for domestic employees will see an additional increase of 2.33962%, resulting in a total increase of 4.70962%.
• The minimum wage for employees in generic specialized occupations, whose tasks are highly complex and require deep general knowledge in a specific area, will receive an additional increase of 0.5562880%, leading to a total increase of 2.926288%.

At Dentons, we are committed to providing you with expert advice and guidance, offering legal solutions to ensure compliance with the latest labor regulations in your business operations. We are also dedicated to helping you navigate global labor trends efficiently. If you need further information, please do not hesitate to contact us.

Authors: Anna Karina Jiménez, Adriana Fernández, Sebastián Rodríguez, and Alejandra Israel.