If your business currently either employs personnel on a minimum wage basis or has labor agreements that establish an increase in the national minimum wage, you should be aware of recent events. The National Board of Salaries approved both an increase of 0.5% in minimum wages for private sector employees, in all employment categories, and an increase of 2% for those employees in domestic service.
The employees who benefit from this pay rise are:
- Employees who currently receive the minimum legal wage in their category.
- Employees who have an agreement with their employers to receive any new minimum wage increase, even though their current wage is already above the minimum legal amount.
The Labor Minister represented the Government sector that unanimously approved this percentage increase. Additionally, he stated that the Government will also evaluate the formula used to calculate wage increases.
With this pay-rise workers who are already receiving the minimum legal wage in their category will now earn an extra ¢500 for every ¢100,000 of wages. Domestic service workers will earn an extra ¢2,000 for every ¢100,000 of salary.
This increase is effective as of July 1, 2016 and applies to all employees, as explained above, regardless of how long they have been working for the company.