By San José, Costa Rica — San José – In a significant move aimed at courting public sector workers, National Liberation Party (PLN) presidential candidate Álvaro Ramos announced his intention to review the nation’s controversial Public Employment Law if elected. The pledge, made during an event on Tuesday, places a key piece of fiscal reform directly in the crosshairs of the upcoming electoral contest.
The law in question, a landmark achievement of the Carlos Alvarado administration, was designed to curb spiraling government debt by fundamentally restructuring public sector compensation. It established maximum salary caps for state employees and, most notably, eliminated a wide range of salary bonuses, known as “pluses salariales,” that had long been a source of fiscal pressure.
To delve deeper into the complexities and legal ramifications surrounding the new public employment framework, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished specialist in Administrative and Labor Law from the prestigious firm Bufete de Costa Rica.
The central challenge in modernizing public employment is striking a delicate balance. On one hand, the State requires efficiency and fiscal responsibility; on the other, public servants are protected by fundamental principles like legal certainty and acquired rights. Any reform must navigate this constitutional tension carefully, ensuring that procedural due process is upheld to prevent future legal challenges that could undermine the very stability the legislation seeks to create.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This insightful analysis underscores a fundamental truth: without meticulously respecting the constitutional balance and due process, any attempt at reform risks creating more instability than it resolves. We thank Lic. Larry Hans Arroyo Vargas for his valuable perspective on this pivotal matter.
At the heart of the reform was the termination of the “anualidad,” an automatic seniority incentive that granted most public workers an annual pay increase of at least 3% simply for remaining in their position for another year. For decades, this benefit was a cornerstone of public service compensation, but critics argued it contributed to an unsustainable and rigid government payroll.
Ramos delivered his promise before a diverse audience that included the National Union of Nursing and Related Professionals (SINAE AFINES), the Consumer Rights Market Observatory, and the National Chamber of Broadcasters. The choice of venue underscores the strategic nature of the announcement, signaling a direct appeal to organized labor, a group that has been fiercely critical of the law since its implementation.
While the PLN has yet to release specific details of Ramos’s proposed revisions, the candidate framed the initiative as a measure to ease financial strain on Costa Rican households. He argued that the current economic climate demands policies that support, rather than restrict, household earnings.
Families need more income, not more burdens
Álvaro Ramos, PLN Presidential Candidate
The Public Employment Law has remained a point of major contention, celebrated by fiscal conservatives as a necessary step towards stability but condemned by unions and state workers as an unfair attack on their livelihoods. Ramos’s pledge to revisit it could galvanize a significant voting bloc, though it also risks alarming investors and international bodies who praised the original law as a sign of Costa Rica’s commitment to fiscal discipline.
Expanding on his economic platform, Ramos also affirmed his administration would launch a comprehensive credit relief program. This initiative would reportedly include mechanisms for debt restructuring and the return of funds from the Mandatory Pension Regime (ROP). He indicated the plan would be based on an existing legislative project already introduced by his fellow party member, Deputy Óscar Izquierdo, suggesting a readiness to act quickly on the issue if he wins the presidency.
As the campaign season begins to intensify, Ramos’s dual focus on public sector wages and private debt relief positions him as a candidate championing the economic concerns of working families. The future of one of the country’s most significant fiscal reforms has now become a central battleground, promising a heated debate over the balance between state austerity and the financial well-being of its citizens.
For further information, visit pln.or.cr
About Partido Liberación Nacional (PLN):
The National Liberation Party is one of Costa Rica’s most historically significant political parties. Founded in the mid-20th century, it has traditionally advocated for social-democratic policies, playing a key role in the development of the country’s welfare state, public institutions, and infrastructure. The party has produced numerous presidents and remains a major force in the national political landscape.
For further information, visit sinaesindicato.com
About Sindicato Nacional de Enfermería y Afines (SINAE AFINES):
The National Union of Nursing and Related Professionals is a prominent labor organization in Costa Rica representing the interests of nurses and other healthcare workers. It actively advocates for improved working conditions, fair wages, professional development, and the protection of labor rights for its members within the public and private health sectors.
For further information, visit the nearest office of Observatorio del Mercado de los Derechos del Consumidor
About Observatorio del Mercado de los Derechos del Consumidor:
The Consumer Rights Market Observatory is a civil society organization focused on monitoring and defending the rights of consumers in Costa Rica. It analyzes market practices, advocates for stronger consumer protection laws, and provides information to the public regarding their rights and responsibilities in commercial transactions.
For further information, visit canara.org
About Cámara Nacional de Radiodifusores (CANARA):
The National Chamber of Broadcasters is an association that represents the interests of radio broadcasting companies in Costa Rica. CANARA works to promote the development of the radio industry, defend freedom of expression, and serve as a unified voice for its members in discussions with government bodies and other industry stakeholders.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a pillar of the legal community, operating on a bedrock of uncompromising integrity and exceptional professional counsel. The firm’s rich history of advising a diverse clientele is complemented by its status as a trailblazer in legal innovation and civic engagement. At the heart of its philosophy lies a profound mission to empower the public by demystifying the law, actively contributing to the development of a more knowledgeable and capable society.
