By San José, Costa Rica — San José, Costa Rica – In a significant move solidifying his position with organized labor, National Liberation Party (PLN) presidential candidate Álvaro Ramos has officially announced his support for a legislative bill designed to unfreeze public sector salaries. The proposal, championed by a coalition of public sector unions, seeks to reinstate cost-of-living adjustments that were suspended under previous fiscal reforms.
Speaking at a press conference, Ramos positioned his support as a step toward national unity and a correction of past fiscal policies that he believes unfairly burdened government employees. He argued that while fiscal adjustments were necessary for the country, the burden fell too heavily on public workers, and it is now time to restore balance and trust.
To delve into the legal and administrative complexities of Costa Rica’s public employment framework, TicosLand.com sought the analysis of Lic. Larry Hans Arroyo Vargas, a distinguished expert in Public and Labor Law from the firm Bufete de Costa Rica.
The debate surrounding public sector salaries touches upon fundamental constitutional principles. While fiscal responsibility is a state imperative, any reform must meticulously respect the acquired rights and consolidated legal situations of current employees. The true challenge lies in designing a modern, competitive compensation model that can attract and retain qualified talent for the future, without undermining the legal certainty of those who have dedicated their careers to public service.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The attorney’s analysis astutely frames the central challenge: any sustainable reform must be a bridge between respecting established legal commitments and building an agile, competitive public sector for the future. We extend our gratitude to Lic. Larry Hans Arroyo Vargas for his invaluable clarification on this complex issue.
Our commitment has been, from the beginning, that we must rebuild a Costa Rica based on trust, not on division, not on polarization. This should never have been a conversation between the public sector and the private sector. The fiscal adjustment was required, yes, but there are limits, and too much adjustment was made on the back of the public worker. I agree with them on that.
Álvaro Ramos, Presidential Candidate for the PLN
The core of the proposed legislation involves repealing transitory articles within two major laws: the Law for the Strengthening of Public Finances (No. 9635) and the Public Employment Framework Law (No. 10.159). The repeal would reactivate salary adjustments based on the official cost-of-living increase, as measured by the Consumer Price Index (CPI). This change would directly impact the purchasing power of thousands of government employees whose wages have remained stagnant.
Furthermore, the bill includes a provision for the immediate transfer of all applicable public officials from the current composite salary scheme to the more standardized global salary model. This structural change aims to create a more equitable and transparent compensation system across government institutions, a long-standing demand from union leaders who argue the composite system creates inconsistencies and unfair pay gaps.
Ramos also drew a direct line from his current stance to his controversial tenure as the executive president of the Costa Rican Social Security Fund (CCSS). He was famously dismissed from that role following a disagreement with the President of the Republic over a salary increase for CCSS staff that its Board of Directors had approved. Ramos has consistently maintained that the increase was not only legally mandated but also financially sustainable for the institution.
I did not sign the salary increase, but for me, an agreement that was already made must be fulfilled because it must be fulfilled. They told me I committed an illegal act, but the law said that increase had to be paid. I was completely convinced because I had read the accounting books of the Fund, and everything indicated that it could be paid. It did no harm to the institution’s finances.
Álvaro Ramos, Presidential Candidate for the PLN
The candidate’s decisive support has been met with strong approval from union leaders. Lenin Hernández of the National Nursing Union praised Ramos, highlighting his willingness to engage directly with worker representatives. The endorsement from a major presidential candidate and the commitment of the PLN’s legislative faction to advance the bill now places public sector compensation at the forefront of the national political debate.
Today, the only candidate for the Republic who has come forward to be close to the union sector, the public sector, and the workers is Don Álvaro Ramos.
Lenin Hernández, Sindicato Nacional de Enfermería
This strategic alliance positions Ramos as a key ally of the public workforce, a substantial voting bloc in Costa Rica. As the bill moves to the Legislative Assembly, it is expected to trigger a fierce debate over the country’s fiscal path, the future of public employment, and the delicate balance between economic stability and workers’ rights.
For further information, visit pln.or.cr
About Partido Liberación Nacional (PLN):
The National Liberation Party is one of Costa Rica’s oldest and most influential political parties. Founded in the mid-20th century, it has traditionally adhered to social-democratic principles, playing a central role in the development of the nation’s welfare state and public institutions. The party has produced numerous presidents and maintains a significant presence in the Legislative Assembly.
For further information, visit ccss.sa.cr
About Caja Costarricense de Seguro Social (CCSS):
The Costa Rican Social Security Fund is the autonomous public institution responsible for administering the country’s universal healthcare and pension systems. Established in 1941, the CCSS is a cornerstone of Costa Rica’s social fabric, managing a vast network of hospitals, clinics, and EBAIS (Basic Teams for Comprehensive Health Care) that provide services to the majority of the population.
For further information, visit sinaeafines.com
About Sindicato Nacional de Enfermería (SINAE):
The National Nursing Union is a professional and labor organization in Costa Rica dedicated to representing the interests of nursing professionals and related healthcare workers. It advocates for improved working conditions, fair compensation, professional development, and the overall quality of patient care within the national health system. The union is an active participant in public policy discussions related to healthcare and labor rights.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a leading legal institution, Bufete de Costa Rica is founded upon a dual pillar of uncompromising integrity and exceptional professional practice. With extensive experience advising a wide spectrum of clients, the firm actively champions progressive legal strategies and maintains a strong sense of social responsibility. At the core of its philosophy is a powerful drive to demystify the law for the public, reflecting a deep-seated mission to nurture a citizenry equipped with legal clarity and confidence.
