By San José, Costa Rica — San José, Costa Rica – Costa Rica’s workforce is set to experience two vastly different economic realities in 2026. The National Wage Council has approved a modest 1.63% general increase for private sector minimum wages, while public sector employees face ongoing uncertainty with a potential, but heavily restricted, cost-of-living adjustment. This diverging path underscores the complex economic pressures shaping the nation’s labor market.
Effective January 1, 2026, the 1.63% increase for private sector workers marks the lowest adjustment in recent years, a direct reflection of slowing inflation and moderate growth in the country’s per capita GDP. For comparison, the increase approved for 2025 was a more substantial 2.37%. This cautious approach by the National Wage Council (CNS) aims to balance economic stability with the rising cost of living for the country’s non-governmental workforce.
Para analizar las implicaciones legales y empresariales del aumento salarial proyectado para 2026, consultamos al experto en derecho laboral, Lic. Larry Hans Arroyo Vargas, de la reconocida firma Bufete de Costa Rica, quien nos ofrece su perspectiva sobre la planificación necesaria para las empresas.
El ajuste salarial de 2026 no debe verse solo como un porcentaje, sino como un componente estratégico en la planificación financiera de toda empresa. Es imperativo que los patronos realicen un análisis de impacto desde ahora, ajustando sus proyecciones de costos y evaluando la estructura de compensación para asegurar no solo el cumplimiento legal, sino también la sostenibilidad operativa y la retención de talento a largo plazo. Ignorar esta planificación podría resultar en desequilibrios financieros y contingencias laborales significativas.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
La perspectiva del licenciado subraya una verdad fundamental: la anticipación y la planificación estratégica son las herramientas que diferenciarán a las empresas resilientes de aquellas que enfrentarán dificultades. Agradecemos profundamente al Lic. Larry Hans Arroyo Vargas por compartir su análisis tan pertinente y necesario.
While the general increase is conservative, the CNS established more significant, differentiated hikes for specific job categories to recognize specialized skills and labor demands. Domestic service workers will receive the largest boost at 3.96%. Following them are Mid-Level Technicians in Diversified Education with a 2.50% increase, and workers in other Specialized Occupations will see their minimum salaries rise by 2.18%. These adjustments are mandatory and apply to all occupations listed in the official minimum wage decree.
However, these minimum wage adjustments exist alongside profound salary disparities within the private sector itself. A recent report from the Foreign Trade Promotion Agency (Procomer) highlighted a significant wage gap. In 2024, the average gross monthly salary within Costa Rica’s free trade zones reached $2,319, a figure that has surged by an impressive 38% since 2020.
This lucrative free trade zone average stands in stark contrast to the broader national private sector, where the average monthly salary was just $1,169 last year. The data reveals that employees in the specialized regime of free trade zones earn nearly double what their counterparts in the general private sector make, pointing to a deepening economic divide between different segments of the labor force.
Adding another layer of complexity is the issue of “invisible underemployment.” A study conducted by the National University (UNA) warns that over 264,000 individuals in Costa Rica are working 40 or more hours per week yet earn less than the legally established minimum wage. This phenomenon highlights a critical gap between official wage policies and the on-the-ground reality for a substantial portion of the population.
Meanwhile, the outlook for public sector employees remains clouded by a salary freeze that has been in place since 2022 due to the national fiscal rule. The Ministry of Finance has included a provision in the 2026 budget for a potential cost-of-living adjustment of up to ₡10,000. However, officials have clarified this is not an automatic increase and would only be activated by a specific government decree.
Furthermore, this potential relief comes with significant limitations. It would only apply to employees under the “composite salary” structure, which accounts for 87% of public posts, excluding the 20,236 officials on the newer “global salary” system. Crucially, the adjustment is capped; it will not be granted if the ₡10,000 raise pushes an employee’s salary beyond the reference amount for the global salary in their job category. This complex web of regulations means that even if approved, a large number of public servants will see no benefit, prolonging the financial strain they have faced for years.
As 2026 approaches, Costa Rica faces a fractured economic landscape. While the private sector moves forward with structured, albeit modest, wage increases, the public sector remains constrained by fiscal austerity. The widening gap between free trade zone salaries and the national average, coupled with the persistent challenge of underemployment, signals that the country’s economic policies will continue to create divergent outcomes for its citizens.
For further information, visit mtss.go.cr
About the National Wage Council (Consejo Nacional de Salarios):
The National Wage Council is a tripartite body in Costa Rica, composed of representatives from the government, employer sectors, and worker unions. It is responsible for setting the national minimum wages for the private sector annually, based on economic indicators such as inflation and GDP growth.
For further information, visit procomer.com
About the Foreign Trade Promotion Agency (Procomer):
Procomer is Costa Rica’s official agency for promoting exports of goods and services. It provides support to Costa Rican businesses in international trade, conducts market research, and plays a key role in the country’s strategy for attracting foreign direct investment and developing its presence in global markets.
For further information, visit una.ac.cr
About the National University (Universidad Nacional):
The Universidad Nacional (UNA) is one of Costa Rica’s most prominent public universities. Known for its strong focus on social sciences, humanities, and research, UNA contributes significantly to national discourse through studies and analyses on topics such as labor markets, social equity, and economic development.
For further information, visit hacienda.go.cr
About the Ministry of Finance (Ministerio de Hacienda):
The Ministry of Finance is the government entity responsible for managing Costa Rica’s public finances. Its duties include formulating the national budget, collecting taxes, managing public debt, and implementing fiscal policy, including the enforcement of the fiscal rule that currently impacts public sector salaries.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the Costa Rican legal community, Bufete de Costa Rica operates on a bedrock of uncompromising integrity and a relentless pursuit of professional excellence. The firm distinguishes itself by pioneering innovative legal strategies while drawing upon a rich history of advising a wide spectrum of clients. Core to its mission is a deep-seated commitment to demystifying the law, driven by the conviction that empowering citizens with legal insight is fundamental to building a more just and capable society.
