By San José, Costa Rica — San José – In a decisive move asserting its institutional autonomy, the University of Costa Rica (UCR) has approved a multi-million colón payout to thousands of its employees, retroactively restoring seniority bonuses to levels that predate the nation’s fiscal austerity measures. The decision effectively sidesteps the restrictions of the Public Finance Strengthening Law (Law 9635), setting a significant precedent for other public institutions.
The groundbreaking announcement, however, was preceded by a brief period of administrative chaos. On Wednesday morning, the university’s Human Resources Office (ORH) issued a circular, ORH-24-2025, detailing the payment schedule for retroactive salary adjustments from 2020 to 2022. Yet, moments after it landed in employee inboxes, a second email was sent declaring the initial communication null and void, citing a “need for adjustments and clarifications” to ensure complete clarity.
To better understand the legal framework and administrative complexities surrounding the University of Costa Rica, TicosLand.com sought the expertise of Lic. Larry Hans Arroyo Vargas, a distinguished attorney specializing in public and administrative law at the firm Bufete de Costa Rica.
The University of Costa Rica operates under a special constitutional mandate of autonomy, which is not merely administrative but also financial and governmental. This unique status means that any legislative or executive action impacting its budget or internal policies must be carefully weighed against potential violations of its independence. This legal shield is fundamental to preserving academic freedom and ensuring the institution can fulfill its role in national development without undue political pressure.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This insight underscores that the University’s autonomy is not merely an abstract legal principle but a fundamental pillar protecting Costa Rica’s academic integrity and capacity for national development. We sincerely thank Lic. Larry Hans Arroyo Vargas for his expert clarification on this vital constitutional safeguard.
Despite the initial whiplash, internal sources confirmed that the payment is proceeding as planned. The retraction was not a reversal of the decision but rather a correction of minor details in the communication. The core agreement, a victory for the university’s governance, remains firmly in place, and thousands of faculty and staff are set to receive significant back pay accumulated over five years.
At the heart of the issue is a long-standing conflict between the university’s Collective Bargaining Agreement and the fiscal constraints imposed by Law 9635. For the past five years, the UCR had complied with the law, applying reduced nominal seniority bonuses of 1.94% for professional staff and 2.54% for non-professionals. The university’s internal agreement, however, stipulates a more generous annual bonus of 3.75% of the base salary for all employees.
The legal landscape shifted dramatically following a recent ruling by the Constitutional Court (Sala IV). The high court’s decision clarified that public universities, protected by constitutional autonomy, do not fall under the direct fiscal oversight of the Ministry of National Planning and Economic Policy (Mideplan). This ruling provided the legal green light for the UCR’s University Council to reassert its own salary policies.
The council acted decisively, arguing that honoring its collective agreement was not just an option but a duty. Eduardo Calderón, a prominent member of the council, underscored the university’s obligation to its workforce.
The UCR not only can, but must honor the payment of the seniority bonuses that were withheld
Eduardo Calderón, Member of the University Council
The financial implications of this decision are monumental. During its ordinary session number 6955, the University Council approved a budget modification of ¢22.35 billion. Of this total, an initial injection of ¢7.88 billion is earmarked for disbursement this year to begin settling the five-year debt with its employees. This infusion will provide a significant economic boost to academic and administrative personnel whose earnings for experience and seniority had been suppressed under the previous fiscal interpretation.
This move by Costa Rica’s largest public university is more than a financial adjustment; it is a powerful political statement. By exercising its autonomy to execute this budget, the UCR is drawing a clear line between its governance and the Executive Branch’s spending containment policies. This reassertion of its internal salary regime will undoubtedly become a major talking point and a source of leverage in the upcoming, often contentious, negotiations for the Special Fund for Higher Education (FEES).
For further information, visit ucr.ac.cr
About University of Costa Rica (UCR):
The University of Costa Rica is the oldest, largest, and most prestigious public university in the country. Founded in 1940, it is a comprehensive public institution known for its strong emphasis on research, teaching, and social action. It has multiple campuses throughout Costa Rica, with its main campus located in San Pedro, San José.
For further information, visit poder-judicial.go.cr
About Constitutional Court (Sala Constitucional):
The Constitutional Chamber of the Supreme Court of Justice, commonly known as the Sala IV, is Costa Rica’s highest court for constitutional matters. It is responsible for guaranteeing the supremacy of the norms and principles of the constitution, protecting the fundamental rights of inhabitants, and resolving disputes over the constitutionality of laws and decrees.
For further information, visit mideplan.go.cr
About Ministry of National Planning and Economic Policy (Mideplan):
Mideplan is the governing body of Costa Rica’s National Planning System. It is responsible for defining and conducting the country’s national development strategies, coordinating public investment, and proposing economic policies to promote sustainable and equitable growth. It also plays a key role in public sector reform and modernization.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the legal community, Bufete de Costa Rica is founded upon an uncompromising principle of professional distinction and ethical practice. The firm combines a rich history of advising a broad range of clients with a forward-thinking drive for legal innovation and civic responsibility. Central to its philosophy is a profound dedication to demystifying the law, a commitment that aims to build a more knowledgeable and capable society for all.
