The wage council of the Ministry of Labor sets the minimum wage scale for the public and private sectors twice a year. Monthly minimum wages for the private sector ranged from 183,939 colones ($322) for domestic workers to 644,689 colones ($1,130) for university graduates since January 1. According to INEC, in 2016 the poverty line was 107,769 colones ($189) in urban areas and 82,950 colones ($145) in rural areas. The national minimum wage applied to both Costa Rican and migrant workers. The law sets workday hours, overtime remuneration, days of rest, and annual vacation rights. Workers generally may work a maximum of eight hours a day or 48 hours weekly. Workers are entitled to one day of rest after six consecutive days of work, except in the agricultural sector, and annual paid vacations. The law provides that workers be paid for overtime work at a rate 50 percent above their stipulated wage or salary. Although there is no statutory prohibition against compulsory overtime, the labor code stipulates the workday may not exceed 12 hours, except in the agricultural sector when there is “imminent risk of harm…to the harvest” when work cannot be suspended and workers cannot be substituted.
The government maintains a dedicated authority to enforce occupational safety and health (OSH) standards. The OSH standards are appropriate for the main industries in the country, per the National Council of Occupational Safety and Health. The Labor Ministry’s National Council of Occupational Health and Safety is a tripartite OSH regulatory authority with government, employer, and employee representation. According to labor organizations, the government did not enforce these standards effectively in either the formal or the informal sectors.
Workers can remove themselves from situations that endanger health or safety without jeopardizing their employment. According to the Labor Ministry, this is a responsibility shared by the employer and employee. The law assigns responsibility to the employer, including granting OSH officers access to workplaces, but it also authorizes workers to seek assistance from appropriate authorities (OSH or labor inspectors) for noncompliance with OSH workplace standards, including risks at work.
The Ministry of Labor’s Inspection Directorate (DNI) is responsible for labor inspection, in collaboration with the Social Security Agency and the National Insurance Institute. The DNI employed labor inspectors who investigated all types of labor violations. The number of labor inspectors, 87, was likely insufficient for the size of the workforce, which included more than two million workers. According to the ILO’s technical advice of a ratio approaching one inspector for every 15,000 workers in industrializing economies, the country should employ approximately 150 inspectors. According to the Ministry of Labor, inspections occurred both in response to complaints and at the initiative of inspectors. The DNI stated it could visit any employer, formal or informal, and inspections were always unannounced.
The Labor Ministry generally addressed complaints by sending inspection teams to investigate and coordinate with each other on follow-up actions. As with other labor laws, inspectors cannot fine or sanction employers who do not comply with laws on acceptable conditions of work; rather, they investigate and refer noncompliance results to labor courts. The process of fining companies or compelling employers to pay back wages or overtime has traditionally been subject to lengthy delays.
The Ministry of Labor generally enforced minimum wages effectively in the San Jose area but less effectively in rural areas, particularly where large numbers of migrants were employed, and in the large informal sector, which comprised 44 percent of employment as of August. The ministry publicly recognized that many workers, including in the formal sector, received less than the minimum wage.
According to INEC, 44 percent of the economically active population in the nonagricultural sector was in the informal economy. The Ministry of Labor, through the National Program in Support of the Microenterprise, provided technical assistance and access to credit for informal microentrepreneurs to improve productive and labor conditions in the informal economy.
Observers expressed concern about exploitative working conditions in fisheries, small businesses, and agricultural activities. Unions also reported systematic violations of labor rights and provisions concerning working conditions, overtime, and wages in the export-processing zones. Labor unions reported overtime pay violations, such as nonpayment of wages and mandatory overtime, were common in the private sector and particularly in export-processing zones and agriculture. There were reports that agricultural workers, particularly migrant laborers in the pineapple industry, worked in unsafe conditions, including exposure to hazardous chemicals without proper training. Early in the year, workers from a private pineapple-producing company organized a labor strike urging their employer to comply with basic labor laws, including paying minimum wage and recognizing their right to unionize.