Costa Rica’s minimum wage exceeds Nicaragua’s by $500, but this is not entirely good

QCOSTARICA — Costa Rica has the highest minimum wage in Central America and surpasses Nicaragua, which occupies the last place in the ranking of the isthmus, by more than US$500 per month.

However, not everything is positive, as economic analyst Daniel Suchar points out that Costa Rica’s taxes, social charges, and energy costs contribute to its high cost of living and diminish its competitiveness.

#CostaRica Somos el #SalarioMinimo más alto de #CentroAmerica gracias a la infinidad de #Impuestos que no logramos cubrir con recursos frescos como #RecursosNaturales y recortes al #GastoPublico#Economia #Finanzas #FinanzasPublicas #thisiscostarica🇨🇷 #costaricacool #PuraVida pic.twitter.com/zCjClnMA7e

— Daniel Suchar Zomer (@danielsuchar) March 4, 2024

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“The difference between the last and the first is US$500. It is one thing to earn and another thing to have the purchasing power to buy everything (…) In Costa Rica we have the highest social security contributions in the region and in the OECD (countries); Likewise, the country has one of the highest tax collections of said organization, in addition to the high energy costs. All of this makes the cost of living in Costa Rica very high, so you have to have high salaries,” Suchar said.

Central America has already adjusted its minimum wages throughout the region and the new salaries starting this month.

Minimum salaries in Central America (measured in US dollars):

1. Costa Rica: $730
2. Panama: $640
3. Honduras: $540
4. Guatemala: $460
5. El Salvador: $365
6. Nicaragua: $222

Click here for the List of Minimum Wages, by occupation, in Costa Rica for the year 2024.

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