Costa Rica maintains the highest minimum wage in Latin America in the first half of 2025

Q COSTARICA — Costa Rica has the highest minimum wage in Latin America for the first half of 2025, according to a Bloomberg Línea study published on June 26 of this year.

The analysis compares monthly minimum wages in 17 countries in the region. For comparison purposes, the data was converted to US dollars using the official exchange rates in effect as of June 25, 2025.

With a monthly minimum wage of US$726 (¢367,108), Costa Rica ranks first in the region, followed by Uruguay in second place at US$586 and Chile in third at US$565.

Other countries such as Ecuador, Guatemala, and Mexico, although lower in the ranking, are above the regional average.

Panama (US$341), Peru (US$316), Brazil (US$273), and El Salvador (US$273) were left out of the top 10, while Argentina ranked third to last with a minimum wage US$262.

Screenshot from Bloomberglinea.com report

Finally, the country with the lowest minimum wage in Latin America is Venezuela, where the official wage of 130 bolívares, frozen since 2022, is equivalent to just over US$1.20 per month.

The Bloomberg Línea study shows the officially established minimum wages in each country, without adjusting for the cost of living or inflation.

Even so, the data reveal a notable disparity between the levels and policies each country implements in this area.

In this regard, the report highlights that, in almost the entire region, minimum wages alone are below the basic needs of the population.

Factors such as the level of economic development, inflation, exchange rate, tax structures, and the degree of labor formalization contribute to this gap.

In the case of Costa Rica, a high minimum wage does not necessarily guarantee greater purchasing power if the prices of basic goods and services, such as housing, transportation, and food, are also high.

Furthermore, one of the common challenges in the region is the total cost faced by employers (wages plus social security contributions), which limits the ability to increase income, especially in small businesses.

Another critical aspect is that, in several countries, minimum wage increases fail to offset the pace of inflation.

Since January of this year, only five countries have recorded increases: Argentina (1.4%), Bolivia (10%), Chile (3.6%), El Salvador (12%), and Nicaragua (4%).

The analysis took as a reference the lowest officially reported minimum wage values in those countries where different minimum wage scales exist.

In Costa Rica’s case, the minimum wage varies based on occupational profiles.

For the first half of 2025, the amounts established in the Ministry of Labor’s salary list are: