Costa Rica: Enhancing transparency and evidence-based social dialogue in wage policy

In Costa Rica, the minimum wage is a constitutional right that intends to guarantee the well-being and dignity of every worker. However, there are growing concerns that, on the one hand, minimum wages are not sufficient to meet the basic needs of workers and their families, and on the other hand, that companies are having trouble paying minimum wages because they are set at a very high level.

The SAW project has tackled these concerns through targeted initiatives that promote data transparency and fostersocial vetting of the mechanisms established for setting minimum wages, and that at the same time, improve the inputs available for decision-making related to wage policies in Costa Rica.

Greater transparency with the Minimum Wage dashboard

A major accomplishment of the SAW Project in Costa Rica is the development of a public Minimum Wage dashboard, which offers comprehensive access to wage data and aids in calculating minimum wage adjustments. This tool enables Costa Rican citizens, policymakers, and social partners to understand the criteria behind adjustments and monitor compliance, all while promoting transparency and social accountability. By providing this level of access, the dashboard empowers the public to engage with and hold wage-setting bodies accountable for fair, data-informed decisions.

Additionally, the dashboard fosters a more participative approach to wage policy, allowing both workers and employers to better navigate the minimum wage landscape. This focus on transparency positions Costa Rica as a regional model for open and accountable wage-setting processes.

Historical traceability of minimum wage adjustments

One of the great achievements of the SAW Project through the creation of the Minimum Wage dashboard is the ability to trace minimum wages over time. Until now, it had not been possible to clearly visualize the evolution of minimum wages, since the information was not concentrated in a single place or available at all.

This situation made the historical analysis of the political, economic and social factors that influenced the setting of minimum wages difficult. Consequently, the considerations of National Wage Council members lacked a historical account of the minimum wage context, thereby limiting their analysis to an extremely short period of time.

Thanks to the creation of the Minimum Wage dashboard, decision makers now have better inputs and data for evidence-based social dialogue focused on wage-setting policies in Costa Rica.

Influencing minimum wage policies in the region

Costa Rica has one of the most stable and consolidated minimum wage setting systems in the Americas. However, to date, good practices and lessons learned have not been shared with other relevant actors in the region due to the lack of a tool that could enhance public awareness, comparison with other systems, and academic research.

Now, with the creation of the Minimum Wage dashboard, the impact of the SAW Project can transcend the borders of Costa Rica, facilitating the exchange of experiences and learning among peers on Minimum Wage Councils in Central America, the Dominican Republic and Mexico, and influencing regional decision-making on wage policies.

Conclusion: paving the way for sustainable wage improvements

The SAW project has made important strides in fostering transparency in Costa Rica's wage-setting processes. By prioritizing data-driven tools for social dialogue, not only is the project raising awareness of wage rights, it is also supporting sustainable, long-term improvements. The SAW project has already achieved significant progress through its focus on evidence-based policy and strategic collaboration with national stakeholders, laying a strong foundation for a more equitable and compliant wage environment in Costa Rica.

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