Observation (CEACR) - adopted 2012, published 102nd ILC session (2013)

Minimum Wage Fixing Convention, 1970 (No. 131) - Costa Rica (Ratification: 1979)

Articles 3 and 5 of the Convention. Criteria for determining minimum wage levels – Adequate inspection. The Committee notes the Government’s reply to the comments made by the Confederation of Workers Rerum Novarum (CTRN) alleging inadequate monitoring of compliance with minimum wage legislation due to the limited number of labour inspectors and also emphasizing the need to bring up to date the structure and value of the family basket of goods (both urban and rural) and to strengthen the National Wages Council.

In its response, the Government indicates that major efforts have been made in the last five years for increasing the staffing of the National Inspection Directorate (DNI). The Government also refers to the National Minimum Wages Campaign launched in 2010 with a view to reinforcing the supervision of minimum wage legislation. The Government states that ensuring compliance with minimum wage rates in force has become a national priority and is part of a national strategy for the eradication of extreme poverty. According to the statistical results obtained during the first year of the National Minimum Wages Campaign, from 1 August 2010 to 31 August 2011, 9,770 establishments were inspected, of which 4,161, or 42.6 per cent, were found in breach of the applicable minimum wage legislation. Most of the cases of non-compliance, i.e. 41 per cent, were observed in commerce and agriculture.

While noting these explanations which tend to confirm CTRN’s concern about a significant part of the active population receiving wages inferior to the applicable minimum wage, the Committee asks the Government to take all appropriate measures to ensure the effective application of the national legislation relating to minimum wages, including the employment of a sufficient number of adequately trained inspectors and the imposition of truly dissuasive penalties for infringement of the provisions relating to minimum wages.

The Committee also requests the Government to submit its observations with respect to other issues raised by CTRN, including the determination of the “family basket of goods” indicator, and the methodology used by the National Wages Council for the annual readjustment of the minimum wage.

Finally, the Committee would appreciate receiving the Government’s response to the point raised in an earlier comment concerning the application of Article 2(1) of the Convention (young workers remunerated at a rate of between 50 and 75 per cent of the minimum wage).