The National Wage Council - As its acronym in Spanish – CNS approved new adjustments to minimum wages in Costa Rica’s private sector, which will take effect on January 1, 2027.

The main changes include a general increase of 1.70%, specific adjustments for domestic workers and mid-level technical qualifications under Diversified Education, as well as new provisions governing the expression and calculation of minimum wages according to pay frequency.

These changes require particular attention from employers due to their impact on payroll, occupational classification, and the proper determination of employee compensation.

¿What Will the Wage Increases Be for 2027?

On October 28, 2026, the CNS approved a general increase of 1.70% in minimum wages for the private sector.

Subsequently, on November 2, an additional increase of 4.18% was approved for domestic workers, bringing the total increase for this category to 5.88%.

Likewise, a differentiated adjustment was approved for employees classified as mid-level technicians under Diversified Education, representing an approximate total increase of 2.59%.

According to information published by the Ministry of Labor and Social Security - As its acronym in Spanish - MTSS, the reference monthly increases for a full-time work schedule are as follows:

Occupational Category

Monthly Increase

Unskilled Worker

₡6.342,57

Skilled Worker

₡7.135,85

University Bachelor's Degree Holder

₡11.289,33

Mid-Level Technician in Diversified Education

₡12.931,56

These amounts represent reference increases and not the total minimum wages payable.

It is important to note that the general adjustment does not necessarily require a 1.70% increase for every employee. The obligation is to ensure that no employee receives compensation below the statutory minimum applicable to their occupational category.

¿What Changes in the Way Minimum Wages Are Calculated?

Through Resolution No. RG-MTSS-CNS-1-2026, published in Official Gazette No. 203 on October 27, 2026, the CNS approved changes to the way minimum wages are expressed.

As of January 2027, minimum wages will be expressed on a daily workday basis, converting the amounts previously established monthly into this format.

Piece-rate wages applicable to coffee harvesting (measured by the cajuela unit) and stevedoring work arrangements are exempt from this provision.

In addition, rules have been established to determine compensation according to pay frequency:

1. Commercial Activities

Weekly wages will be calculated based on seven days, in accordance with the applicable provisions.

2. Non-Commercial Activities

Weekly wages will be determined based on the days worked.

3. Biweekly and Monthly Payments

Where biweekly or monthly payment frequency is agreed upon, 15 or 30 days, respectively, will be used as the calculation basis.

These provisions seek to standardize wage calculation criteria and reduce differences in interpretation across the various payment arrangements.

It is important to clarify that expressing minimum wages daily does not require employers to change the payment frequency previously agreed upon with employees.}

¿How Will These Changes Affect Payroll?

The implementation of the new minimum wages and the changes to their calculation require employers to review the parameters used to process their payroll.

Incorrect system configuration could result in payments below the statutory minimum wage, compensation discrepancies, and potential labor contingencies.

It is also important to consider that wage adjustments may affect other compensation-related items, such as overtime pay, the statutory Christmas bonus, vacation pay, social security contributions, and certain employment benefits.

¿What Should Employers Review Before January 2027?

To prepare for the implementation of these changes, the following actions are recommended:

• Review occupational classifications and the minimum wages applicable to each position.
• Identify employees who require salary adjustments.
• Update calculation parameters in payroll systems.
• Verify the rules applicable to weekly, biweekly, and monthly payments.
• Review the treatment of differentiated adjustments for domestic workers and mid-level technicians.
• Assess the impact of the increases on other payroll items.
• Confirm the final amounts established in the corresponding Executive Decree.
• Retain supporting documentation of the reviews and adjustments performed.
• Preparing for these changes in advance will help reduce errors in the first 2027 payroll cycle and strengthen compliance with statutory wage obligations.

Legal Basis and Reference Sources

• Political Constitution of Costa Rica, Article 57. Costa Rican Labor Code.
• Law No. 832, Minimum Wage Law and Law Establishing the National Wage Council.
• Resolution No. RG-MTSS-CNS-1-2026, published in Official Gazette No. 203 on October 27, 2026.
• Ministry of Labor and Social Security: October 28, 2026, announcement regarding minimum wages for 2027.
• Resolutions adopted by the National Wage Council on October 28 and November 2, 2026.

See Document:
Minimum wage
Labor code
Constitution

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