Life Sciences
Life Sciences CINDE 2017. All Rights Reserved. The facts of this report are believed to be correct at the time of publication. Please note that the contents delivered are based on information gathered in good faith from both public and proprietary sources. As such, CINDE can accept no liability whatsoever for loss or damage arising as a result of the use of this report, either in its published or online format.
Costa Rica: Minimum Hourly Wages 5.0 4.60
4.5
• The federal minimum wage of the United States is US$7.25 per hour
4.0 3.76
US$ per hour
3.5 3.05
3.0 2.5
4-year College Degree
2.91
2-year College Degree
2.57
Technician (high-school) Qualified Worker
2.0
Non-Qualified Worker 1.5 1.0 0.5 2010
2011
2012
2013
2014
2015
2016
Wages are unloaded and set by regulations Source: Costa Rican Ministry of Labor, 2017
2017
• In Costa Rica, the minimum wage for a non-qualified worker is $2.57 per hour
Job Position Production Manager Purchasing Agent SR Plant and Process Engineer Quality Engineer Process Quality Supervisor Specialized Technician Precision Mechanic Specialized Plant Operator Basic Machine Operator Non-Specialized Plant Operator
Monthly base salary (US$) Average 5,772 2,564 2,372 2,215 1,764 1,004 1,097 756 619 552
a/
Source: PriceWaterhouseCoopers Costa Rica. Survey for the Second Semester 2016. Notes: Data comprises unloaded salary information for Medical Device Companies. Exchange rate for calculations: US$1 = 550 colones. a/: Monthly average unloaded salaries. b/: Monthly unloaded salaries corresponding to the third quartile. It splits the highest 25% of the sample.
Percentile 75 b/ 6,586 2,851 2,612 2,496 2,273 1,140 1,154 822 643 585
Mandatory and non-mandatory costs for a typical operation in Costa Rica are calculated as unloaded salary multipliers:
Mandatory Social charges Christmas bonus Hazard Insurance a/- average Total mandatory cost Non-mandatory, but recommended Severance pay b/ – average (accounting provision) Total non-mandatory cost
Amount 0.2633 x unloaded salary 0.0833 x unloaded salary 0.0345 x unloaded salary 0.3811 x unloaded salary
Amount 0.0300 x unloaded salary
Total labor annual cost = unloaded salary + mandatory cost + non-mandatory cost = 1.4111 x unloaded salary
Example: an employee has an unloaded salary of US$570 per month = US$6,840 annually. The total labor annual cost is US$6,840 x 1.4111 = US$9,652
0.0300 x unloaded salary
Notes: a/ Range 1.9% to 5%. Average 3.45%. Required by law. b/ Range 3% to 5%. Average 3.0%. To finance a company Employer-sponsored Workers Association, severance provisions must exist. The employer contributes with a portion of the severance provisions, and the employees contribute with personal savings
Cooperation in labor-employer relations World Ranking Score, 1-7 (best) 1.0
2.0
3.0
4.0
5.0
6.0
Singapore Malaysia Ireland Canada Costa Rica Philippines United States Thailand Honduras Panama China Colombia Mexico Chile India Dominican Republic Peru Spain El Salvador Brazil Uruguay
•
Employer-sponsored workers’ association: operates as a credit union, providing multiple benefits to the employees, who can participate voluntarily
•
Both employer and employees contribute to the fund
•
They are not sector-wide bargaining instances, unlike American unions
•
94% of incorporated associations to “Solidarista Movement” are part of the private sector. This high level of participation is a particular tendency in Costa Rica
•
There are some similarities to a 401(k) retirement plan, without the stock options
7.0 3 17 19 20 24 27 30 36 38 40 47 48 52 57 67 72 75 80 109 118 136
Costa Rica ranks 1st in Latin America Source: World Economic Forum, Executive Opinion Survey. The Global Competitiveness Report 2016 - 2017.
Costa Rica: Minimum Hourly Wages 5.0 4.60
4.5
• The federal minimum wage of the United States is US$7.25 per hour
4.0 3.76
US$ per hour
3.5 3.05
3.0 2.5
4-year College Degree
2.91
2-year College Degree
2.57
Technician (high-school) Qualified Worker
2.0
Non-Qualified Worker 1.5 1.0 0.5 2010
2011
2012
2013
2014
2015
2016
Wages are unloaded and set by regulations Source: Costa Rican Ministry of Labor, 2017
2017
• In Costa Rica, the minimum wage for a non-qualified worker is $2.57 per hour
Job Position Production Manager Purchasing Agent SR Plant and Process Engineer Quality Engineer Process Quality Supervisor Specialized Technician Precision Mechanic Specialized Plant Operator Basic Machine Operator Non-Specialized Plant Operator
Monthly base salary (US$) Average 5,772 2,564 2,372 2,215 1,764 1,004 1,097 756 619 552
a/
Source: PriceWaterhouseCoopers Costa Rica. Survey for the Second Semester 2016. Notes: Data comprises unloaded salary information for Medical Device Companies. Exchange rate for calculations: US$1 = 550 colones. a/: Monthly average unloaded salaries. b/: Monthly unloaded salaries corresponding to the third quartile. It splits the highest 25% of the sample.
Percentile 75 b/ 6,586 2,851 2,612 2,496 2,273 1,140 1,154 822 643 585
Mandatory and non-mandatory costs for a typical operation in Costa Rica are calculated as unloaded salary multipliers:
Mandatory Social charges Christmas bonus Hazard Insurance a/- average Total mandatory cost Non-mandatory, but recommended Severance pay b/ – average (accounting provision) Total non-mandatory cost
Amount 0.2633 x unloaded salary 0.0833 x unloaded salary 0.0345 x unloaded salary 0.3811 x unloaded salary
Amount 0.0300 x unloaded salary
Total labor annual cost = unloaded salary + mandatory cost + non-mandatory cost = 1.4111 x unloaded salary
Example: an employee has an unloaded salary of US$570 per month = US$6,840 annually. The total labor annual cost is US$6,840 x 1.4111 = US$9,652
0.0300 x unloaded salary
Notes: a/ Range 1.9% to 5%. Average 3.45%. Required by law. b/ Range 3% to 5%. Average 3.0%. To finance a company Employer-sponsored Workers Association, severance provisions must exist. The employer contributes with a portion of the severance provisions, and the employees contribute with personal savings
Cooperation in labor-employer relations World Ranking Score, 1-7 (best) 1.0
2.0
3.0
4.0
5.0
6.0
Singapore Malaysia Ireland Canada Costa Rica Philippines United States Thailand Honduras Panama China Colombia Mexico Chile India Dominican Republic Peru Spain El Salvador Brazil Uruguay
•
Employer-sponsored workers’ association: operates as a credit union, providing multiple benefits to the employees, who can participate voluntarily
•
Both employer and employees contribute to the fund
•
They are not sector-wide bargaining instances, unlike American unions
•
94% of incorporated associations to “Solidarista Movement” are part of the private sector. This high level of participation is a particular tendency in Costa Rica
•
There are some similarities to a 401(k) retirement plan, without the stock options
7.0 3 17 19 20 24 27 30 36 38 40 47 48 52 57 67 72 75 80 109 118 136
Costa Rica ranks 1st in Latin America Source: World Economic Forum, Executive Opinion Survey. The Global Competitiveness Report 2016 - 2017.
