Thursday 17 June 2021

An End To Excessive Perks For Government Employees Proposed

The proposal being discussed in the Legislative Assembly would limit bonuses and increase income tax on all incomes over ¢2.1 million colones

The majority of legislators declared war on a series of salary bonuses (“pluses salariales” in Spanish) that public officials have received for years, incorporating motions to the fiscal reform that is currently being discussed in the Legislative Assembly.

PAC legislator Ottón Solís is one of the main drivers of the changes to end excessive perks of govermment employees and an increase in income tax on incomes over ¢2.1 million. Gerson Vargas / La Republica

The main changes would be to limit the annuities to 1.94% of the base salary, this benefit is received by public workers for each year worked, and in some cases it reaches up to 7%.

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The ceiling in the annuity is being promoted by legislator Ottón Solís would not apply to public institutions that have collective agreements that fix a larger amount, such as Japdeva, RECOPE, and INS.

However, it would apply to central government officials, whether new or old.

Another approved motion is to charge a 20% income tax on salaries ranging between ¢2.1 million and ¢4.2 million, and one of 25% to those that exceed ¢4.2 million. Currently, those the rate for those salaries are 15%.

“The fiscal deficit (problem) is not resolved by hitting the working class. We cannot be the only ones sacrificed with these unjust government measures,” said Albino Vargas, secretary of the ANEP, one of the largest public workers unions in the country.

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The mandate of the current Legislative Assembly ends on May 8, 2018.

Source (in Spanish): La Republica

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