Tuesday 28 September 2021

President Alvarado announced 15% pay cut of his cabinet

The reduction in pay takes effect on August 31 and applies to all cabinet ministers and executive presidents of public institutions; the President took the same pay cut last month

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(QCOSTARICA) President Carlos Alvarado announced Thursday that his has asked his Ministers and executive presidents of public institutions, to join him in a 15% wage cut, to mitigate public spending amid the coronavirus pandemic.

The measure will apply to the starting August 31.

“The first thing I want to announce is that I have asked the government cabinet, both ministers and executive presidents, to accompany me in the 15% reduction in the remuneration received for their workday,” said the president, emphasizing that the cut in pay will not mean less work hours.

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“It does not mean that the ministers will work less days. On the contrary, the cabinet will accompany me in this measure,” he clarified.

Last month, Alvarado announced his cut in pay. On Saturday, July 18, the 15% salary reduction of the President was published in the official newspaper La Gaceta.

Alvarado explained the reduction in salary of his cabinet and agency heads is in line with the bill to cut all salaries of public officials earning more than ¢1.5 million colones monthly, except in the case of employees. directly related to the attention of the pandemic.

Alvarado said that the proposal is alive and the government’s challenge is to convince Legislators to move forward with this initiative.

He added that the Executive has also not opposed plans to temporarily increase taxes on income and wages.

“I would like it to be the moral call, and that is why we want to lead by example, the one that allows us to advance in that direction. I would not want the prolonged reality of a crisis to tell us ‘we cannot pay, just like that”.

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The president reminded that in 2018, his first year in office, the sacred and constitutional year-end bonus, the Aguinaldo, had to be delayed due to the country’s financial situation/

“Today we are not in that circumstance happily, but if we do not begin to adopt certain measures in this critical situation, it will be,” said the president.

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