Costa Rica Tax Reform Law Part Three

The third and final component of the tax reform law is to initiate cost containment measures on the public sector. 

The law would limit the amount of incentive pay and bonuses to 25-30% for those with masters degrees and 10-15% for bachelor degrees.  Currently those incentives and bonuses can reach 60%.

Currently government departments could pass pay increases by internal administrative rulings.  The new law removes that discretion and requires any modification to incentive pay to be approved by law.

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