The School Salary in Costa Rica: Differences Between the Public Sector and Private Sector

The school salary is an additional income paid every January as part of public policies designed to facilitate access to formal education in Costa Rica. Although its application differs between the public sector and private sector, in both cases, its main objective is to provide economic support to workers by granting them additional income at the beginning of the year, coinciding with a period of high family expenses.

Initially, it was established as salary compensation through an executive decree as part of an extraordinary salary adjustment in 1994. Since a salary increase could not be granted, it was decided to compensate for it with a thirteenth salary in January. Over time, this measure has evolved and been consolidated as fixed ordinary remuneration for public sector employees.

This right has been defended as an achievement within the progressivity of labor rights. In 2007, the Ministry of Labor and Social Security issued Directive No. 019-MTSS, which required all public institutions to include the details of the school salary in their salary statements.

In the public sector, the school salary is an accumulated and deferred payment. It is considered an inalienable right of the worker and is deposited to all public employees, regardless of whether they have school-age children or dependents who are studying. Currently, it amounts to 8.33% of the worker’s annual gross salary.

Unlike the public sector, the school salary in the private sector is voluntary and aims to promote savings among workers. However, it is important to highlight that an employer’s refusal to make the deductions once the worker has expressed their wish may lead to legal sanctions. The percentage can range from 4.16% to 8.33% of the monthly salary and is paid during the first half of January.

Key Differences Between Both Sectors

1. Mandatory Nature: In the public sector, it is an acquired and mandatory right, while in the private sector, it is voluntary and depends on the worker’s decision.
2. Amount and Calculation: In the public sector, the amount is equivalent to 8.33% of the annual gross salary. In the private sector, the worker can choose a percentage between 4.16% and 8.33% of their monthly salary.
3. Purpose: In the public sector, its origin lies in deferred salary compensation, whereas, in the private sector, it is conceived as a voluntary savings mechanism.
4. Regulation: In the public sector, the school salary is based on government decrees and directives, whereas in the private sector, its legal basis is Law No. 8682.
5. Payment and Administration: In the public sector, the payment is made directly by state institutions. In the private sector, savings can be managed by solidarity associations, cooperatives, or the Popular Bank for Community Development.

It is important to emphasize that, in both cases, the school salary is exempt from income tax, cannot be garnished, and is only subject to deductions for child support, either by mutual agreement or judicial order.

In conclusion, the school salary is a relevant financial support mechanism for workers in Costa Rica. Although its application differs between the public sector and private sector, it is considered a right for all workers, protected and regulated by Costa Rican law. Its ultimate goal is to facilitate access to education and mitigate the economic impact of returning to school in January.

Monserrath Serrano Obando
Legal Assistant
mso@quatro.legal

Disclaimer: The information provided in this blog post is for general informational purposes only and is not intended to constitute legal advice. While we strive to ensure the accuracy and timeliness of the content, laws and regulations are subject to change. For the most accurate and up-to-date information, please contact our office directly. Some images may be AI generated.