The government has put a ceiling on the highest pensions in Costa Rica in an effort to restore the national budget. Victor Morales Mora, the labor minister, announced Tuesday that 910 pension plans for public officials will be affected by a maximum limit of money.
Government officials estimated that this measure could save 12 billion colons annually.
The decision delves into Article 3 of Ley 7858 and establishes that the maximum limit is equal to 10 times the base salary of the lowest paid salary in Costa Rica’s public administration. Currently the lowest base salary sits at 236,700 colons per month, which would mean that the maximum pension an official could receive would be 2.3 million colons, or just more than $4,000.
Morales said the addition to the law should go into effect on Sept. 15. It is expected to exclude ex-legislators from having to adhere to the same pension limit, according to Morales, who said such a measure would require reform of the entire law in Asamblea Legislativa.