Flat pay rate 'is key for public-sector law' in Costa Rica

Establishment of a flat wage rate for the state sector will be the key to success for the public-sector labor law to be presented next month by the Costa Rican government, business sources say.

Cuts in additional pay "pluses", including generous severance payments after 20 years service, along with strict performance checks, are among the major proposals being made by leaders in the private sector.

The aim is to slash spending of $4.2 billion on the government wage bill, thus reducing last year's 6 percent deficit in the nation's output.