BusinessCCSSGovernment

CAJA fee reduction will be extended

  • President Carlos Alvarado, requested the Board of Directors of the CCSS agreed to maintain the reduction of the minimum tax base for another month.
  • The measure will contribute to coping with the effects of the COVID-19 emergency on companies and the workforce.
  • The Executive Branch will include in the extraordinary budget an earmark to assure the CCSS continue to receive resources.

Around ₡ 8,500 million will be incorporated into the extraordinary budget that the Executive Power will present next July in order for the Government of the Republic to assume the cost of reducing the minimum tax base that the Costa Rican Social Security Fund (CCSS) decided to extend for one more month.

The minimum contributory base is the base salary by which all employers and workers must contribute to health and pension insurance, even if they pay or receive lower remuneration. Since last March the CCSS agreed to reduce it by 75% for a period of three months, as part of the actions to support the national economy in the face of the health emergency caused by the COVID-19 disease.

The decision to extend this measure for a further month was made by the Board of Directors following an express request from the President of the Republic in this regard so that companies and individuals would have greater liquidity to face these difficult times.

“We thank the CCSS for making this decision that allows us to continue protecting employment and the productive fabric of our country. The Government of the Republic undertakes to contribute to the CCSS ₡ 8,500 million to cover the decrease in the minimum tax base, safeguarding the sustainability of the finances of the CCSS, “explained María del Pilar Garrido Gonzalo, Minister of National Planning and Coordinator of the Government Economic Council.

According to the hierarchy, the objective of this CCSS measure is to safeguard the liquidity of households and companies to protect employment. This action is in addition to others that the Economic Council has promoted in order to reduce the destruction of employment as a result of the pandemic. Additionally, the Government continues to work to protect families, seek the gradual reopening of the economy, the resources for the Protect Bond, external financing, and the training of the unemployed, among others.

Share
Previous post

Should I Invest in Costa Rica?

Next post

NEW PHASE OF REOPENING and Updates

The Author

rafavalverde

rafavalverde

No Comment

Leave a reply

Your email address will not be published. Required fields are marked *