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20 May 2017 | 06:13 PM UTC

Costa Rica: Demonstrations in San José May 22

Demonstrations by workers' unions in San José May 22 in response to social security rate increase

Warning

Event

On Monday, May 22, members of the National Association of Public and Private Employees (ANEP) will demonstrate in San José in opposition to an increase in the social security rate. Costa Rica's Social Security System (Caja) has increased the amount deducted from salaries by 1 percent in order to help finance the country's primary pension system.

ANEP members will gather outside of the Caja building in downtown San José at 07:00 (local time). Given that the union's leaders have stated that they intend to block traffic in front of Caja, potential traffic disruptions are possible.

ANEP has stated that if the board of the Caja does not reverse its decision, they will enact a nationwide demonstration and strike on May 29.

Context

The Board of Directors of Caja approved raising the deduction rate to 10.16 percent in January in order to collect CRC 100 billion (some USD 173 million) per year in additional funds for the pension system. Their decision was based on the results of a study done by the University of Costa Rica's School of Mathematics, which called for increasing the rate in order to avoid bankruptcy of the pension system and raising the retirement age for workers from 65 to 70. While the decision was also opposed by President Luis Guillermo Solís, the Caja operates independently of the Executive Branch and has rejected suggested changes.

Advice

Individuals are advised to avoid all demonstrations and plan for potential traffic disruptions.