Construction worker wages?

Do we know if that payment includes the other employer contributions though? The CAJA etc?

This from a friend of mine who has built many homes here in Costa Rica

“we pay 1,000 colones ($2.00 per hour) per peon plus 31% for insurance and social security. the maestro de obras usually averages around $600-$800 per month. 50 hour work week. thanks,”

“In speaking to Marcos who is a bank messenger, his employer deducts 5% of his poay for Caja.”

9% is deducted directly from the employees wages and 31% is paid by the employer. At least this was the rate when I last was a wage earner in CR

[quote=”waggoner41″][quote=”Scott”]Do we know if that payment includes the other employer contributions though? The CAJA etc?[/quote]

Since the Ministry de Trabajo is difficult for me to get through with my limited Spanish I cannot say definitively.

I have to asssume that those wages go to the employee and the Caja, etc. is betond that.

In speaking to Marcos who is a bank messenger, his employer deducts 5% of his poay for Caja. Any other taxes are paid by the employer. That should be standard for Costa Rica and applies to full time permanent employees.[/quote]

Most of the more experienced contractors in the beach communities charge $5/HR.

[quote=”costaricafinca”]I doubt that one could hire competent construction workers for the amount posted
“The worker (Calificado) was 7,882 per day as of last January 1
The Lead man (Especializado) was 9,204 as of January 1”
These wages are less than a peon/farm worker.[/quote]

These are the minimums set by Ministerio de Trabajo.

Competence can only be determined by reputation and many times Ticos will not say anything against another Tico.

I manage a property that needed a rather large driveway and parking area ripped out and redone in concrete and had three sets of men give me bids. Two companies and a group of construction worker who were at the time without work.

Thanks to input from this forum I decided that I wanted to use Fibromax rather than metal malla for reinforcement and explained. The unemployed workers gave me the best answers to my questions and I hired them on contract. Their final pay came to something over $12 per hour but when we developed a problem with the concrete they were immediately on it under their guarantee. I am totally satisfied with the cost and their performance.

With a written contract I was not responsible for Caja or taxes. If you hire by the hour you are.

It also looks like any percentage of Caja tobe paid by the employee is a matter of negotiation.

Under all circumstances I would have a written agreement to cover everything.

For a reasonably skilled worker with his own tools, I typically pay 1,300-1,500 per hour. A helper usually earns 1,000 to 1,200. This is the rate we pay for contract labor for small jobs of no more than a few days.

[quote=”Canadianman”]I have heard that some Tico people work for as little as two dollars per hour, but I would never pay less than five dollars per hour. Or, offer $3. and additional pay for a job well done, bringing the rate up to an average of $5. an hour.
Workers take longer coffee breaks in Costa Rica, so you must take that into consideration when deciding on a rate of pay.
It might be better to offer a sum for the job, but pay the money as the project progresses. Never pay in advance.
I’m not an expert on hirring Tico workers, but that’s the amounts and methods I will use when I move there next year.[/quote]

I don’t know your area of the country, what kind of workers you plan to hire, their skill levels, etc., but you won’t do yourself any favors by paying more than the prevailing wage. In fact, just the opposite is probably true. Word gets around very quickly and if you overpay your workers you’ll be issuing an open invitation to the entire community to overcharge you for everything.

It’s okay to pay by the hour for small jobs and day labor. For everything else, you’re usually much better off working with fixed price contracts for the entire job and paying in stages based on percentage of completion. I’d get at least two or three estimates for anything but very small jobs. Always hold back a minimum of 15 to 20 percent until final completion and acceptance. If you don’t, the last details will never be completed to your satisfaction. For small contract work, it’s common to pay 50% prior to commencement and the balance on completion. This obviously doen’t apply to large contracts such as building a house.

Also, if you’re paying weekly or hourly salaries (instead of fixed price contracts for specific jobs), you are an employer and subject to ALL of the employment laws. This is very costly! Be careful of what you’re getting into or you’ll regret it.