Hire employees
and contractors in Costa Rica

• 

  Supplementary private insurance
• 

  Supplemental dental insurance
• 

  Supplementary vision insurance
• 

  Additional paid holidays
• 

  Flexible work schedule
• 

  Pension scheme
• 

  Life insurance
• 

  Other insurance

• Employer

  • 30% - Corporate tax rate
  • 9.25% - Health & Maternity
  • 5.25% - Basic Pension Scheme
  • 0.25% - Banco Popular Employer Fee
  • 5.0% - Family Assignations
  • 0.5% - Social Aid: (IMAS)
  • 1.5% - INA
  • 0.25% - Contribution from Banco Popular Employer
  • 3% - Labor Capitalization Fund
  • 0.5% - Complementary Pension Fund
  • 1% - National Insurance Institute

• Employee

  • 5.5% - Medical and maternity contribution
  • 4.0% - Disability, old age, and death benefits

• Employee income taxes

  • 0% - Up to CRC 817,000 ($1319.28)
  • 10% - CRC 817,001 to 1,226,000 ($1319.28 - $1979.72)
  • 15% - CRC 1,226,000 to CRC 2,103,000 ($1979.72 - $3395.88)
  • 20% - CRC 2,103,000 to CRC 4,205,000 ($3395.88 - $6790.15)
  • 25% - Over 4,205,000 ($6790.15)

Paid
time off

Employees are entitled to two weeks of paid vacation annually once they have worked with an employer for an entire year. Many Costa Rican employers increase the number of allotted days off per year as a benefit for the employee.

Public
holidays

Employees can take nine paid public holidays off and non-Catholics are entitled to paid time off to observe religious holidays such as Yom Kippur, Eid-el-Fitr, etc.

Whenever the following holidays fall on any day other than a Monday, employees will take the following Monday off in place of the holiday.

• Juan Santamaria,
• Annexation of Nicoya,
• Mother’s Day, and
• The Assumption of Mary

And should an employee be required to work on a public holiday, the employer will provide a replacement holiday within 15 days.

Sick
leave

Employees are entitled to sickness benefits from both the employer and the social security office, provided they’ve made the latter’s required contributions.

For the first three days of an illness, employees can draw a sickness benefit equivalent to their full wages, with 50% paid by the employer and 50% paid by the social security office.

The employee will draw wages equivalent to 60% of their normal wages from the fourth day, paid by the social security office.

Maternity
leave

Female employees are entitled to 4 months of maternity leave, starting a month before delivery, and compensated at a 100% rate, paid 50:50 by the employer and the social security office.

Paternity/Parental
leave

There are no provisions for private employees to receive paternity or parental leave under Costa Rican labor law.

Termination process

Employee contracts can be terminated if a just cause is established, such as dishonesty, negligence, fraud, redundance, or any other tangible reasons, with notice provided in advance and stipulated below.