Remote’s guide to employing in

Costa Rica
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Make employment in Costa Rica easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Costa Rica, all in one easy-to-use platform.

Services available in this country:
Employer of Record ProductContractor Management
  • Capital City

    San José

  • Currency

    Costa Rican colón (₡, CRC)

  • Languages

    Spanish

  • Population size

    5,094,118

Services available in this country:
Employer of Record ProductContractor Management
A crater with a blue lake in the middle.

Employment termination in Costa Rica

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.

Notice period

Notice periods required under Costa Rican law depend on an employee’s tenure, ranging between 1 week and a month.

  • 0 – 3 months: No notice period

  • 3 – 6 months: 1 week

  • 6 – 12 months: 15 days

  • 1+ year: 1 month

Severance pay

Severance pay entitlements are issued based on an employee’s tenure with the employer.

  • 3 – 6 months: 7 days pay

  • 6 – <12 months: 14 days’ pay

  • 1 year: 19.5 days’ pay

  • 2 years: 20 days’ pay

  • 3 years: 20.5 days’ pay

  • 4 years: 21 days’ pay

  • 5 years: 21.24 days’ pay

  • 6 years: 21.5 days’ pay

  • 7 – 9 years: 22 days’ pay

  • 10 years: 21.5 days’ pay

  • 11 years: 21 days’ pay

  • 12 years: 20.5 days’ pay

  • 13 years: 20 days’ pay

Probation periods

The Probation Period is maximum of 3 months. It is common to apply the maximum probation period to senior roles.