Employer of record in Costa Rica: costs, rules and how to hire
Hire someone in Costa Rica without opening your own Costa Rican company.
An employer of record (EOR) can handle local employment while you manage the person’s work. Start by confirming the provider’s coverage and the arrangement available for your specific hire.
By Employ Borderless · We help you understand and compare EOR services.
How does an employer of record in Costa Rica work?
Three parties, two contracts: the EOR employs the person under a local employment contract, your company signs a service agreement with the EOR and directs the day-to-day work. Which arrangement is legal and sensible in Costa Rica is decided by the questions below.
Your company
Choose the person, agree their role and manage their daily work.
The employer of record
Handles the agreed employment, payroll and HR services through the employing entity named in your contract.
Your employee
Works with your team under a local employment contract with the EOR’s employing entity.
- Do you already have an entity in this country?
- How many people are you hiring, and for how long?
- Is the work genuinely independent, or is it a job?
- Who carries the employment risk if the arrangement is challenged?
What each route means in full
- Your own entity
- Choose it when: You already have a company here, or you are committing to a substantial local team for the long term.You become the legal employer. You arrange payroll, benefits, filings and employment support yourself, and you carry the setup and running cost.
- Employer of record
- Choose it when: You have a person to hire here, want them employed properly, and do not want to open a company for it.The provider is the legal employer through its own entity. You direct the work and pay one invoice covering salary, employer costs and the service fee.
- Independent contractor
- Choose it when: The work is genuinely independent: their own business, their own methods, their own clients.A contract for services, not employment. The label does not decide the status; how the person actually works does, and getting it wrong is reclassified after the fact.
Hiring in Costa Rica: the short version
Costa Rica has no single minimum wage. The 2026 monthly minimum for the generic unskilled category is CRC 373,092.30, general office work is listed at CRC 405,710.70, the generic qualified rate is CRC 419,755.80 and the university bachelor and licentiate categories are CRC 664,078.07 and CRC 796,921.00. The floor follows the actual duties and required qualification rather than the job title, so the first payroll question is which category the role sits in.
The second thing to settle is what your own business becomes in the arrangement. Under Labour Code Article 3, an employer can be jointly liable for an intermediary's actions, while a contractor performing work with its own capital is treated differently. Ask the provider which of those it is before assuming it takes every employment risk.
Your first hire in Costa Rica in five decisions
Five things settle a Costa Rican hire, and the figures behind each are worked through further down this page.
- Entity or EOR. Whether the provider is an intermediary or a contractor with its own capital, which decides what liability stays with you.
- Employee or contractor. Personal service, pay and subordination are the main indicators, and a services contract label does not displace them.
- Budget line. A standard employer schedule of 26.83%, plus aguinaldo at roughly one twelfth of qualifying earnings and occupational-risk insurance on top.
- Notice reality. One week from three months of service, fifteen days after six, one month after a year, with severance from seven days of salary.
- Realistic start. After the written contract, the CCSS registration and, for a foreign hire, immigration status that permits the actual work.
EOR, entity, or contractor in Costa Rica?
The route comparison in Costa Rica turns on a single article of the Labour Code, because it decides whether your business shares the employer's obligations.
Compare the service and the responsibilities
With direct employment, your Costa Rican entity employs the person and can buy payroll or HR support separately. Compare that arrangement with an EOR by looking at employer responsibilities, fees, deposits, employee support and future transfers, because a PEO or EOR label does not replace this assessment. There is no universal headcount at which your business must switch models.
Ask the provider to explain who signs the contract, pays salary, registers the employee, manages workplace safety and handles an exit. Under Labour Code Article 3, an employer can be jointly liable for an intermediary's actions, while a contractor performing work with its own capital is treated differently. Review the actual arrangement before assuming the provider takes every employment risk.
| Decision | Questions for the provider |
|---|---|
| Employment arrangement | Who employs and directs the person, and what liability can the client retain? |
| Full cost | Which contributions, insurance, benefits, fees and deposits are outside salary? |
| Employee support | Who handles payroll questions, leave, complaints and workplace concerns? |
| Future plans | How will a move to your own entity preserve existing employment rights? |
Substitution of the employer must not harm existing employment contracts, and the previous employer remains jointly responsible with the new employer for pre-transfer obligations for six months under the Labour Code. If you later move from an EOR to your own entity, plan continuity, accrued leave, benefits, contributions and the documentation before the transfer date.
Moving from an employer of record to your own Costa Rican entity
Plan this around the severance provision and the Christmas bonus, both of which build with service and are what the employee will check when the employer's name changes on the payslip.
Settle in writing before the move: whether service with the provider counts towards seniority and the severance calculation; how the accrued Christmas bonus and holiday are apportioned; and how the social security registration is closed and reopened so cover is continuous.
I have not read a Costa Rican government source on the effect of a change of employer on continuity in this pass, so I am not going to state a rule. Put it to a local adviser. Ask the provider what notice the service agreement requires, who settles the severance and the bonus if the employment ends rather than transfers, and what records they will hand over.
How to hire employees in Costa Rica
Three routes are open, and the third step below is the one that needs the occupation table rather than a market benchmark.
Work through five hiring steps
Five steps run from the job definition to the first day.
| Step | What to agree |
|---|---|
| 1. Define the role | Duties, location, reporting line, working hours and permission to work |
| 2. Check the employer | Employing entity, registrations, responsibilities and employee support |
| 3. Build the offer | Correct wage category, salary, contributions, aguinaldo, benefits and fees |
| 4. Complete the documents | Written contract, remote-work terms, payroll information and required permissions |
| 5. Prepare the start | Equipment, safety, pay dates, leave process and contact details |
Written contracts are the general rule, with limited exceptions. Record the parties, role, place of work, duration, hours, salary, payment arrangements and agreed terms, and give the employee a copy, adding remote-work, benefits and policy details where relevant. Arrange a Spanish version suitable for local administration and make sure the employee understands it, and note that statutory rights apply even when an employer fails to document the contract.
Set a start date after the provider confirms the outstanding documents and registrations, and ask for an expected completion date for each remaining step.
How long the first hire takes, and what sets the date
Registration with the social security fund sets the date in Costa Rica, and it precedes the start rather than following it.
So rather than a number of weeks, here is the sequence, in the order the steps actually gate each other. Work backwards from whichever one is unresolved in your case, because that is the one holding your date and the rest will not be.
- Agree the offer and the written terms, and settle whether the role sits in a category with its own minimum in the official wage decree.
- Confirm the right to work, and where a residence category permitting work is needed, treat that as the critical path.
- Have the employing entity register the person with the social security fund and the insurance institute before work starts.
- Settle how the Christmas bonus and the severance provision are handled, since both accrue rather than arriving as surprises.
- Land the start date on the payroll cut-off so the first month and the holiday accrual begin together.
Ask the provider to confirm the social security registration date. In Costa Rica that registration is what gives the person cover, and its absence is an inspection finding.
What should you budget for hiring in Costa Rica?
Your budget includes salary, employer contributions, agreed benefits and the EOR fee. Ask for a quote for the actual role and salary.
- Gross salary
- Employer contributions
- Benefits and other costs
- EOR service fee
- Gross salary: 100
- Employer social contributions: 24.62%
- Benefits and EOR fee: quoted per hire
The numbers behind this figure
| Cost | Amount |
|---|---|
| Gross salary | 100 |
| Employer social contributions | 24.62% |
| Benefits and EOR fee | Quoted per hire |
Source: OECD, 2025
Published EOR base fees among providers covering Costa Rica range from $99 to $699 per employee/month. These are provider base prices, not a quote for this hire or the total employment cost.
Employer contribution benchmarks · 2025
These stored OECD benchmarks help with initial planning. Earnings ceilings, employee circumstances and later changes can affect the actual charge; use the EOR’s itemised quote for your budget.
| Contribution | Rate |
|---|---|
| Employer social contributions | 24.618462% |
Separate employer contributions from employee deductions
For salaried employment, the health-insurance regulation sets employer contributions at 9.25% and employee deductions at 5.50% of the relevant salary base. Ordinary pay, extra remuneration and pay in kind can enter that base, while minimum contribution bases and exceptions can affect the actual bill. These contributions are separate from pension contributions.
For 2026, the pension regulator confirms an IVM contribution of 5.58% from the employer and 4.33% from the employee, with the state contributing 1.75% to bring the pension-system total to 11.66%. The state share is not an extra employer charge. Use these current figures when checking a payroll estimate against older online tables.
The standard 2026 employer schedule totals 26.83%: health 9.25%, IVM 5.58%, family allowances 5%, INA 1.5%, IMAS 0.5%, Banco Popular allocations totalling 0.5%, FCL 1.5% and pension allocations totalling 3%. The actual employer, contribution bases and applicable institutional exceptions matter, and aguinaldo, occupational-risk insurance, provider fees and exit costs require a separate budget.
For ordinary salaried employment, employee deductions are 5.50% for health, 4.33% for IVM and 1% for the Banco Popular allocation feeding the mandatory supplementary pension system, adding to 10.83% before income tax or other lawful deductions. Contribution-base rules can affect lower or partial-month earnings, and the employer's own contribution must not be passed to the employee as an extra deduction.
| Component | Employer | Employee |
|---|---|---|
| Health insurance | 9.25% | 5.50% |
| IVM pension | 5.58% | 4.33% |
| Family allowances | 5% | No ordinary employee share |
| INA | 1.5% in the standard schedule | No ordinary employee share |
| IMAS | 0.5% | No ordinary employee share |
| Banco Popular allocations | 0.5% combined | 1% feeding supplementary pension |
| FCL savings | 1.5% | No ordinary employee share |
| Other supplementary-pension allocations | 3% combined | Employee allocation shown above |
| Standard total | 26.83% | 10.83% |
The table shows a standard schedule. Employer-specific exceptions, minimum bases and the actual payroll period can change the bill, and occupational-risk insurance and annual benefits are separate.
The employer must register and report employment and salary accurately. Health-insurance contributions can use a statutory minimum base even where reported earnings are lower, with specific exceptions. Ask the provider to show the bases, employee and employer shares, reporting period and payment evidence, and do not apply a headline percentage to part-month or low-paid work without checking those rules.
The employer pays 1.5% of the employee's reported monthly salary into the Fondo de Capitalización Laboral throughout employment. Employees can access the balance when employment ends for any reason or after five years with the same employer, with additional statutory withdrawal events. Do not treat an employee's FCL balance as the same thing as the employer's statutory severance calculation.
SUPEN states that the mandatory supplementary pension system receives 4.25% of reported salary: 1% from the employee and 3.25% from employer-funded allocations, with the payroll collection schedule dividing those allocations among several lines. They are already part of the standard contributions, so do not add another 3.25% on top of a complete employer schedule.
Employers must insure workers against occupational risks through the required INS system, and cover applies from the start of employment, including work for only part of a day or week. Confirm the policy, employee declaration and premium for the actual activity. The 1% line labelled INS in the pension collection schedule does not establish the price of the employer's occupational-risk policy.
What an employer of record adds to the employment cost
Budget the provider fee as a third line, next to gross pay and the employer contributions above. Across the market it runs from $99 to $799 per employee per month, or 8 to 20% of salary, and where a quote sits in that range is decided by the work rather than by the country: headcount, how much of the administration you hand over, and whether the provider is pricing a single hire or a team. I treat a quote at the bottom of the range as a question rather than a win, because the cheap number is usually the one with the fewest things inside it.
What the fee buys is the employment itself: the employing entity, the payroll run, the filings and the employer-side administration. What it does not buy is the cost of employing the person. Gross pay, the employer social security contributions, the Christmas bonus and the severance provision are yours, and Costa Rica's employer contribution rate is high enough that the fee is a small share of the total. Ask for a quote that separates the fee from the pass-through costs, priced in colones, because a single blended figure hides which half moves when pay changes.
Average salary in Costa Rica by occupation
Gross monthly earnings of employees per ISCO-08 occupation group, in CRC, from the ILO's official labour statistics. These stored survey figures for Costa Rica have reference year 2025. Use these survey earnings to benchmark an offer before an EOR quote turns it into total employer cost.
| Occupation group | Monthly (CRC) | Approx. USD |
|---|---|---|
| All occupations | 606,508 | $1,205 |
| Managers · ISCO 1 | 1,803,049 | $3,581 |
| Professionals · ISCO 2 | 1,230,853 | $2,445 |
| Technicians and associate professionals · ISCO 3 | 719,254 | $1,429 |
| Clerical support workers · ISCO 4 | 521,904 | $1,037 |
| Service and sales workers · ISCO 5 | 425,786 | $846 |
| Skilled agricultural, forestry and fishery workers · ISCO 6 | 468,455 | $930 |
| Craft and related trades workers · ISCO 7 | 485,060 | $963 |
| Plant and machine operators and assemblers · ISCO 8 | 454,895 | $903 |
| Elementary occupations · ISCO 9 | 339,711 | $675 |
Source: ILOSTAT, the International Labour Organization's statistics database (average monthly earnings of employees, both sexes), reference year 2025.
How to hire through an EOR in Costa Rica
- Step 1
Define your hire
Prepare the role, work location, salary, working hours and target start date.
- Step 2
Confirm the local hiring route
Ask the provider to confirm that its employing arrangement fits this role and location, including any restrictions.
- Step 3
Review the full quote and contract
Check the legal employer, total costs, benefits, responsibilities and exit terms before signing.
- Step 4
Complete onboarding
Coordinate employment documents, required checks, equipment and the payroll cut-off with the EOR.
- Step 5
Keep employment changes coordinated
Manage the work and tell the EOR about proposed pay, leave, contract or termination changes before they take effect.
What should the EOR arrange before your hire in Costa Rica starts?
Confirm the employment terms, work eligibility, payroll and pension arrangements before the start date. Ask which local rules and agreements apply to your employee.
What catches employers out in Costa Rica
The first row is the one that breaks a budget built from a single headline wage figure.
Resolve these points before signing
Ask the provider to answer each of these against the actual role and employee.
| Point | Why it matters |
|---|---|
| Occupation-based minimum pay | Daily, monthly and qualification categories have different amounts |
| Annual bonus | Aguinaldo is due in December and needs a separate budget |
| Current contributions | Use 2026 pension rates and the employer's actual contribution bases |
| Night and mixed shifts | Their ordinary working-time limits are lower than the daytime limit |
| Family leave | Paternity, adoption, bereavement and breastfeeding rights need a documented process |
| 2026 breastfeeding reform | Older labour-code PDFs omit the expanded protection and expression time |
| Ending employment | Notice, severance, accrued benefits and protected status are separate checks |
The sections below explain each point. Confirm any special industry, collective or individual terms before making the offer.
What types of employment contracts exist in Costa Rica?
Costa Rica has no formal probation period, only a rule that statutory notice and severance generally begin after three months of continuous service.
Write down the terms and choose the right duration
Written contracts are the general rule, with limited exceptions. Record the parties, role, place of work, duration, hours, salary, payment arrangements and agreed terms, and give the employee a copy, adding remote-work, benefits and policy details where relevant. Arrange a Spanish version suitable for local administration and make sure the employee understands it. Statutory rights apply even when an employer fails to document the contract.
A fixed term must fit the temporary nature of the work, and permanent work can create an indefinite contract even when a document states an end date. The ordinary fixed-term limit is one year, while services requiring special technical preparation can run up to five years. Renewal and continued work need review against the actual purpose of the job.
| Contract | What to check |
|---|---|
| Indefinite | Use for work that continues as part of the business |
| Fixed term | Temporary purpose; ordinary one-year limit |
| Special technical fixed term | Qualifying technical preparation; statutory limit up to five years |
Set probation and workplace rules
For ordinary indefinite employment, statutory notice and severance generally begin after three months of continuous service, and the ministry describes the earlier period as probation. Wages, social-security duties, accrued benefits and protection from unlawful discrimination still apply. Record any probation arrangement clearly and check protected circumstances before ending employment.
A dismissal based on an alleged employee fault requires a written letter describing the specific facts clearly and in detail, given at dismissal with receipt documented. If the employee refuses it, the employer must submit it to the labour ministry within ten calendar days. Those stated facts define the grounds that can later be argued in court, so review the evidence and any required warnings or protected-status procedure first.
Check classification and ownership
Personal service, pay and subordination are the main indicators of employment, and calling the agreement a services contract does not remove employment rights where those conditions exist. Review who controls the work, schedules and performance, and whether the person operates an independent business, because a remote workplace or invoice alone does not establish contractor status.
The Labour Code requires employees to protect specified technical, commercial and confidential business information. For an EOR hire, also document the rights your business needs in software, designs, inventions and other work, and have the employer explain the transfer or licence through to your company. Review any post-employment restriction separately, because a confidentiality clause alone does not answer every ownership or enforceability question.
Agree remote work before the start
Telework is voluntary and needs a contract or addendum covering conditions, duties and responsibilities. The employer normally provides and maintains equipment and programs and pays the agreed energy costs, with specific rules for voluntary use of personal equipment. The 2025 amendment expressly covers telework abroad and requires extraterritorial occupational-risk cover, and a move abroad also needs its own immigration and tax assessment.
Teleworkers have a right to disconnect outside their agreed hours, protecting rest, leave and personal and family time, with a statutory exception for unforeseen urgent situations that requires the employee's agreement. Set normal contact hours, response expectations and an emergency process in the remote-work policy, and note that cross-border teams should account for the employee's local working hours.
Misclassification risk, and the three indicators
Costa Rica works from three indicators and, like Colombia and Chile, has already closed the remote and invoice arguments. Personal service, pay and subordination are the main indicators of employment, and calling the agreement a services contract does not remove employment rights where those conditions exist. Source: the approved Costa Rican contractor-status guidance, Labour Code via sinalevi.go.cr, checked 18 September 2026.
So review who controls the work, the schedules and the performance, and whether the person actually operates an independent business. A remote workplace or an invoice alone does not establish contractor status. Source: the approved Costa Rican contractor-status guidance, checked 18 September 2026.
What a hirer does about it: the question that gives the honest answer is whether the person runs a business. Do they have other clients, their own tools, their own risk and the freedom to organise the work? If the answer is no on all four, they are an employee and the social security registration is the thing whose absence will be noticed first.
What taxes and social contributions apply in Costa Rica?
The standard employer schedule is 26.83% of salary, spread across nine separate lines, and occupational-risk insurance sits outside it.
Follow a CRC 1,000,000 salary example
This example applies the standard employer schedule to a round salary and adds the aguinaldo reserve.
| Illustrative monthly cost | Amount |
|---|---|
| Gross salary | CRC 1,000,000 |
| Standard employer contributions, 26.83% | CRC 268,300 |
| Salary plus contributions | CRC 1,268,300 |
| Aguinaldo reserve, one twelfth of salary | About CRC 83,333 |
| Budget before insurance, fees and other items | About CRC 1,351,633 |
Applying the standard 26.83% employer schedule gives CRC 268,300 in contributions and a subtotal of CRC 1,268,300, and reserving one twelfth of salary for aguinaldo adds about CRC 83,333 a month. The resulting CRC 1,351,633 budget still excludes occupational-risk insurance, provider fees, extra benefits, overtime and exit costs. Paid-leave planning should avoid counting ordinary salary twice.
Calculate salary tax and take-home pay separately
Salary tax is charged on gross monthly employment income in bands.
| 2026 gross monthly salary band | Marginal tax rate |
|---|---|
| Up to CRC 918,000 | 0% |
| Over CRC 918,000 to CRC 1,347,000 | 10% |
| Over CRC 1,347,000 to CRC 2,364,000 | 15% |
| Over CRC 2,364,000 to CRC 4,727,000 | 20% |
| Over CRC 4,727,000 | 25% |
In 2026, gross monthly employment income up to CRC 918,000 is outside the salary-tax charge, and each rate applies to the income in that band. Eligible child and spouse credits can reduce the calculation.
For a full month at CRC 1,000,000 gross, standard employee contributions of 10.83% are CRC 108,300, and salary tax before credits is CRC 8,200, being 10% of the CRC 82,000 above the exempt band. This leaves an illustrative CRC 883,500 before other deductions. Personal circumstances, tax credits, benefits and payroll adjustments can change the final amount.
What pay and leave should your offer in Costa Rica cover?
Agree pay, working patterns, paid leave and benefits as part of the offer. These affect both your hiring budget and how you plan the employee’s work.
- Paid annual leave: 10 days
- Public holidays: 12 days
- The rest of the year: 343 days
The numbers behind this figure
| Entitlement | Days a year |
|---|---|
| Paid annual leave (statutory minimum) | 10 days |
| Public holidays (national) | 12 days |
| Total statutory paid days off | 22 days |
Source: National government, 2026; National government, 2026. Statutory minimums. Eligibility, accrual and collective agreements can change what an individual employee receives.
How does payroll and compensation work in Costa Rica?
The wage floor is a table of occupations rather than a single number, and the December aguinaldo is a thirteenth salary in all but name.
Match the 2026 minimum to the job
The 2026 monthly minimum for the generic unskilled category is CRC 373,092.30. This is one category rather than a universal floor: general office work is listed at CRC 405,710.70, and other skilled or degree-based roles have different rates, while the daily unskilled rate is CRC 12,436.41. Match the actual duties and pay basis to the official classification before making an offer.
The ministry's occupation list is illustrative, so actual responsibilities can place a job in another category. In 2026, the monthly generic qualified rate is CRC 419,755.80, and the listed university bachelor and licentiate categories are CRC 664,078.07 and CRC 796,921.00. Asterisks distinguish monthly amounts from daily rates in the occupation list. Confirm the required qualification and duties rather than classifying by job title alone.
| Selected official category | 2026 amount | Pay basis |
|---|---|---|
| Generic unskilled | CRC 373,092.30 | Monthly |
| General office work | CRC 405,710.70 | Monthly |
| Generic qualified | CRC 419,755.80 | Monthly |
| University bachelor category | CRC 664,078.07 | Monthly |
| University licentiate category | CRC 796,921.00 | Monthly |
| Unskilled daily category | CRC 12,436.41 | Per ordinary working day |
These are selected categories rather than a complete salary table. Confirm the actual duties and required qualification with the employer.
Use the earnings survey for context
INEC's employment survey reports average gross monthly main-job income of CRC 612,923.57 for employees in April to June 2026, rounded here to CRC 612,924. The measure includes employees with known positive earnings across the survey population, and it is not a full-time-only salary, median or current quote for a specific role. Use it as context alongside occupation, experience and location.
| Survey measure | Period | Value |
|---|---|---|
| Average gross main-job income for employees | April to June 2026 | About CRC 612,924 a month |
The survey includes different hours, occupations and sectors, and it does not establish a current offer for your vacancy.
Agree pay dates and the annual bonus
The pay interval cannot exceed a fortnight for manual workers or a month for intellectual workers and domestic employees. Put the payment basis and dates in the contract and calculate any overtime and deductions for the correct period. A monthly salary budget does not necessarily mean the employee receives one payment each month.
Private-sector employees who complete at least one continuous month with the same employer qualify for the aguinaldo. Add ordinary and overtime earnings from 1 December to 30 November and divide by twelve, then pay it during the first twenty days of December. For a full year at unchanged salary and without extra earnings, it equals one monthly salary.
If the employee worked only part of the bonus year, divide their qualifying earnings by twelve as well, and accrued aguinaldo is payable when employment ends. The ordinary statutory bonus is a December payment, while additional mid-year or performance bonuses depend on the agreement. Budget around one twelfth of qualifying earnings for aguinaldo and check the treatment of leave payments and any extra bonus.
Set out any extra benefits
The offer should distinguish salary, statutory contributions, aguinaldo, paid leave and required insurance from optional benefits such as extra health cover, allowances or a performance bonus. Write down eligibility, payment dates and what happens during leave or at an exit. A benefit promised in the contract can create an obligation beyond the statutory minimum.
What benefits and leave are employees entitled to in Costa Rica?
Statutory annual leave is two weeks after fifty weeks of service, which is the shortest entitlement in this part of the region.
Schedule annual leave and record the balance
Employees earn at least two weeks of paid annual leave after fifty weeks of continuous service with the same employer, and the right also applies to part-time work. The ministry describes the standard entitlement as twelve working days plus two weekly rest days, and pay and scheduling must reflect the actual arrangement. Check any contractual entitlement above this minimum.
For monthly or fortnightly payroll, the ministry calculates two weeks of leave using fourteen days of pay, including weekly rest, while weekly non-commercial payroll generally pays twelve days and weekly commercial payroll includes the rest days. For ordinary non-agricultural work, the statutory calculation uses average ordinary and overtime remuneration over the preceding fifty weeks, and agricultural work has a separate averaging rule.
The employer must schedule leave within the fifteen weeks following completion of the fifty-week qualifying period, and leave taken should be recorded. Splitting, accumulating or replacing leave with cash is restricted, with termination one of the permitted cash-payment cases. If employment ends before fifty weeks, the minimum accrued settlement is one day for each month worked.
Plan holidays and medical absence
Nine holidays have compulsory pay: New Year, 11 April, Maundy Thursday, Good Friday, 1 May, 25 July, 15 August, 15 September and Christmas. The other holidays are 2 August, 31 August and 1 December, and monthly, fortnightly and commercial payroll arrangements affect payment for the latter group. October 12 is a commemoration rather than a statutory holiday. Check the year's calendar and any permitted work exception.
For monthly or fortnightly pay, and weekly pay in commerce, normal pay already includes holidays, so add one ordinary day of pay if the employee works the holiday to reach double pay. Overtime on a holiday paid at double rate is paid at three times the ordinary hourly rate. Weekly-paid non-commercial work has different treatment for holidays without compulsory pay.
For ordinary CCSS-certified sickness, the employer generally pays 50% for the first three days and CCSS pays an eligible subsidy from day four, with a different starting rule for a new incapacity within thirty days of the previous one. The current CCSS calculation uses the preceding twelve reported salaries, excluding salaries affected by earlier incapacity or leave, and its formula normally corresponds to up to 60% for salaried workers. Check eligibility and any agreed top-up.
Apply the current family-leave rules
Five entitlements make up the family-leave picture, and the paternity one is unusual in shape.
| Leave | Ordinary starting point |
|---|---|
| Annual leave | Two weeks after fifty weeks of continuous service |
| Maternity | One month before birth and three afterwards |
| Paternity | Two days a week during the first four weeks |
| Adoption | Three months, with rules for sharing a joint-adoption entitlement |
| Bereavement | Three working days for the first degree; one for the second or third |
The ordinary maternity entitlement is four paid months: one before birth and three afterwards. The statutory payment is equivalent to salary, shared equally by the employer and CCSS under the applicable insurance rules, and contributions and employment benefits continue under the prescribed arrangements. Obtain the required medical certification and check any complications or additional protection.
The ordinary paternity entitlement is two days each week during the first four weeks after birth, giving eight days in total. The 2025 Constitutional Chamber ruling extends access to a non-gestational mother exercising co-maternity in a same-sex family. Apply the leave and payment procedure with the employer and CCSS, and note that it is not a general entitlement to eight consecutive days.
An individual adopter receives three months of paid leave, and in a joint adoption the three-month entitlement can be divided by agreement and taken together or alternately. Timing follows placement for adoption or the relevant final decision, with supporting certification. Separate rules cover a surviving parent or caregiver following the mother's death.
The ordinary entitlement is three paid working days for death of a relative in the first degree of blood relationship or affinity, and one paid working day for the second or third degree. The law also specifies qualifying de facto partners and adoption evidence. Check the relationship, required documents and any better contractual or special entitlement.
Employers cannot refuse time off or deduct wages for qualifying court attendance, justified personal administrative proceedings before the labour ministry, or public-administration disciplinary proceedings. The employee must provide the summons in advance and proof of attendance afterwards. The November 2025 reform expanded this protection, and it is not a blanket right to any personal appointment.
Use the expanded breastfeeding protections
The current Labour Code treats the child's first year as the minimum breastfeeding-protection period, with medically certified extensions every three months while breastfeeding continues. Paid feeding time is one hour per nursing child during an ordinary working day, with permitted ways to take it, and additional time applies during overtime. Adoption-related induction of lactation also has a certified route.
The 2026 rules require at least twenty-five minutes every three working hours for expressing milk, adjustable to medically certified needs. This is paid working time and is separate from the feeding break. Employers with breastfeeding workers must provide a suitable private, hygienic space for feeding, expressing and storing milk under the statutory conditions, so record the arrangement with the employee.
Confirm the required evidence and payment arrangements with the employer. Better contractual benefits and individual medical circumstances can change what the employee receives.
What happens if you need to end employment in Costa Rica?
Discuss the proposed change with the EOR before giving notice or promising an exit payment. Ask it to confirm the procedure, timing and costs for the employee’s circumstances.
The numbers behind this figure
| Obligation | Weeks of salary |
|---|---|
| Statutory notice | 4.3 weeks |
| Statutory severance | 14.4 weeks |
| Total statutory exit cost | 18.7 weeks |
Costa Rica sits at number 43 of 190 countries for statutory exit cost in our Termination Cost Index.
What are the termination and compliance rules in Costa Rica?
Working time is classified by shift rather than by clock hours alone, and misclassifying a schedule changes both the ordinary limit and the overtime bill.
Plan lawful hours and rest
The ordinary daytime limit is eight hours a day and forty-eight a week. For work that is neither dangerous nor unhealthy, an agreed accumulated schedule can extend daytime work to ten hours while keeping the weekly limit at forty-eight. Night and mixed schedules have different limits, and an overseas client's preferred timetable does not remove the local rules.
The ordinary night limit is six hours a day and thirty-six a week, while mixed work is normally limited to seven hours a day and forty-two a week, with the permitted exception for non-dangerous, healthy work. A shift containing at least three and a half hours in the night period is treated as night work, so classify the whole schedule before calculating ordinary and overtime pay.
Work beyond the applicable ordinary limit or a shorter agreed working day generally attracts a 50% premium, and ordinary work plus overtime normally cannot exceed twelve hours in a day, subject to the statutory emergency exception. Overtime is not a permanent substitute for a lawful schedule, and hazardous or unhealthy work has tighter restrictions. Record overtime separately from ordinary wages.
A continuous working day must include at least thirty minutes of rest counted as working time, and time during which the employee remains at the employer's disposal or cannot leave can also count. Different rules can apply to a genuinely split working day, so define the breaks and freedom to leave before treating an interval as unpaid.
Employees are entitled to a full rest day after six consecutive working days. Pay treatment depends on the activity and payment arrangement, because commercial employment and monthly or fortnightly pay include the rest day. Working on the designated rest day can require double pay, and a Saturday or Sunday is not automatically overtime solely because of its calendar name.
| Working-time item | Ordinary rule |
|---|---|
| Daytime | 8 hours a day, 48 a week |
| Night | 6 hours a day, 36 a week; night period 7 p.m. to 5 a.m. |
| Mixed | 7 hours a day, 42 a week, subject to the permitted exception |
| Overtime | 50% premium; ordinary plus overtime normally limited to 12 hours a day |
| Continuous-day break | At least 30 minutes counted as working time |
| Weekly rest | One full day after six consecutive working days |
Accumulated daytime schedules and other statutory exceptions need their own assessment. Check the whole shift rather than applying a weekly limit alone.
Provide a safe and fair workplace
The employer must take measures to protect employees' health and safety. Workplaces with ten or more workers require the prescribed occupational-health commissions, and employers with more than fifty permanent workers have a separate occupational-health office requirement. Assess the actual workplace and workforce with the EOR, and note that remote work also needs suitable equipment, risk prevention and the correct insurance.
Employment discrimination is prohibited on grounds including sex, age, disability, health, sexual orientation, union affiliation and protected corruption reporting, and sexual-harassment prevention and complaint handling require workplace measures. Agree who receives complaints, investigates concerns and protects the employee from retaliation when the client directs the work. A discriminatory dismissal can result in reinstatement.
Protect employee records
Explain what employee data is collected, why it is needed, who receives it and how rights can be exercised. Obtain informed consent where required and document applicable exceptions, access controls, security and retention. Internal databases are not automatically exempt from data-protection law, even where they do not need registration, and medical and other sensitive records need appropriate additional protection.
PRODHAB distinguishes transfers between controllers from processing by service providers, processors and certain companies in the same economic group, and a transfer generally requires informed consent unless a legal exception applies. Determine the actual roles of the employer, your business and payroll vendors, and document the permitted purposes, security and access before sending employee records abroad.
Confirm permission for the work
Foreign nationals need immigration status that permits their work. Temporary residents may carry out only the remunerated activities authorised by the immigration authority, and dependants also need the relevant permission. Specific-occupation and intra-company categories can be restricted to the approved employer, period and conditions. Have the provider confirm eligibility and outstanding documents before committing to a start date.
The digital-nomad category covers qualifying remote services for a person or entity outside Costa Rica, and the official requirements specify foreign monthly income of at least USD 3,000, or USD 4,000 when applying with dependants, with supporting evidence. It is not a substitute for permission to take ordinary employment with a Costa Rican EOR, so assess the planned employer and activity before choosing the immigration route.
Review the exit before giving notice
The Labour Code lists grounds for dismissal without employer liability, including specified serious misconduct, and a business decision to remove a role does not by itself establish such a ground. Confirm the actual facts, required warnings, notice, severance and protections with the employer. Early termination of a genuine fixed-term contract has its own damages rules rather than the ordinary indefinite-contract formula.
For indefinite employment ended without just cause, notice is at least one week for three to six months of service, fifteen days for more than six months up to one year, and one month after one year, and notice can be replaced by the corresponding pay. During notice, the employee receives one paid day each week to seek work. Check protected circumstances and any better terms before giving notice.
Pregnancy, breastfeeding, specified family leave, union protection and unlawful discrimination can restrict dismissal or require special procedures, and for protected maternity cases an employer alleging a serious fault must obtain the prescribed labour-authority approval. A notice payment or probation label does not bypass these protections, and the current breastfeeding-protection period is longer than the period in older guidance.
| Continuous service in ordinary indefinite employment | Minimum notice |
|---|---|
| Less than three months | No ordinary statutory notice under this schedule |
| Three to six months | One week |
| More than six months up to one year | Fifteen days |
| More than one year | One month |
Calculate severance and final payments
For a qualifying indefinite-contract dismissal, severance begins at seven days of salary for three to six months and fourteen days for more than six months but less than one year. Longer service uses the statutory table, whose annual factors range from 19.5 to 22 days and later fall to 20, and compensation is limited to the last eight years. Use the required six-month salary average and fraction rules.
Calculate outstanding wages, accrued aguinaldo, unused leave and any notice or severance due, remembering that accrued bonus and leave remain relevant after resignation or a justified dismissal. Provide the required employment certificate and explain the employee's separate FCL withdrawal process. Do not describe a government-approved universal thirty-day grace period for final payment.
Ask the employer for an itemised calculation showing the exit reason, service, salary average, accrued rights and applicable protections. FCL savings and statutory severance are different items.
How we maintain the guide
We check selected sources monthly and review relevant changes before updating the guide, and facts show their source, review date and applicable period. The 2026 wage schedule, pension rates, breastfeeding reform and the April to June earnings survey have different dates and purposes. A successful source fetch does not verify a legal rule, and unresolved changes need further review.
These are stored source rules, not a case-specific termination calculation. Confirm the applicable procedure and current requirements before acting.
Choose an EOR for your hire in Costa Rica
Compare the employing entity, itemised costs, local support, payroll deadlines and what happens if you change or end the arrangement.
Questions about hiring in Costa Rica
How does an employer of record work in Costa Rica?
An employer of record provides employment and payroll services through a local employer. You agree the role and day-to-day work with the provider. Confirm the employing entity, how the arrangement operates and the responsibilities each party retains. Costa Rican law recognises employment intermediaries and can impose joint liability on the business benefiting from their work. The EOR service label does not settle those responsibilities.
How quickly can an EOR hire start in Costa Rica?
Agree the start date after the provider confirms the employing entity, employee documents, contract, payroll and insurance arrangements, and any work permission. Ask for the remaining steps and expected completion dates. A general onboarding estimate does not establish that a particular hire is ready.
Does an EOR fee include all employment costs?
Ask for separate amounts for salary, employer contributions, occupational-risk insurance, aguinaldo, agreed benefits, service fees, deposits and possible exit costs. The example in this guide uses stated assumptions and does not include every item. Compare the provider's written calculation for your actual hire.
What should I check before signing with a provider?
Confirm the employing entity, responsibilities, work location, contract type, wage category, hours, payroll calculation, leave, immigration, employee support, data handling and ownership of work. Agree how complaints, termination and a future move to your own entity would be handled.
Check the facts behind this guide
Each reviewed fact links to its source and shows its validation date and effective period. Monthly review does not mean that every rule changes monthly. Statistical benchmarks retain their original data periods.
View sourced facts and review dates
| Fact | Value | Source | Effective / data period | Last validated |
|---|---|---|---|---|
| An EOR can employ and pay your Costa Rican hire | An employer of record provides employment and payroll services through a local employer. You agree the role and day-to-day work with the provider. Confirm the employing entity, how the arrangement operates and the responsibilities each party retains. Costa Rican law recognises employment intermediaries and can impose joint liability on the business benefiting from their work. The EOR service label does not settle those responsibilities. | Procuraduría General: Labour Code, consolidated version 64 of 64 | ||
| Check who directs the work and carries employer duties | Ask the provider to explain who signs the contract, pays salary, registers the employee, manages workplace safety and handles an exit. Under Labour Code Article 3, an employer can be jointly liable for an intermediary’s actions; a contractor performing work with its own capital is treated differently. Review the actual arrangement before assuming the provider takes every employment risk. | Procuraduría General: Labour Code, consolidated version 64 of 64 | ||
| Compare employment services with direct hiring | With direct employment, your Costa Rican entity employs the person and can buy payroll or HR support separately. Compare that arrangement with an EOR by looking at employer responsibilities, fees, deposits, employee support and future transfers. A PEO or EOR label does not replace this assessment. There is no universal headcount at which your business must switch models. | Procuraduría General: Labour Code, consolidated version 64 of 64 | ||
| Employment depends on how the work is done | Personal service, pay and subordination are the main indicators of employment. Calling the agreement a services contract does not remove employment rights where those conditions exist. Review who controls the work, schedules and performance, and whether the person operates an independent business. A remote workplace or invoice alone does not establish contractor status. | Procuraduría General: Labour Code, consolidated version 64 of 64 | ||
| Use a written contract with clear working terms | Written contracts are the general rule, with limited exceptions. Record the parties, role, place of work, duration, hours, salary, payment arrangements and agreed terms, and give the employee a copy. Add remote-work, benefits and policy details where relevant. Arrange a Spanish version suitable for local administration and make sure the employee understands it. Statutory rights apply even when an employer fails to document the contract. | Procuraduría General: Labour Code, consolidated version 64 of 64 | ||
| Reserve fixed terms for work that is temporary | A fixed term must fit the temporary nature of the work. Permanent work can create an indefinite contract even when a document states an end date. The ordinary fixed-term limit is one year; services requiring special technical preparation can run up to five years. Renewal and continued work need review against the actual purpose of the job. | Procuraduría General: Labour Code, consolidated version 64 of 64 | ||
| The first three months still carry employment rights | For ordinary indefinite employment, statutory notice and severance generally begin after three months of continuous service. The ministry describes the earlier period as probation. Wages, social-security duties, accrued benefits and protection from unlawful discrimination still apply. Record any probation arrangement clearly and check protected circumstances before ending employment. | Ministry of Labour and Social Security, employment questions | ||
| Document a dismissal for misconduct | A dismissal based on an alleged employee fault requires a written letter describing the specific facts clearly and in detail. Give it at dismissal and document receipt. If the employee refuses it, the employer must submit it to the labour ministry within ten calendar days. Those stated facts define the grounds that can later be argued in court. Review the evidence and any required warnings or protected-status procedure first. | Procuraduría General: Labour Code, consolidated version 64 of 64 | ||
| Agree confidentiality and ownership before work starts | The Labour Code requires employees to protect specified technical, commercial and confidential business information. For an EOR hire, also document the rights your business needs in software, designs, inventions and other work. Have the employer explain the transfer or licence through to your company. Review any post-employment restriction separately; a confidentiality clause alone does not answer every ownership or enforceability question. | Procuraduría General: Labour Code, consolidated version 64 of 64 | ||
| Put remote work, equipment and location in the agreement | Telework is voluntary and needs a contract or addendum covering conditions, duties and responsibilities. The employer normally provides and maintains equipment and programs and pays the agreed energy costs, with specific rules for voluntary use of personal equipment. The 2025 amendment expressly covers telework abroad and requires extraterritorial occupational-risk cover. A move abroad also needs its own immigration and tax assessment. | Ministry of Labour: Telework Law 9738, read with later amendments | ||
| Respect working hours when communicating remotely | Teleworkers have a right to disconnect outside their agreed hours, protecting rest, leave and personal and family time. The statutory exception concerns unforeseen urgent situations and requires the employee’s agreement. Set normal contact hours, response expectations and an emergency process in the remote-work policy. Cross-border teams should account for the employee’s local working hours. | Procuraduría General: Law 10168, digital disconnection | ||
| Minimum pay depends on the occupation | The 2026 monthly minimum for the generic unskilled category is CRC 373,092.30. This is one category, not a universal floor: general office work is listed at CRC 405,710.70, and other skilled or degree-based roles have different rates. The daily unskilled rate is CRC 12,436.41. Match the actual duties and pay basis to the official classification before making an offer. | Ministry of Labour and Social Security, 2026 private-sector minimum wages | Costa Rica: ordinary private employment. Reviewed 14 September 2026. Apply relevant collective terms, special regimes and individual protections. | |
| Use the wage category that matches the duties | The ministry’s occupation list is illustrative: actual responsibilities can place a job in another category. In 2026, the monthly generic qualified rate is CRC 419,755.80; the listed university bachelor and licentiate categories are CRC 664,078.07 and CRC 796,921.00. Asterisks distinguish monthly amounts from daily rates in the occupation list. Confirm the required qualification and duties rather than classifying by job title alone. | Ministry of Labour and Social Security, 2026 private-sector minimum wages | ||
| Average employee earnings were about CRC 612,924 a month | INEC’s employment survey reports average gross monthly main-job income of CRC 612,923.57 for employees in April–June 2026, rounded here to CRC 612,924. The measure includes employees with known positive earnings across the survey population; it is not a full-time-only salary, median or current quote for a specific role. Use it as context alongside occupation, experience and location. | INEC: Continuous Employment Survey, April–June 2026 historical tables | INEC Continuous Employment Survey, April–June 2026. C4 total, employee row 41, column GI; gross current main-job income, known positive earnings. Rounded to the nearest colon for display. | |
| Agree pay dates within the legal limits | The pay interval cannot exceed a fortnight for manual workers or a month for intellectual workers and domestic employees. Put the payment basis and dates in the contract and calculate any overtime and deductions for the correct period. A monthly salary budget does not necessarily mean the employee receives one payment each month. | Procuraduría General: Labour Code, consolidated version 64 of 64 | ||
| Pay the annual aguinaldo by 20 December | Private-sector employees who complete at least one continuous month with the same employer qualify for the aguinaldo. Add ordinary and overtime earnings from 1 December to 30 November and divide by twelve. Pay it during the first twenty days of December. For a full year at unchanged salary and without extra earnings, it equals one monthly salary. | Ministry of Labour and Social Security, employment questions | ||
| Calculate the bonus from earnings in the actual period | If the employee worked only part of the bonus year, divide their qualifying earnings by twelve as well. Accrued aguinaldo is payable when employment ends. The ordinary statutory bonus is a December payment; additional mid-year or performance bonuses depend on the agreement. Budget around one twelfth of qualifying earnings for aguinaldo and check the treatment of leave payments and any extra bonus. | Ministry of Labour and Social Security, employment questions | ||
| Separate statutory rights from extra benefits | The offer should distinguish salary, statutory contributions, aguinaldo, paid leave and required insurance from optional benefits such as extra health cover, allowances or a performance bonus. Write down eligibility, payment dates and what happens during leave or at an exit. A benefit promised in the contract can create an obligation beyond the statutory minimum. | Procuraduría General: Labour Code, consolidated version 64 of 64 | ||
| Health contributions are 9.25% employer and 5.50% employee | For salaried employment, the health-insurance regulation sets employer contributions at 9.25% and employee deductions at 5.50% of the relevant salary base. Ordinary pay, extra remuneration and pay in kind can enter that base. Minimum contribution bases and exceptions can affect the actual bill. These contributions are separate from pension contributions. | CCSS: Health Insurance Regulation, consolidated version 32 of 32 | ||
| The 2026 IVM rates are 5.58% employer and 4.33% employee | For 2026, the pension regulator confirms an IVM contribution of 5.58% from the employer and 4.33% from the employee. The state contributes 1.75%, bringing the pension-system total to 11.66%. The state share is not an extra employer charge. Use these current figures when checking a payroll estimate against older online tables. | SUPEN, pension contributions and FCL guidance | Costa Rica: ordinary private employment. Reviewed 14 September 2026. Apply relevant collective terms, special regimes and individual protections. | |
| A standard contribution estimate is 26.83% of salary | The standard 2026 employer schedule totals 26.83%: health 9.25%, IVM 5.58%, family allowances 5%, INA 1.5%, IMAS 0.5%, Banco Popular allocations totalling 0.5%, FCL 1.5% and pension allocations totalling 3%. The actual employer, contribution bases and applicable institutional exceptions matter. Aguinaldo, occupational-risk insurance, provider fees and exit costs require a separate budget. | Ministry of Agriculture, SEPSA, January 2026 cost model reproducing the CCSS employer schedule | ||
| Standard employee contributions total 10.83% | For ordinary salaried employment, employee deductions are 5.50% for health, 4.33% for IVM and 1% for the Banco Popular allocation feeding the mandatory supplementary pension system. These add to 10.83% before income tax or other lawful deductions. Contribution-base rules can affect lower or partial-month earnings. The employer’s own contribution must not be passed to the employee as an extra deduction. | CCSS: Health Insurance Regulation, consolidated version 32 of 32 | ||
| FCL is a separate employee savings entitlement | The employer pays 1.5% of the employee’s reported monthly salary into the Fondo de Capitalización Laboral throughout employment. Employees can access the balance when employment ends for any reason or after five years with the same employer, with additional statutory withdrawal events. Do not treat an employee’s FCL balance as the same thing as the employer’s statutory severance calculation. | SUPEN, pension contributions and FCL guidance | ||
| Include the supplementary pension without counting it twice | SUPEN states that the mandatory supplementary pension system receives 4.25% of reported salary: 1% from the employee and 3.25% from employer-funded allocations. The payroll collection schedule divides those allocations among several lines. They are already part of the standard contributions; do not add another 3.25% on top of a complete employer schedule. | SUPEN, pension contributions and FCL guidance | ||
| Check contribution bases and payroll registration | The employer must register and report employment and salary accurately. Health-insurance contributions can use a statutory minimum base even where reported earnings are lower, with specific exceptions. Ask the provider to show the bases, employee and employer shares, reporting period and payment evidence. Do not apply a headline percentage to part-month or low-paid work without checking those rules. | CCSS: Health Insurance Regulation, consolidated version 32 of 32 | ||
| Arrange occupational-risk insurance separately | Employers must insure workers against occupational risks through the required INS system. Cover applies from the start of employment, including work for only part of a day or week. Confirm the policy, employee declaration and premium for the actual activity. The 1% line labelled INS in the pension collection schedule does not establish the price of the employer’s occupational-risk policy. | Procuraduría General: Labour Code, consolidated version 64 of 64 | ||
| A CRC 1,000,000 salary starts at CRC 1,268,300 before other costs | For an illustrative salary of CRC 1,000,000 a month, applying the standard 26.83% employer schedule gives CRC 268,300 in contributions and a subtotal of CRC 1,268,300. Reserving one twelfth of salary for aguinaldo adds about CRC 83,333 a month. The resulting CRC 1,351,633 budget still excludes occupational-risk insurance, provider fees, extra benefits, overtime and exit costs. Paid-leave planning should avoid counting ordinary salary twice. | Ministry of Agriculture, SEPSA, January 2026 cost model reproducing the CCSS employer schedule | ||
| Employment income tax uses monthly marginal bands | In 2026, gross monthly employment income up to CRC 918,000 is outside the salary-tax charge. The excess is taxed at 10% up to CRC 1,347,000, 15% up to CRC 2,364,000, 20% up to CRC 4,727,000 and 25% above that. Each rate applies to the income in that band. Eligible child and spouse credits can reduce the calculation. | Ministry of Finance, employment income tax bands for 2026 | Costa Rica: ordinary private employment. Reviewed 14 September 2026. Apply relevant collective terms, special regimes and individual protections. | |
| A salary quote should show take-home pay separately | For a full month at CRC 1,000,000 gross, standard employee contributions of 10.83% are CRC 108,300. Salary tax before credits is CRC 8,200: 10% of the CRC 82,000 above the exempt band. This leaves an illustrative CRC 883,500 before other deductions. Personal circumstances, tax credits, benefits and payroll adjustments can change the final amount. | Ministry of Finance, employment income tax bands for 2026 | ||
| Ordinary daytime work is limited to 8 hours a day and 48 a week | The ordinary daytime limit is eight hours a day and forty-eight a week. For work that is neither dangerous nor unhealthy, an agreed accumulated schedule can extend daytime work to ten hours while keeping the weekly limit at forty-eight. Night and mixed schedules have different limits. An overseas client’s preferred timetable does not remove the local rules. | Procuraduría General: Labour Code, consolidated version 64 of 64 | ||
| Night work runs from 7 p.m. to 5 a.m. | The ordinary night limit is six hours a day and thirty-six a week. Mixed work is normally limited to seven hours a day and forty-two a week, with the permitted exception for non-dangerous, healthy work. A shift containing at least three and a half hours in the night period is treated as night work. Classify the whole schedule before calculating ordinary and overtime pay. | Procuraduría General: Labour Code, consolidated version 64 of 64 | ||
| Ordinary overtime is paid at time and a half | Work beyond the applicable ordinary limit or a shorter agreed working day generally attracts a 50% premium. Ordinary work plus overtime normally cannot exceed twelve hours in a day, subject to the statutory emergency exception. Overtime is not a permanent substitute for a lawful schedule, and hazardous or unhealthy work has tighter restrictions. Record overtime separately from ordinary wages. | Procuraduría General: Labour Code, consolidated version 64 of 64 | ||
| A continuous working day includes a paid meal break | A continuous working day must include at least thirty minutes of rest counted as working time. Time during which the employee remains at the employer’s disposal or cannot leave can also count. Different rules can apply to a genuinely split working day. Define the breaks and freedom to leave before treating an interval as unpaid. | Procuraduría General: Labour Code, consolidated version 64 of 64 | ||
| Provide a weekly rest day | Employees are entitled to a full rest day after six consecutive working days. Pay treatment depends on the activity and payment arrangement: commercial employment and monthly or fortnightly pay include the rest day. Working on the designated rest day can require double pay. A Saturday or Sunday is not automatically overtime solely because of its calendar name. | Procuraduría General: Labour Code, consolidated version 64 of 64 | ||
| There are 12 statutory holidays with different pay rules | Nine holidays have compulsory pay: New Year, 11 April, Maundy Thursday, Good Friday, 1 May, 25 July, 15 August, 15 September and Christmas. The other holidays are 2 August, 31 August and 1 December. Monthly, fortnightly and commercial payroll arrangements affect payment for the latter group. October 12 is a commemoration, not a statutory holiday. Check the year’s calendar and any permitted work exception. | Procuraduría General: Labour Code, consolidated version 64 of 64 | ||
| Monthly-paid staff receive double pay for work on a holiday | For monthly or fortnightly pay, and weekly pay in commerce, normal pay already includes holidays. Add one ordinary day’s pay if the employee works the holiday to reach double pay. Overtime on a holiday paid at double rate is paid at three times the ordinary hourly rate. Weekly-paid non-commercial work has different treatment for holidays without compulsory pay. | Ministry of Labour and Social Security, employment questions | ||
| The statutory annual leave entitlement is two weeks | Employees earn at least two weeks of paid annual leave after fifty weeks of continuous service with the same employer. The right also applies to part-time work. The ministry describes the standard entitlement as twelve working days plus two weekly rest days; pay and scheduling must reflect the actual arrangement. Check any contractual entitlement above this minimum. | Procuraduría General: Labour Code, consolidated version 64 of 64 | ||
| Monthly-paid leave covers 14 days of pay | For monthly or fortnightly payroll, the ministry calculates two weeks of leave using fourteen days of pay, including weekly rest. Weekly non-commercial payroll generally pays twelve days; weekly commercial payroll includes the rest days. For ordinary non-agricultural work, the statutory calculation uses average ordinary and overtime remuneration over the preceding fifty weeks. Agricultural work has a separate averaging rule. | Procuraduría General: Labour Code, consolidated version 64 of 64 | ||
| Schedule leave within 15 weeks of entitlement | The employer must schedule leave within the fifteen weeks following completion of the fifty-week qualifying period. Record leave taken. Splitting, accumulating or replacing leave with cash is restricted; termination is one of the permitted cash-payment cases. If employment ends before fifty weeks, the minimum accrued settlement is one day for each month worked. | Procuraduría General: Labour Code, consolidated version 64 of 64 | ||
| Certified sickness uses employer and CCSS payments | For ordinary CCSS-certified sickness, the employer generally pays 50% for the first three days and CCSS pays an eligible subsidy from day four. A new incapacity within thirty days of the previous one has a different starting rule. The current CCSS calculation uses the preceding twelve reported salaries, excluding salaries affected by earlier incapacity or leave; its formula normally corresponds to up to 60% for salaried workers. Check eligibility and any agreed top-up. | CCSS: Health Insurance Regulation, consolidated version 32 of 32 | ||
| Maternity leave is one month before birth and three after | The ordinary maternity entitlement is four paid months: one before birth and three afterwards. The statutory payment is equivalent to salary, shared equally by the employer and CCSS under the applicable insurance rules. Contributions and employment benefits continue under the prescribed arrangements. Obtain the required medical certification and check any complications or additional protection. | Procuraduría General: Labour Code, consolidated version 64 of 64 | ||
| Paternity leave is two days a week for four weeks | The ordinary paternity entitlement is two days each week during the first four weeks after birth, giving eight days in total. The 2025 Constitutional Chamber ruling extends access to a non-gestational mother exercising co-maternity in a same-sex family. Apply the leave and payment procedure with the employer and CCSS; it is not a general entitlement to eight consecutive days. | Procuraduría General: Labour Code, consolidated version 64 of 64 | ||
| Adoption leave is three months with sharing rules | An individual adopter receives three months of paid leave. In a joint adoption, the three-month entitlement can be divided by agreement and taken together or alternately. Timing follows placement for adoption or the relevant final decision, with supporting certification. Separate rules cover a surviving parent or caregiver following the mother’s death. | Procuraduría General: Labour Code, consolidated version 64 of 64 | ||
| Use the expanded 2026 breastfeeding rules | The current Labour Code treats the child’s first year as the minimum breastfeeding-protection period, with medically certified extensions every three months while breastfeeding continues. Paid feeding time is one hour per nursing child during an ordinary working day, with permitted ways to take it. Additional time applies during overtime. Adoption-related induction of lactation also has a certified route. | Procuraduría General: Labour Code, consolidated version 64 of 64 | ||
| Provide paid expression time and a suitable space | The 2026 rules require at least twenty-five minutes every three working hours for expressing milk, adjustable to medically certified needs. This is paid working time and is separate from the feeding break. Employers with breastfeeding workers must provide a suitable private, hygienic space for feeding, expressing and storing milk under the statutory conditions. Record the arrangement with the employee. | Procuraduría General: Labour Code, consolidated version 64 of 64 | ||
| Bereavement leave is a statutory paid entitlement | The ordinary entitlement is three paid working days for death of a relative in the first degree of blood relationship or affinity, and one paid working day for the second or third degree. The law also specifies qualifying de facto partners and adoption evidence. Check the relationship, required documents and any better contractual or special entitlement. | Procuraduría General: Labour Code, consolidated version 64 of 64 | ||
| Allow qualifying court and labour-ministry attendance | Employers cannot refuse time off or deduct wages for qualifying court attendance, justified personal administrative proceedings before the labour ministry, or public-administration disciplinary proceedings. The employee must provide the summons in advance and proof of attendance afterwards. The November 2025 reform expanded this protection; it is not a blanket right to any personal appointment. | Procuraduría General: Labour Code, consolidated version 64 of 64 | ||
| Ordinary notice depends on completed service | For indefinite employment ended without just cause, notice is at least one week for three to six months’ service, fifteen days for more than six months up to one year, and one month after one year. Notice can be replaced by the corresponding pay. During notice, the employee receives one paid day each week to seek work. Check protected circumstances and any better terms before giving notice. | Procuraduría General: Labour Code, consolidated version 64 of 64 | ||
| Severance has a service-based table and an eight-year limit | For a qualifying indefinite-contract dismissal, severance begins at seven days’ salary for three to six months and fourteen days for more than six months but less than one year. Longer service uses the statutory table, whose annual factors range from 19.5 to 22 days and later fall to 20. Compensation is limited to the last eight years. Use the required six-month salary average and fraction rules. | Procuraduría General: Labour Code, consolidated version 64 of 64 | ||
| Business redundancy is not employee misconduct | The Labour Code lists grounds for dismissal without employer liability, including specified serious misconduct. A business decision to remove a role does not by itself establish such a ground. Confirm the actual facts, required warnings, notice, severance and protections with the employer. Early termination of a genuine fixed-term contract has its own damages rules rather than the ordinary indefinite-contract formula. | Procuraduría General: Labour Code, consolidated version 64 of 64 | ||
| Check pregnancy, leave, union and discrimination protections | Pregnancy, breastfeeding, specified family leave, union protection and unlawful discrimination can restrict dismissal or require special procedures. For protected maternity cases, an employer alleging a serious fault must obtain the prescribed labour-authority approval. A notice payment or probation label does not bypass these protections. The current breastfeeding-protection period is longer than the period in older guidance. | Procuraduría General: Labour Code, consolidated version 64 of 64 | ||
| Settle accrued rights when employment ends | Calculate outstanding wages, accrued aguinaldo, unused leave and any notice or severance due. Accrued bonus and leave remain relevant after resignation or a justified dismissal. Provide the required employment certificate and explain the employee’s separate FCL withdrawal process. Do not describe a government-approved universal thirty-day grace period for final payment. | Procuraduría General: Labour Code, consolidated version 64 of 64 | ||
| A change of employer does not erase existing rights | Substitution of the employer must not harm existing employment contracts. The previous employer remains jointly responsible with the new employer for pre-transfer obligations for six months under the Labour Code. If you later move from an EOR to your own entity, plan continuity, accrued leave, benefits, contributions and the documentation before the transfer date. | Procuraduría General: Labour Code, consolidated version 64 of 64 | ||
| Protect payroll and personnel information | Explain what employee data is collected, why it is needed, who receives it and how rights can be exercised. Obtain informed consent where required and document applicable exceptions, access controls, security and retention. Internal databases are not automatically exempt from data-protection law, even where they do not need registration. Give medical and other sensitive records appropriate additional protection. | PRODHAB, data-protection questions | ||
| Check overseas access before sharing employee records | PRODHAB distinguishes transfers between controllers from processing by service providers, processors and certain companies in the same economic group. A transfer generally requires informed consent unless a legal exception applies. Determine the actual roles of the employer, your business and payroll vendors, and document the permitted purposes, security and access before sending employee records abroad. | PRODHAB, data-protection questions | ||
| Confirm permission for the actual role before the start | Foreign nationals need immigration status that permits their work. Temporary residents may carry out only the remunerated activities authorised by the immigration authority; dependants also need the relevant permission. Specific-occupation and intra-company categories can be restricted to the approved employer, period and conditions. Have the provider confirm eligibility and outstanding documents before committing to a start date. | Procuraduría General: Immigration Law 8764, consolidated version 19 of 19 | ||
| The digital-nomad route is for paid work supplied abroad | The digital-nomad category covers qualifying remote services for a person or entity outside Costa Rica. The official requirements specify foreign monthly income of at least USD 3,000, or USD 4,000 when applying with dependants, with supporting evidence. It is not a substitute for permission to take ordinary employment with a Costa Rican EOR. Assess the planned employer and activity before choosing the immigration route. | Costa Rican Tourism Institute, digital-nomad requirements | ||
| Agree workplace safety duties with the employer | The employer must take measures to protect employees’ health and safety. Workplaces with ten or more workers require the prescribed occupational-health commissions; employers with more than fifty permanent workers have a separate occupational-health office requirement. Assess the actual workplace and workforce with the EOR. Remote work also needs suitable equipment, risk prevention and the correct insurance. | Procuraduría General: Labour Code, consolidated version 64 of 64 | ||
| Prevent discrimination and provide a complaint process | Employment discrimination is prohibited on grounds including sex, age, disability, health, sexual orientation, union affiliation and protected corruption reporting. Sexual-harassment prevention and complaint handling require workplace measures. Agree who receives complaints, investigates concerns and protects the employee from retaliation when the client directs the work. A discriminatory dismissal can result in reinstatement. | Procuraduría General: Labour Code, consolidated version 64 of 64 | ||
| Monthly source checks support reviewed updates | We check selected sources monthly and review relevant changes before updating the guide. Facts show their source, review date and applicable period. The 2026 wage schedule, pension rates, breastfeeding reform and April–June earnings survey have different dates and purposes. A successful source fetch does not verify a legal rule; unresolved changes need further review. | Procuraduría General: Labour Code, consolidated version 64 of 64 |