Current Region & Language
Current Region & Language
Current Region & Language
Currency
Costa Rican Colon (CRC)
Employer Taxes
Approximately 26.5% of gross salaries, covering social security.
Payroll Frequency
Biweekly or Monthly
Language
Spanish
Date Format
DD/MM/YYYY
Costa Rica By The Numbers
5 million
Population
CRC 30 trillion
GDP
7
National Holidays
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Weekly Working Hours
National Holidays
Leave
Employees are entitled to holiday leave, sick leave, maternity leave, and paternity leave, with specific provisions for each type of leave based on employment status and length of service.
Employment Contracts
Employers are required to provide written employment contracts and policies that outline the terms and conditions of employment, including job responsibilities, compensation, benefits, and workplace expectations, in compliance with applicable labor laws.
Types of Employment
Employees, temporary agency workers, and independent contractors are all recognized types of employment.
Employment Costs
There are no specific requirements regarding employment costs.
IC Class Factors
A number of factors are used to determine an IC status: Degree of control, subordination, exclusivity, economic risk of individual, integration into the organisation, subcontracting of work.
Labor Leasing
There are no specific requirements regarding labor leasing.
Minimum Wage Requirements
The government sets the general minimum wage requirements normally every semester of each calendar year.
Medical Benefits
Sick pay due to non-work-related illness or injury depends on the Personnel’s years of employment and shall be paid by the Employer for the first 3 days and invoiced to the Client. Social Security in Costa Rica covers for sick leave pay of 60% of the salary from the 4th day up to 52 weeks.
Sick pay due to work-related illness or injury shall be paid by the Employer (under specific percentages and rules) and invoiced to the Client. Social Security covers sick pay if illness or injury is work related, under specific rules according to the type and length of disability, if illness or injury is work-related. There are 5 different types of categories: (i) total permanent disability; (ii) partial permanent disability; (iii) temporary disability; (iv) Indefinite-Term disability; (v) death.
Probationary Periods
There is no probation for fixed-term contracts.
Probation for all personnel under an indefinite-term contract is for up to 3 months.
Termination Notice
Personnel must be provided with notice based on their length of employment: 1-week notice for those with 3 to 6 months of service, 15-day notice for those with 6 months to 1 year, and 1-month notice for those with 1 year or more of service.
Severance
Severance is due in case of termination of an indefinite-term contract without just cause by the Employer and is equivalent to 7 days of salary from 3 to 6 months of service; 14 days of salary from 6 months to 1 year of service; 19 to 22 days of salary for contracts exceeding 1 year.
For fixed-term contracts, if terminated prematurely, 1 day of salary for each 7 days of continuous work, or fraction is due and in no case, severance can be shorter than 3 days of salary. For fixed-term Contracts of 6 months or exceeding 6 months, severance cannot be shorter than 22 days of salary. Depending on the term of the contract, Personnel may claim for extra damages (50% of salaries not earned due to early termination).
Pre-hire Checks
Immigration checks are required for expatriates, and personal information of personnel must be handled in accordance with Data Protection Law, with consent from the applicant. Specific consent is needed for sensitive information, such as health data for health insurance benefits. Criminal and credit checks can be conducted only for certain job positions, as permitted by law. Pregnancy tests are prohibited by law, and drug tests are allowed only for specific job positions under strict regulations. Medical exams or health-related tests are not mandatory but must be covered by the employer if requested, and personnel are obligated to attend.
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The information provided on this website is for general informational purposes only and is subject to change without notice. The content on this website is not intended to be a substitute for professional legal advice, diagnosis, or treatment. While we strive to keep the information up to date and accurate, People 2.0 makes no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
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