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Employer of Record in Costa Rica
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Costa rica Fast Facts
Employee benefits in Costa Rica
Employers are legally required to provide the following benefits under Costa Rican labor law:
- Caja Costarricense de Seguro Social (CCSS): Mandatory healthcare and pension contributions provide coverage for illness, maternity, disability, and retirement. Employers contribute approximately 26.33% of gross salary, while employees contribute around 10.34%.
- National Insurance Institute (INS): Employers must also insure workers for occupational risks through the INS (Instituto Nacional de Seguros).
Private healthcare and supplementary insurance are common among professional employees. As your employer of record in Costa Rica, we can advise on cost-effective group insurance and wellness programs tailored to your workforce.
Bonuses and additional payments
Beyond regular monthly wages, employees in Costa Rica receive additional compensation such as the mandatory 13th-month salary, known as "Aguinaldo." This payment is typically disbursed between December 1st and 20th, as stipulated in the labor code, and is calculated based on the employee's annual earnings. Employers are required to adhere to the agreed-upon schedules for these payments to maintain compliance with labor regulations.
Annual leave
Employees in Costa Rica are entitled to paid vacation leave after completing 50 consecutive weeks of employment. The statutory entitlement is two weeks (or 12 working days), which must be granted within the following 50 weeks. This leave is fully paid and must be taken at a time agreed upon between employer and employee.
Additional leave may be offered as part of an employment contract, though it is not required by law. Some employers provide more generous time off to attract and retain skilled professionals.
Unused vacation cannot be carried over indefinitely and must be honored within the legal timeframe. Payment in lieu of unused vacation is permitted only upon termination of employment.
Sick leave
Personal and sick leave are governed by the Costa Rican Labor Code. Employees are entitled to paid sick leave, with the first three days compensated at 50% by the employer and 50% by the Caja Costarricense de Seguro Social (the Costa Rican Social Security Fund, or CCSS). From the fourth day onward, the CCSS covers 60% of the employee's salary, provided a medical certificate is submitted.
Maternity leave
In Costa Rica, maternity leave includes four months of paid leave (one month before and three months after birth), with payment split between the employer and the Caja Costarricense de Seguro Social.
Disclaimer: The information provided on or through this website is for informational purposes only and does not constitute legal advice. Safeguard Global expressly disclaims any liability with respect to warranty or representation concerning the information contained herein, including the lost essence, interpretation, accuracy and/or completeness of the information in transit and language translation.


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