Costa Rica: A Guide to Prevent Collapse During Coronavirus

Emily Kuhnert April 20, 2020
Subscribe to get daily country updates
on the COVID-19 crisis

By submitting this form, you agree to receive the requested information, as well as occasional communications regarding Papaya Global's products, services, and events. You can unsubscribe at any time.

We have gathered information on what measures you can take as an employer in Costa Rica to help preserve your employees while keeping your business intact. As more information comes in, we will update this post.

If you have any questions on the impact of Coronavirus on labor laws, visit our Linkedin AMA post and leave us your questions in the comment section and we will reply.

[AMA] Impact of Coronavirus on Labor Laws

Updated: April 20, 2020 

In Costa Rica, the government has declared the labor laws regarding force majeure apply as Costa Rica has declared a national emergency.  This means that employers are able to suspend work but must continue to pay employee wages unless the employer submits the proper noticed needed.

In Costa Rica, Employee’s health is considered sensitive information under the Data Privacy Law, and therefore not something that the employer is not able to disclose to others.  If an employee is infected, the employer is obligated to inform their employees of a possible exposure to the virus, however, the sick person must remain unnamed.

Social Security Contributions: The minimum tax base has been decreased by 25%. In addition, interest rates for payments to social security have been reduced.

National Insurance: For companies with 30 employees are less- the occupational risk rate has been reduced.

Wages: If wages are reduced by 20%, normal working hours should be reduced by 50%.  If wages are reduced by 60%, normal working hours should be reduced by 75%.

Papaya Global payroll platform lets you:

  • Automate payroll with zero processing errors
  • Manage global payroll, PEO & contractors via one platform
  • Make cross-border payments in 100+ countries