Overview
Capital
San JoséCurrency
Costa Rican Colón (CRC)Date Format
dmyTaxes
Employer
9.25% - Medical & Maternity
5.08% - Disability, Old Age & Death Benefits
0.50% - Family Welfare Programs
0.50% - Workmens Savings Banks
0.50% - INA (National Institute of Learning
0.50% - IMAS (Institute of Social Welfare)
0.50% - Labor Capitilization
3.00% - INA (National Institute of Security)
5.08% - Disability, Old Age & Death Benefits
0.50% - Family Welfare Programs
0.50% - Workmens Savings Banks
0.50% - INA (National Institute of Learning
0.50% - IMAS (Institute of Social Welfare)
0.50% - Labor Capitilization
3.00% - INA (National Institute of Security)
Employee
5.50% - Medical & Maternity
3.84% - Disability, Old Age & Death Benefits
1% - Workmens Savings Banks
0.00% - Up to 799,000
10.00% - 799,000 - 1,999,000
15.00% - Over 1,999,000
3.84% - Disability, Old Age & Death Benefits
1% - Workmens Savings Banks
0.00% - Up to 799,000
10.00% - 799,000 - 1,999,000
15.00% - Over 1,999,000
Minimum Wage
General
Minimum wage is between $322 and $900 depending on the level of education required.
Paid Time Off
Vacation days
Employees are entitled to one day of vacation for every month of employment, and two weeks after 50 weeks of work.
Sick days
For the first three days of an employees sick leave are paid (50% by the employer, and 50% by social security). From the 4th day the employer is not obligated to pay, and social security pays 60% of salaries. In order to receive payments the employee must submit a medical certificate to the Social Security Administration.
Maternity Leave
Mothers are allowed 120 days' paid maternity leave, the cost of which is split between the employer and the social security fund. The standard arrangement is to take 30 days before the birth and 90 days afterwards.
Paternity Leave
8 days of paternity leave
Parental Leave
No specific laws
Working Hours
General
Full time employment is considered 48 hours weekly, and 8 hours daily.
Overtime
Over 48 hours in a week is considered over time, and paid at 150% regular wages. Pay for work on holidays is at 200%.
Mandatory Benefits
Pension Fund
No pension fund.
Social Security
Caja, the social security system in Costa Rica is mandatory and provides employees with free health care, sick leave, disability pensions and retirement benefits. Employees contribute 24.83% of workers wages, and employee contributes 10.34%.
Termination
Termination Process
Employers can terminate contracts in the first three months, or afterwards because of misconduct. Notice must be given in writing, and be provided as follows:
* From 3-6 months of employment 1 week of notice is required.
* From 6 months - 1 year, 2 weeks of notice is required.
* After 1 year, 1 month notice is required.
Advance Notice
It is common practice to give the employer 30 days notice.
Severance Pay
Employees who have been terminated with cause are entitled to the part of the Christmas bonus already earned and payment for the vacation days that have been acquired and not used. For employees who have been terminated without a cause, they are also entitled to additional payments.
* 3-6 months of employment: 7 days payment
* 6 months - 1 year of employment: 14 days payment
* After 1 year: 19.5 days payment
* From years 1-8, 0.5 days payment is added each year until capped at 22 days.
Payroll
General
between 13 - 15% standard rate.
