Overview

Capital
San José
Currency
Costa Rican Colón (CRC)
Date Format
dmy

Taxes

Employer

Employer Payroll Tax

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)
19.83% Total Employment Cost
Employee

Employee Payroll Taxes

5.50%
Medical & Maternity
3.84%
Disability, Old Age & Death Benefits
1%
Workmens Savings Banks
10.34% Total Employee Cost

Employee Income Tax

0.00%
Up to 799,000
10.00%
799,000 - 1,999,000
15.00%
Over 1,999,000
Employer Taxes
3 HIGHEST
3 LOWEST
Brazil
Uruguay
Czech Republic
Costa Rica
Chile
Myanmar
South Africa
66.17%
34.12%
34%
19.83%
3.35%
3%
2%
Employee taxes
3 HIGHEST
3 LOWEST
Romania
Netherlands
Montenegro
Costa Rica
Indonesia
Azerbaijan
Myanmar
45%
27.65%
24%
10.34%
4%
3%
2%

Minimum Wage

General

Minimum wage is between $322 and $900 depending on the level of education required.

Minimum wage (per month)
$2391
$2025
$1996
$556
$49.14
$47
$41
Luxembourg
Victoria
New South Wales
Costa Rica
Jamaica
Malawi
Ghana
3 HIGHEST
3 LOWEST

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%.

Payroll Contributions

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%.

Pension Fund

No pension fund.

Leave

Vacation days
Public holidays
3 HIGHEST
3 LOWEST
Myanmar
Austria
Brazil
Costa Rica
Trinidad & Tobago
Shanghai
Federal
30
16
46
30
13
43
30
13
43
12
11
23
13
13
11
11
10
10
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.

Maternity leave (days)
410
365
365
88
50
45
0
Bulgaria
Montenegro
Serbia
Costa Rica
Qatar
United Arab Emirates
Federal
3 HIGHEST
3 LOWEST
Paternity Leave

8 days of paternity leave

Parental Leave

No specific laws

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.

Notice Period

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.

VAT

General

13%

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