Employer Payroll Tax
Employee Payroll Taxes
Employee Income Tax
The minimum wage ranges from 10,652.48 – 682,607.00 (CRC) per month depending on the employee’s skill and education level.
Employees in Costa Rica receive their salary once a month.
The 13th salary is equal to a month’s pay and should be paid to the employee no later than the 20th of December.
The maximum number of hours an employee can work is 48 hours per week. Nighttime workers, 7p.m.-5a.m., may only work a maximum of 36 weekly hours.
Over 48 hours in a week is considered overtime and is paid at 150% regular wages. Pay for work on holidays is at 200%. The maximum overtime allowed to perform daily is 4 hours.
All employees who have 50 weeks of continuous employment have the right to 2 weeks’ vacation (12 days) plus 2 days of rest.
There are 11 public holidays.
The employer and social security each must pay the employee 50% of their salary for the first 3 days of sick leave. From the 4th day on, social security pays the employee 60% of their salary, and the employer is no longer obligated to pay.
Pregnant employees receive 4 months of paid maternity leave; 1 month of prenatal leave and 3 months of postpartum leave. 50% of the payments are paid by the employer and the other 50% is paid by the CCSS (Costa Rican Social Security Fund).
Private sector employees are not entitled to receive paternity leave.
Private sector employees are not entitled to receive parental leave.
In order to terminate an employee just cause must be given.
If the employer requests a dismissal letter, the employer is obligated to present one, whatever the cause of termination was.
|Duration of Employment||Notice Period|
|0 – 3 months||No notice required|
|3 – 6 months||1 week|
|6 months – 1 year||15 days|
|More than 1 year||1 month|
|Duration of Employment||Severance Pay (days)|
|3 – Less than 6 months||7|
|More than 6 months – Less than 1 year||14|
|7 – 9 years||22|
|13 years and on||20|