Overview

Capital
San José
Currency
Costa Rican Colón (CRC)
Date Format
dd/mm/yyyy

Taxes

Employer

Employer Payroll Tax

9.25%
Health and Maternity
5.25%
Basic Pension Scheme
0.25%
Banco Popular Employer Fee
5.0%
Family Asignations
0.5%
Social Aid (IMAS)
1.5%
INA
0.25%
Contribution from Banco Popular Employer
1.50%
Labor Capitalization Fund
2.00%
Complementary Pension Fund
1.0%
National Insurance Institute (INS)
26.5% Total Employment Cost
Employee

Employee Payroll Taxes

5.50%
Medical & Maternity
4.0%
Disability, Old Age & Death Benefits
1.0%
Workmens Savings Banks
10.5% Total Employee Cost

Employee Income Tax

0.0%
0-840,000 CRC
10.0%
840,000- 1,233,000 CRC
15.0%
1,233,001– 2,163,000 CRC
20.0%
2,163,001 – 4,325,000 CRC
25%
4,325,001 and above
Employer Taxes
3 HIGHEST
3 LOWEST
Brazil
China
Slovakia
Costa Rica
South Africa
Georgia
Macedonia
82.39%
41.12%
37.2%
26.5%
2%
2%
0%
Employee taxes
3 HIGHEST
3 LOWEST
Romania
Macedonia
Netherlands
Costa Rica
Georgia
Belarus
Ukraine
45%
28%
27.65%
10.5%
2%
1%
0%

Minimum Wage

General

The minimum wage ranges from 10,652.48 – 682,607.00 (CRC) per month depending on the employee’s skill and education level.  

Minimum wage (per month)
$4000
$2663
$2491
$556
$47
$36.80
$2.33
Geneva
Luxembourg
Australia
Costa Rica
Malawi
Angola
Venezuela
3 HIGHEST
3 LOWEST

Payroll

Payroll Cycle

Employees in Costa Rica receive their salary once a month.

13th Salary

The 13th salary is equal to a month’s pay and should be paid to the employee no later than the 20th of December.  

Working Hours

General

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. 

Overtime

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.

Leave

Paid Time Off

All employees who have 50 weeks of continuous employment have the right to 2 weeks’ vacation (12 days) plus 2 days of rest.  

Vacation days
Public holidays
3 HIGHEST
3 LOWEST
Brazil
Peru
Albania
Costa Rica
Michigan
China
Federal
30
13
43
30
12
42
28
14
42
12
11
23
2
11
13
5
7
12
10
10
Public Holidays

There are 11 public holidays.

Sick Days

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.  

Maternity Leave

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). 

PAID MATERNITY LEAVE (DAYS)
410
365
365
120
45
30
0
Bulgaria
Serbia
Albania
Costa Rica
United Arab Emirates
Tunisia
Federal
3 HIGHEST
3 LOWEST
Paternity Leave

Private sector employees are not entitled to receive paternity leave.  

Parental Leave

Private sector employees are not entitled to receive parental leave.  

Termination

Termination Process

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.

Notice Period
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 
Severance Pay
Duration of Employment  Severance Pay (days) 
3 – Less than 6 months   
More than 6 months – Less than 1 year  14  
1 year  19.5   
year  20  
years  20.5  
years  21  
years  21.24 
6 years  21.5 
7 – 9 years  22 
10 years  21.5 
11 years  21 
12 years  20.5 
13 years and on  20 
Probation Period

3 months

VAT

General

13%

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