Employer Payroll Tax
Employee Payroll Taxes
Employee Income Tax
Minimum wage is between $322 and $900 depending on the level of education required.
Full time employment is considered 48 hours weekly, and 8 hours daily.
Over 48 hours in a week is considered over time, and paid at 150% regular wages. Pay for work on holidays is at 200%.
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%.
No pension fund.
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.
8 days of paternity leave
No specific laws
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.
It is common practice to give the employer 30 days notice.
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.