Costa Rica is positioned as the second highest in Latin America and 15th globally in terms of retaining local talent. Through its advancing industrialization and growing economy, the country has successfully cultivated enhanced prospects for its populace.
Employing in Costa Rica
When onboarding an individual from Costa Rica, it's important for the employer to be familiar with employment terms, labor laws, deductions, and benefits. This segment contains all the essential information that can be utilized by employers.
Employee Contract
As outlined by Costa Rica's Labor Laws, it is imperative to have an Employment contract that is either in Spanish or English. This contract must encompass all the terms and conditions set by the employer and is required to be furnished within the initial month of commencement.
Probation Period
In Costa Rica, the probationary period spans a duration of 90 days.
Employee Leaves
- Annual Leave — 14 days
- Sick Leave — First 3 days by the employer with 50% of the regular salary, next is compensated by Social Security Contribution
- Maternity Leave — 112 days
Payroll Cycle
In Costa Rica, the payroll is processed on a monthly basis.
Minimum Wage
Within Costa Rica, the minimum wage ranges from CRC10,875.11 per day for unskilled workers to CRC696,873.72 per day for technical workers, including university graduates.
Overtime Pay
In Costa Rica, the regular work schedule consists of 8 hours per day and 48 hours per week. Overtime in the country is considered exceptional and can only be extended when there is a compelling need. Typically, overtime pay amounts to 50% of the regular daily wage. However, on holidays, overtime must be remunerated at twice the standard wage.
Bonus — 13th Month Pay
In Costa Rica, the provision of a 13th-month pay is obligatory.
Employee Benefit
- Health Insurances
- Pension Scheme
- Bonuses
- Leaves
- Allowances
VAT
The prevailing Value Added Tax (VAT) rate in Costa Rica stands at 13%.
Termination Process
In Costa Rica, either the employer or the employee can end the employment agreement without incurring any obligations.
Notice Period
In Costa Rica, the stipulated notice period is 14 days.
Severance Pay
The severance pay is calculated based on the individual's average earnings during the final six months of their service in Costa Rica.
Visa and Immigration
To reside and work in Costa Rica, individuals are required to obtain a "Special Category Permit." This permit grants authorization to live and work in Costa Rica under the oversight of the Ministry of Labour and Social Security.
