Costa Rica is a leading Central American hub for services and nearshoring, with a well-educated, bilingual workforce and a mandatory 13th-month bonus. All-in employer cost runs around 1.37x the gross salary. Here is what to know before your first Costa Rican hire.
Employment runs under the Labour Code, with mandatory enrolment in the social-security fund (CCSS) and a statutory 13th-month bonus (aguinaldo) paid in December. Written contracts are standard.
Minimum wages are set by job category and revised periodically*, so the applicable rate depends on the role.
Monthly or biweekly, plus a mandatory aguinaldo (13th month) paid in December.
Around 9 to 11 public-holiday days a year, some paid only for certain workers.
Written contracts are standard. A probationary period of up to three months is common.
Employer contributions to the CCSS and related funds come to roughly 26.5% of salary, and with the aguinaldo and other accruals the all-in load reaches around 37%.
The aguinaldo is a statutory 13th-month payment based on the year's average salary, due in the first days of December.
Employees pay a CCSS share plus income tax on a progressive scale, withheld at source. Withholding is the employer's responsibility, which under EOR means ours.
Two weeks of paid vacation after 50 weeks of continuous work.
Four months of maternity leave, funded jointly by the employer and the CCSS.
Paid partly by the employer and partly by the CCSS after a short waiting period.
Paid paternity leave and leave for family events are provided by law.
Notice (preaviso) runs from a week up to a month by tenure, or pay in lieu.
Severance (cesantÃa) accrues by tenure, roughly up to about three weeks of pay per year, capped at eight years, on dismissal without cause.
A period of up to three months is common, with simpler termination during it.
A contractor working like an employee can be reclassified, with back CCSS contributions and severance liability.
*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.
Compliant Costa Rican employment contract, payroll, CCSS, and the aguinaldo, handled. One invoice, flat $399 per month.