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Country hiring guide

Hiring in Costa Rica 🇨🇷

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.

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Capital citySan José
CurrencyCosta Rican colón (CRC)
LanguagesSpanish
Population~5.2 million
Payroll frequencyMonthly (or biweekly)
VAT standard rate13%
Employer burden*~37% of gross
TGTC flat EOR fee$399/mo · Tier A
Overview

Employing in Costa Rica

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 wage

  • Varies by occupation
  • Unskilled ~CRC 12,237/day (2025)

Payroll cycle & extra pay

  • Monthly or biweekly
  • Aguinaldo (13th) mandatory by 20 Dec

Public holidays

  • ~11-12 holidays; 9 paid mandatory*

Onboarding & probation

  • Trial period up to 3 months
  • Written contract recommended
Employer costs

What you pay on top of salary

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%.

Employer contribution*Rate
CCSS health (SEM)9.25%
Pension (IVM)5.42%
FODESAF5%
Labor capital fund (FCL)1.5%
INA training1.5%
IMAS & Banco Popular0.75%

Aguinaldo

The aguinaldo is a statutory 13th-month payment based on the year's average salary, due in the first days of December.

Employee-side taxes

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.

Types of leave

Statutory leave in Costa Rica

Annual leave

  • 2 weeks after 50 weeks worked

Maternity & parental leave

  • Maternity 4 months (1 pre, 3 post)
  • Paternity ~8 days*

Sick leave

  • Employer pays ~50% first 3 days
  • CCSS covers ~60% thereafter*

Other leave

  • Nursing breaks for new mothers*
Employment termination

Ending employment in Costa Rica

Notice

  • 1 week (3-6 mo), 2 weeks (6-12 mo)
  • 1 month (over 1 year)

Severance

  • Auxilio de cesantia by tenure
  • ~20 days pay/year, capped 8 years

Probation

  • First 3 months: no notice/severance

Contractor risk

  • Substance-over-form test
  • Back CCSS & benefits owed

*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.

Employ in Costa Rica without opening an entity

Compliant Costa Rican employment contract, payroll, CCSS, and the aguinaldo, handled. One invoice, flat $399 per month.

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