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Discover global hiring strategies from leading recruitment platforms
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Speed up your global expansion! Expand smartly in 150+ countries with the #1 rated EOR globally.
Explore Multiplier EOR
Your guide to the employment landscape, working customs and local labor laws in Costa Rica.
Capital
San José
Currency
Costa Rican colón (CRC)
Languages
Spanish
GDP per Capita
$13,089.86
Employer Tax
26.5%
Payroll Frequency
Monthly
Costa Rica holds the rank for second in Latin America and 15th in the world for retaining local talent. With progressive industrialization and economy, Costa Rica has developed better opportunities for its people.
Major economic hubs:
San José, Puerto Limón, Alajuela, Heredia
Skills in demand:
Local: 1
World: 413
Local: 2
World: 1308
Local: 3
World: 2122
Local: 4
World: 4270
Local: 5
World: 4775
1,426,000
MRI Caricam, Doris Peters & Asociados, DyN
Top Local Job Boards:
Top Local Job Boards
Number of LinkedIn users:
Number of LinkedIn users
Top Recruitment Agencies:
Average salary data of some job titles in Costa Rica:
| Job Title | Average Monthly Salary (CRC) | Average Monthly Salary (USD) |
| Financial Manager | 4,690,000 CRC | 7119.08 USD |
| General Manager | 4,260,000 CRC | 5661.87 USD |
| Business Development Manager | 3,670,000 CRC | 5570.79 USD |
| Financial Analyst | 3,060,000 CRC | 4250.20 USD |
| Business Analyst | 2,800,000 CRC | 3992.15 USD |
| Project Manager | 2,630,000 CRC | 3339.44 USD |
While onboarding any individual from Costa Rica, the employer should know about the employment terms, Labor laws, deductions, and benefits. This section has all the necessary information that employers can use.
According to the Costa Rica Labor Laws, an Employment contract is necessary and should be in Spanish or English mentioning all the terms and conditions of the employer. The contract has to be provided within one month of commencement.
The probation period in Costa Rica is 90 days.
| Date | Name | Type |
| 1 Jan | New Year’s Day | National holiday |
| 6 Apr | Maundy Thursday | National holiday, Christian |
| 7 Apr | Good Friday | National holiday, Christian |
| 10 Apr | Battle of Rivas | National holiday |
| 1 May | Labor Day / May Day | National holiday |
| 24 Jul | Annexation of Guanacaste | National holiday |
| 2 Aug | Our Lady of Los Ángeles | Non-Compulsory Payment Holiday |
| 14 Aug | Mother’s Day | National holiday |
| 3 Sep | Day of the Black Person and Afro-Costa Rican Culture | Non-Compulsory Payment Holiday |
| 15 Sep | Independence Day | National holiday |
| 1 Dec | Day of Abolition of the Army | Non-Compulsory Payment Holiday |
| 25 Dec | Christmas Day | National holiday, Christian |
| Type of Leave | Time Period | Mandatory |
| Annual Leave | 14 days | Yes |
| Sick Leave | First 3 days by the employer with 50% of the regular salary, next is compensated by Social Security Contribution | Yes |
| Maternity Leave | 112 days | Yes |
Leave Compliance
Payroll cycle
The payroll cycle is Monthly in Costa Rica.
Minimum wage
In Costa Rica, the minimum wage varies from CRC10,875.11 to CRC696,873.72 per day for Unskilled workers to Technical Workers (University graduates), respectively.
Overtime pay
The standard working hours in Costa Rica are 8 hours a day and 48 hours a week. Overtime in the country is termed as exceptional, and an individual is allowed to extend working hours only on high necessity. The overtime pay is generally 50% of the regular daily wage. However, overtime on a holiday must be compensated at twice the regular wage.
| Type of Contribution | Contribution |
| Health and Maternity | 9.25% |
| Basic Pension Scheme | 5.25% |
| Banco Popular Employer Fee | 0.25% |
| Family Assignations | 5.0% |
| Social Aid (IMAS) | 0.5% |
| INA | 1.5% |
| Contribution from Banco Popular Employer | 0.25% |
| Labor Capitalization Fund | 3.00% |
| Complementary Pension Fund | 0.5% |
| National Insurance Institute (INS) | 1.0% |
| Category | Contribution |
| Medical and Maternity | 5.5% |
| Disability, Old age and Death Benefits | 4% |
| Workmans Savings | 1% |
| Annual Income (CRC*) | Tax Rate |
| Ranges from 0 to 3,836,000 CRC | 0% |
| Ranges from 3,836,000 to 5,729,000 CRC | 10% |
| Ranges from 5,729,000 to 9,555,000 CRC | 15% |
| Ranges from 9,555,000 to 19,150,000 CRC | 20% |
| 19,150,000 and above CRC | 25% |
*CRC is Costa Rica Colones.
Standard rate of VAT in Costa Rica is 13%.
The 13th-month pay in Costa Rica is mandatory.
In Costa Rica, either the employer or the employee can terminate the employment contract without any responsibility.
The notice period in Costa Rica is 14 days.
The severance pay is the average earning of the individual in the last six months of service in Costa Rica.
In order to stay and work in Costa Rica, individuals have to get a “Special Category Permit”. This permit allows the individual to stay and work in Costa Rica under the Ministry of Labour and Social Security.
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Overtime Pay
Minimum Wage
Overtime Pay
Visa and Immigration
Special Category Permit includes the following;
By use case
By team
By company size
Costa Rica
