Expand your global workforce in Costa Rica
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
Talent overview
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:
Finance Manager, Human Resource Manager, Data Analysts, Machine learning
Costa Rica
Top local universities in Costa Rica
Universidad de Costa Rica
Ranking
Local: 1
World: 413
Universidad Nacional
Ranking
Local: 2
World: 1308
Instituto Tecnológico de Costa Rica
Ranking
Local: 3
World: 2122
Universidad Latina de Costa Rica
Ranking
Local: 4
World: 4270
Universidad EARTH
Ranking
Local: 5
World: 4775
Top Local Job Boards
Number of LinkedIn users
1,426,000
Top Recruitment Agencies
MRI Caricam, Doris Peters & Asociados, DyN
Where to find talent
Top Local Job Boards:
Top Local Job Boards
Number of LinkedIn users:
Number of LinkedIn users
Top Recruitment Agencies:
Top Recruitment Agencies:
Salary Data
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 |
Employ in Costa Rica
Employing in Costa Rica
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.
Employee Contract
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.
Probation period
The probation period in Costa Rica is 90 days.
Public and Provincial Holidays
| Date | Name | Type |
| January 1 | New Year’s Day | National Holiday |
| April 11 | Battle of Rivas | National Holiday |
| April 17 | Maundy Thursday | National Holiday |
| April 18 | Good Friday | National Holiday |
| May 1 | Labor Day / May Day | National Holiday |
| July 25 | Annexation of Guanacaste | National Holiday |
| August 2 | Our Lady of Los Ángeles | National Holiday |
| August 15 | Mother’s Day | National Holiday |
| September 15 | Independence Day | National Holiday |
| December 1 | Day of Abolition of the Army | National Holiday |
| December 25 | Christmas Day | National Holiday |
Employee Leaves
| 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
Public and Provincial Holidays
Payroll in Costa Rica
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.
How taxes work
Employer Payroll Tax
| Scheme | Employer’s Contribution |
| Disability, Old-Age and Death Insurance (IVM) | 5.75% |
| Mandatory Pension Regime | 3.25% |
Employee Payroll Tax
| Category | Contribution |
| Medical and Maternity | 5.5% |
| Disability, Old age and Death Benefits | 4.5% |
| Workmans Savings | 1% |
Employee Income Tax
| Monthly Taxable Income (Costa Rican colones, CRC) | Tax Rate (%) |
| 0 to 863,000 | 0% |
| 840,001 to 1,267,000 | 10% |
| 1,267,001 to 2,223,000 | 15% |
| 2,223,001 to 4,445,000 | 20% |
| Above 4,445,000 | 25% |
*CRC is Costa Rica Colones.
VAT
Standard rate of VAT in Costa Rica is 13%.
Bonus
13th Month Pay
The 13th-month pay in Costa Rica is mandatory.
Employee Benefit
- Health Insurances
- Pension Scheme
- Bonuses
- Leaves
- Allowances
Employee offboarding
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.
Visa and
immigration
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.
Read more
Your employment toolkit for Costa Rica
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Overtime Pay
Minimum Wage
Overtime Pay
Visa and Immigration
Special Category Permit includes the following;
- Costa Rica works permit for transfrontier workers.
- Costa Rica works permit for Artists, Athletes, and Entertainers.
- Costa Rica works permit for temporary workers.
- Costa Rica works permit for Professional and Technical guests.
- Costa Rica works permit for self-employed individuals in a well-established company
- Costa Rica works permit for Transferee Staff.
- Costa Rica works permit for self-employed individuals in the agriculture, construction, and services sectors.
- Costa Rica works permit for Preventive Maintenance Services and Corrective Post Sales Management.
- Costa Rica works permit for working in a specific occupation with a company (legal entity).
- Costa Rica works permit for working in a specific occupation as a domestic worker.
- Costa Rica works permit for working in a specific occupation.