UKG Inc., a leading provider of HR, payroll, and workforce management solutions announces entering into a definitive agreement to acquire Immedis. Read More
Country Payroll Guide Costa Rica
We deliver secure, compliant, accurate and touchless global payroll for Costa Rica.

Key Facts
- Capital
- San José
- Date format
- dd/mm/yyyy
- Currency
- Costa Rican Colón (CRC)
- VAT
- the standard rate is 12%
Contributions
Employers
- Health and Maternity
- Health and Maternity - 9.25%
- Basic Pension Scheme
- Basic Pension Scheme - 5.25%
- Banco Popular Employer Fee
- Banco Popular Employer Fee - 0.25%
- Family Assignations
- Family Assignations - 5%
- Social Aid (IMAS)
- Social Aid (IMAS) - 0.5%
- INA
- INA - 1.5%
- Contribution from Banco Popular Employer
- Contribution from Banco Popular Employer - 0.25%
- Labor Capitalization Fund
- Labor Capitalization Fund - 1.5%
- Complementary Pension Fund
- Complementary Pension Fund - 2%
- National Insurance Institute (INS)
- National Insurance Institute (INS) - 1%
- Total Employment Cost
- Total Employment Cost - 26.5%
Employees
- Medical & Maternity
- Medical & Maternity - 5.5%
- Disability, Old Age & Death Benefits
- Disability, Old Age & Death Benefits = 4%
- Workmens Savings Banks
- Workmens Savings Banks - 1%
- Total Employee Cost
- Total Employee Cost - 10.5%
Minimum Wage
- Minimum Wage
- The minimum wage in Costa Rica is 10652.48 CRC per month
Payroll
- Payroll Cycle
- Monthly
- 13th Salary
This is equal to a month’s salary, to be paid before 20th of December.
Income Tax
- Employee Income Tax (1)
- 0-840,000 CRC - 0%
- Employee Income Tax (2)
- 840,000- 1,233,000 CRC - 10%
- Employee Income Tax (3)
- 1,233,001– 2,163,000 CRC - 15%
- Employee Income Tax (4)
- 2,163,001 – 4,325,000 CRC - 20%
- Employee Income Tax (5)
- 4,325,001 CRC and above - 25%
Working Hours
- General Working Hours
48 hours per week.
- Overtime
A maximum of 4 hours overtime daily (paid at 150% of the regular wages).
Leave
- Paid Time Off
12 days (+2 days of rest).
- Public Holidays
11 public holidays.
- Sick Days
The employer and social security will pay 50% of the employee’s normal wages for the first 3 days, any days after that, social security takes over 60% of the employees normal salary and the employer will no longer be obligated to pay.
- Maternity Leave
4 months (paid) 1 month prior to the birth and 3 months after the child has been born.
- Paternity Leave
Private sector employees are not entitled to receive paternity leave.
- Parental Leave
Private sector employees are not entitled to receive parental leave.
Termination
- Termination Process
Reasonable cause is required.
- Notice Period
- 0 – 3 months – no notice required
- 3 – 6 months – 1 week
- 6 months – 1 year – 15 days
- More than 1 year – 1 month
- Severance Pay
- Less than 6 months – 7
- More than 6 months – Less than 1 year – 14
- 1 year – 19.5
- 2 year – 20
- 3 years – 20.5
- 4 years – 21
- 5 years – 21.24
- 6 years – 21.5
- 7 – 9 years – 22
- 10 years – 21.5
- 11 years – 21
- 12 years – 20.5
- 13 years and on – 20
- Probation Period
3 months maximum.