Country Payroll Guide Costa Rica

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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.