Global Hirings

October 2, 2023

3 mins

Employment in Costa Rica

Costa Rica is positioned as the second highest in Latin America and 15th globally in terms of retaining local talent. Through its advancing industrialization and growing economy, the country has successfully cultivated enhanced prospects for its populace.

Employing in Costa Rica

When onboarding an individual from Costa Rica, it's important for the employer to be familiar with employment terms, labor laws, deductions, and benefits. This segment contains all the essential information that can be utilized by employers.


Employee Contract

As outlined by Costa Rica's Labor Laws, it is imperative to have an Employment contract that is either in Spanish or English. This contract must encompass all the terms and conditions set by the employer and is required to be furnished within the initial month of commencement.

Probation period

In Costa Rica, the probationary period spans a duration of 90 days.

Employee Leaves

  • Annual Leave — 14 days
  • Sick Leave — First 3 days by the employer with 50% of the regular salary, next is compensated by Social Security Contribution
  • Maternity Leave — 112 days

Payroll Cycle

In Costa Rica, the payroll is processed on a monthly basis.

Minimum Wage

Within Costa Rica, the minimum wage ranges from CRC10,875.11 per day for unskilled workers to CRC696,873.72 per day for technical workers, including university graduates.

Overtime Pay

In Costa Rica, the regular work schedule consists of 8 hours per day and 48 hours per week. Overtime in the country is considered exceptional and can only be extended when there is a compelling need. Typically, overtime pay amounts to 50% of the regular daily wage. However, on holidays, overtime must be remunerated at twice the standard wage.

Bonus — 13th Month Pay

In Costa Rica, the provision of a 13th-month pay is obligatory.

Employee Benefit

  • Health Insurances
  • Pension Scheme
  • Bonuses
  • Leaves
  • Allowances


The prevailing Value Added Tax (VAT) rate in Costa Rica stands at 13%.

Termination Process

In Costa Rica, either the employer or the employee can end the employment agreement without incurring any obligations.

Notice Period

In Costa Rica, the stipulated notice period is 14 days.

Severance Pay

The severance pay is calculated based on the individual's average earnings during the final six months of their service in Costa Rica.

Visa and Immigration

To reside and work in Costa Rica, individuals are required to obtain a "Special Category Permit." This permit grants authorization to live and work in Costa Rica under the oversight of the Ministry of Labour and Social Security.

Caption: Picture with Costa Rica flag and passport


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If you're considering hiring employees or contractors in Costa Rica or seeking compliant payroll solutions, reach out to us or book a demo at For further insights, follow us on Twitter @niuralhq. Make informed decisions and ensure a successful hiring process in Costa Rica!

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