* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City
San José

Costa Rican Colón (₡)



Employment Cost


Annual Leave

14 days

In-demand Specialties*
Ecotourism & Hospitality, Technology & It, Healthcare & Medical Services

The Ultimate Guide to Hiring Employees in Costa Rica

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.

hiring-in-Costa Rica-guide

Key Considerations Before Hiring In Costa Rica

Employing in Costa Rica requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in Costa Rica with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in Costa Rica quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

Costa Rica's cultural alignment with Western work values facilitates the integration of foreign management practices.

The country offers enticing business incentives, including tax benefits, fostering a pro-business environment.

With a stable democracy and high per capita income, Costa Rica stands out in the Americas.

Its services sector, driven by an educated workforce, comprises a significant portion of the Gross National Product, making it attractive for sourcing skilled talents.


Fundamental Aspects of Employment in Costa Rica

In Costa Rica, verbal agreements are acceptable for short-term agricultural tasks lasting up to 90 days, but written contracts are mandatory for other situations. Contracts must be in Spanish or English and provided within a month of starting work. They should include:

  • Identification of both parties
  • Job responsibilities and duties
  • Workplace(s)
  • Employee's salary and other benefits

Probationary Period in Costa Rica

In Costa Rica, probation periods vary by job and are typically specified in the employment contract, lasting around three months. During this time, the employer can terminate the contract without cause and without compensation.

Working hours in Costa Rica

In Costa Rica, the standard workday is eight hours, up to a maximum of 48 hours per week. Employees can work up to nine hours a day if it doesn't affect their health, with a mandatory 30-minute rest period.

Overtime in Costa Rica

In Costa Rica, working over 48 hours per week constitutes overtime, compensated at 150% of regular wages. Holiday work earns employees 200% of their regular pay. Up to 4 hours of overtime can be worked per day.

Navigating Key Aspects of Payroll in Costa Rica

Costa Rica has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

January 1st - December 31st

Fiscal Year in Costa Rica

January 1st - December 31st is the 12-month accounting period that businesses in Costa Rica use for financial and tax reporting purposes.

Payroll Cycle in Costa Rica

The payroll cycle in Costa Rica is usually monthly, with employees being paid as specified in the employment cotract.
11,738.83 CRC p/h

Minimum Wage in Costa Rica

The minimum wage for employees in Costa Rica is typically 11,738.83 CRC per hour, amounting to ~1,878,212.80 CRC per month for a typical 40 hour work week.

Minimum wages and salaries in Costa Rica

The minimum wage for 2023 in Costa Rica varies, starting at 11,738.83 CRC per day for unskilled workers and reaching 15,333.31 CRC per day for specialised employees.

Bonus Payments in Costa Rica

In Costa Rica, the provision of a 13th-month salary is compulsory, and these payments are required to be disbursed annually by December 20th.

Comprehensive Overview of Employment Taxes in Costa Rica

Understanding the tax obligations for both employers and employees is crucial when operating in Costa Rica's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Costa Rica.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 26.67% on top of the employee salary in Costa Rica.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In Costa Rica, the typical estimation for employee payroll contributions cost is around 10.67%.

Tax Rate Tax Type

Individual Payroll Tax Contributions

In Costa Rica, income tax follows a progressive rate ranging from 0% to 25%, calculated based on individual income.

Tax Rate Income Bracket

Pension in Costa Rica

Employers in Costa Rica contribute 5.42% of employees' monthly earnings to social insurance, covering old age, invalidity, and survivors' benefits. To qualify for old-age benefits, individuals must be at least 65 years old and contribute for a minimum of 300 months. Additional contributions can lower the retirement age to 61 years and 11 months for men or 59 years and 11 months for women.

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Costa Rica tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in Costa Rica

When it comes to terminating employment in Costa Rica, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

The process of terminating employment in Costa Rica varies based on contract type, collective agreements, and the reason for termination. Contracts can end through legal provisions, mutual agreement, or as mandated by the law. Valid reasons for termination include:

  • Dishonesty
  • Negligence
  • Fraud
  • Redundance

Notice Period

In Costa Rica, the notice period for employees depends on their length of service:

  • 0-3 months: No notice required
  • 3-6 months: 1 week notice
  • 6 months - 1 year: 15 days notice
  • 1 year or more: 1 month notice

Severance Pay

Workers in Costa Rica who resign or are terminated, whether with or without cause, are entitled to severance pay based on their length of employment and salary. The number of severance days is determined as follows:

  • 7 days for 3 to 6 months of service
  • 14 days for 6 to 12 months of service
  • 19.5 days for 1 year of service
  • 20 days for 2 years of service
  • 20.5 days for 3 years of service
  • 21 days for 4 years of service
  • 21.25 days for 5 years of service
  • 21.5 days for 6 years of service
  • 22 days for 7-13 years of service
  • 20 days for 13 or more years of service

Annual Leave Entitlements and Company Policies in Costa Rica

The annual leave entitlement in Costa Rica is 14 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in Costa Rica

Costa Rica observes 13 national public holidays.

Holiday Date

Paid Time Off in Costa Rica

Maternity Leave in Costa Rica

Paternity Leave in Costa Rica

Sick Leave in Costa Rica

Parental Leave In Costa Rica

Costa Rica's Benefits Built Into Playroll

Competitive benefits package in Costa Rica

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in Costa Rica's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In Costa Rica

Make your benefits package in Costa Rica a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

  • Health Insurance
  • Pension
  • Long-Term/Disability Insurance
  • Death Benefit
  • Background Checks
  • IT Equipment Sourcing

Statutory benefits for employment in Costa Rica

Mandatory contributions to Costa Rica's Social Security system provide employees with the following benefits:

  • Basic Pension (Old age, invalidity and survivors)
  • Sickness and Maternity
  • Family and Household Benefits
  • National Training Institute
  • Social Welfare Institute (Instituto Mixto de Ayuda Social – IMAS)
  • Worker Owned Development Bank (Banco Popular y de Desarrollo Comunal)
  • Workers Pension Fund (Fondo de Capitalización Laboral-FCL)
  • Complementary Pension Fund
  • National Insurance Institute
  • Accidents at Work and Occupational Diseases

Playroll allows you to provide localized benefits for employees in Costa Rica within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in Costa Rica create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for Costa Rica

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in Costa Rica.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

Playroll makes it easy!