# Hire in Costa Rica

Source: https://overseashire.com/hire/costa-rica · verified 2026-10-05 · confidence medium

Bilingual workforce, a US-aligned time zone with no DST and an established nearshore services and tech sector. Employer social charges are on the high side regionally.

## Employer cost
Employer on-costs 26.83–35.2% of gross salary. Low = employer CCSS/social charges per PwC (26.83% of monthly pay, itemised below). High adds the mandatory aguinaldo (13th month, 8.33% of annual pay) - derived. Excludes the mandatory INS work-risk insurance premium (rate varies by activity), paid vacation, and severance (cesantia) accrual.

| Contribution | Rate | Notes |
|---|---|---|
| CCSS - Sickness and maternity (health) | 9.25% | Employer share. |
| CCSS - Disability, old age and death (IVM) | 5.58% | Scheduled to rise gradually to 5.75% by 2029 per PwC. |
| Banco Popular contribution | 0.50% |  |
| Family allowances (Asignaciones Familiares / FODESAF) | 5.00% | PwC describes as child support payments. |
| Employee capitalization fund / Labour Protection (Fondo de Capitalizacion Laboral and related) | 3.00% | PwC lists 3% for the employee capitalization fund. |
| INA (National Institute of Learning) | 1.50% |  |
| IMAS (health clinic/other institutions per PwC) | 2.00% | PwC labels this line health clinic/other institutions; in practice commonly IMAS. Label to be confirmed. |

Mandatory benefits: Aguinaldo (13th month salary), paid in December; Annual vacation (minimum two weeks per 50 weeks worked); INS workers' compensation insurance (employer-paid); Paid maternity leave (general knowledge: 4 months); Cesantia (severance) on certain dismissals

## Rules
- Payroll: Monthly or bi-weekly (common practice); aguinaldo paid by 20 December
- Probation: Three months (Labour Code art. 28; general knowledge, not fetched).
- Notice and severance: Notice (preaviso) is typically one week for 3-6 months' service, 15 days for 6-12 months and one month after one year; cesantia severance accrues up to 8 years of service on dismissals without cause. Figures from general knowledge; not verified against the primary text.
- Termination: Dismissal without just cause triggers preaviso and cesantia. Just-cause dismissal requires documented grounds and a process. Special protection applies to pregnant workers and union leaders.
- Working time: Daytime shift 8 hours a day and 48 hours a week; overtime at 150% (general knowledge; not fetched).
- Paid leave: Minimum two weeks of paid vacation for every 50 weeks of continuous service (general knowledge, Labour Code art. 153). Roughly 11 paid public holidays; confirm the current list.
- Minimum wage: Private-sector minimums are set by occupational category (MTSS decree 45303-MTSS from 1 January 2026; +1.63% general adjustment). Unskilled generic worker: CRC 373,092.30 monthly per secondary sources; confirm at mtss.go.cr.

## Contractors
Contractor use is possible, but Costa Rica applies a primacy-of-reality test and the CCSS audits misclassification, which can lead to back-contributions. Local counsel advised.

## EOR
Foreign companies need a Costa Rican entity or an EOR to employ locally. Deel advertises onboarding in a few days in Costa Rica.
Onboarding: EOR Deel claim: a few days; not independently verified; own entity Deel claim: LATAM entity set-up can take 3-12 months; Costa Rica-specific figure not verified.

## FAQ
**What are the employer social security rates in Costa Rica?** PwC lists employer contributions of 26.83% of monthly pay across CCSS health and pension, Banco Popular, family allowances, capitalization fund, INA and other items.

**Is there a 13th month salary?** Yes. The aguinaldo is mandatory and paid by 20 December.

**Do I need a local entity?** To hire employees directly, yes. An EOR provides an alternative.

**What is the probation period?** Generally three months under the Labour Code, based on general knowledge rather than a fetched source.

Unverified: Labels for the 2% and 3% lines in PwC's list (IMAS/Banco Popular/LPT split); INS work-risk premium rate; Preaviso/cesantia scale, probation and working-hours figures from general knowledge; Public holiday count; Costa Rica EOR/entity timelines are provider claims

Sources:
- https://taxsummaries.pwc.com/costa-rica/corporate/other-taxes
- https://aglegal.com/salario-minimo-costa-rica/
- https://observador.cr/aprobado-aumento-del-163-para-los-salarios-minimos-en-el-2026/
- https://www.deel.com/es/hiring/employees/chile/

Not legal or tax advice.