Costa Rica Labor Costs

Mandatory fringe benefits for employees in Costa Rica

  • 48 hour work week
  • Overtime: 1.5x for hours in excess of 48/wk or 12/day; 2x for worked holidays.
  • 96 hours (12 days) paid vacation per year
  • 11 paid legal holidays per year
  • Christmas bonus (1/12) salary paid December 15 of each year
Costa Rica Labor Costs
Mandatory Benefits
Employer
Contribution
Employee
Contribution
monthly percentages
Total Social Charges
25%
9%
- Social Security
   
Health and maternity benefits
9.25%
5.5%
Disability, old age and death benefits
4.75%
2.5%
- Family allowances (welfare benefits)
5%
NA
- INA National Training Institute tax
1.5%
NA
- IMAS (Elimination of extreme poverty) tax
.5%
NA
- Workers compulsory savings bank
.5%
1%
- Worker capitalization fund
3%
NA
- Compulsory complementary pension
.5%
NA
Additional Costs
22.98% (a)
 
Reserve for termination and severance
8.33%
NA
Paid vacations (12 days)
3.85%
NA
2.47%
NA
Christmas bonus
8.33%
NA
INS (National occupational hazard insurance) **
1.9%-5%
NA
 
 
 
TOTAL
47.98%
9%
(a) this total does not include occupational hazard insurance
** National occupational hazard insurance is based on payroll and hazards associated with individual job types.