Employ in Costa Rica with ease.

Remote makes employment in Costa Rica easy. With our localized contracts, easy invoice management, and best-in-class compliance, you can grow your global team with confidence.

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  • Availability

    Remote-Owned Local Entity

    We own our own entity in the countries where we operate to shield your company from risk and provide you and your employees with the signature Remote experience.

  • Capital city

    San José

  • Currency

    Costa Rican colón
    (, CRC)

  • Languages spoken


  • Services available

    Services available:

Facts & Stats

The Republic of Costa Rica is a sovereign unitary presidential constitutional republic. The Central American country is recognized within the region for its stable democracy, press freedom, and high per capita income. Costa Rica also registers a strong rating on the human development index compared with Latin American neighbours.

Costa Rica’s economy has witnessed significant strides driven by an educated population, diversification from agriculture, and investment and tax incentives that have earned it the colloquial tag of Switzerland of Central America.

  • Capital city

    San José

  • Currency

    Costa Rican colón
    (, CRC)

  • Languages spoken


  • Population size

    5,094,118 (est. 2020)

  • Ease of doing business


  • Cost of living index

    50.64 (2021)

  • Payroll frequency


  • VAT - standard rate


  • GDP - real growth rate

    2.1 (2019)

Grow your team in Costa Rica with Remote

Looking to employ workers in Costa Rica? Companies hiring in Costa Rica must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.

Remote can employ your team in Costa Rica on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your Costa Rica team. You can also pay contractors now in Costa Rica with Remote.

of misclassification

Employing in Costa Rica

The Costa Rican Labor Code (Código de Trabajo) is the preeminent statute guiding employment relations and spells out provisions for employee protections and workers’ rights. Employees in Costa Rica enjoy protections against discrimination based on age, religion, sexual orientation, gender expression, and race.

Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Costa Rica.

Public holidays

Below are national public holidays applicable for all regions in this country. Remote customers have access to a detailed list of regional public holidays within the Remote platform. Sign up now to access all public holiday information.

Minimum Wage

The Costa Rican minimum wage is set on a sliding scale depending on an employee’s skill level or educational qualification.

Minimum wage ranges from 9,598.73 CRC per 8-hour workday for unskilled workers to 12,537.91 CRC per day for specialized workers.

The monthly minimum wage ranges from 10,652.48 to 682,607.00 CRC per month depending on the employee’s skill and education level.

Daily wage rates

  • Unskilled workers: ₡10,652.48 ($17.20)
  • Semi-skilled workers: CRC 11,583.80 ($18.71)
  • Skilled workers: CRC 11,797.05 ($19.05)
  • Specialized worker: CRC 13,914.32 ($22.47)
  • Superior specialization worker: CRC 21,593.60 ($34.87)

Monthly wage rates

  • Generic unskilled worker: CRC317,915.58 ($513.36)
  • General semi-skilled worker: CRC 342,027.40 ($552.30)
  • Generic skilled worker: CRC 359,544.27 ($580.59)
  • General highly skilled: CRC 403,764.18 ($651.99)
  • Technical worker with diversified education qualification: CRC 376,776.77 ($608.41)
  • Technical worker - Superior Education: CRC 464,335.93 ($749.80)
  • Technical worker with higher education diploma: CRC 501,500.15 ($809.81)
  • Technical worker with university bachelors: CRC 568,819.86 ($918.52)
  • Technical worker with graduate qualification: CRC 682,607.23 (1,102.26)

Payroll Cycle

For customers of Remote, all employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.

13th Month Salary

Note that a 13th salary or 13th month salary payment in Costa Rica is mandated by law. The 13th salary must be paid by the 20th of December and will be equal to one month’s pay. The payment is commonly known in Costa Rica as Aguinaldo Salary.

Onboarding Time

We can help you get a new employee started in the Costa Rica fast. The minimum onboarding time we need is only 6 working days.

Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.

For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment. Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.

Competitive benefits package in Costa Rica

At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practicing “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).

Our benefits packages in Costa Rica are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:

  • Health Insurance
  • Dental Insurance
  • Vision Insurance
  • Mental Health Support
  • Pension or 401(K)
  • Life and Disability Insurance

Calculate the cost to hire an employee
in Costa Rica

Taxes in Costa Rica

Learn how employment taxes affect your payroll and your employees’ paychecks in Costa Rica.

  • Employer

    • 30% - Corporate tax rate

    • 9.25% - Health & Maternity

    • 5.25% - Basic Pension Scheme

    • 0.25% - Banco Popular Employer Fee

    • 5.0% - Family Assignations

    • 0.5% - Social Aid: (IMAS)

    • 1.5% - INA

    • 0.25% - Contribution from Banco Popular Employer

    • 3% - Labor Capitalization Fund

    • 0.5% - Complementary Pension Fund

    • 1% - National Insurance Institute

  • Employee

    • 5.5% - Medical and maternity contribution

    • 4.0% - Disability, old age, and death benefits

  • Employee income taxes

    • 0% - Up to CRC 817,000 ($1319.28)

    • 10% - CRC 817,001 to 1,226,000 ($1319.28 - $1979.72)

    • 15% - CRC 1,226,000 to CRC 2,103,000 ($1979.72 - $3395.88)

    • 20% - CRC 2,103,000 to CRC 4,205,000 ($3395.88 - $6790.15)

    • 25% - Over 4,205,000 ($6790.15)

Types of leave

Paid time off

Employees are entitled to two weeks of paid vacation annually once they have worked with an employer for an entire year. Many Costa Rican employers increase the number of allotted days off per year as a benefit for the employee.

Public holidays

Employees can take nine paid public holidays off and non-Catholics are entitled to paid time off to observe religious holidays such as Yom Kippur, Eid-el-Fitr, etc.

Whenever the following holidays fall on any day other than a Monday, employees will take the following Monday off in place of the holiday.

  • Juan Santamaria,
  • Annexation of Nicoya,
  • Mother’s Day, and
  • The Assumption of Mary

And should an employee be required to work on a public holiday, the employer will provide a replacement holiday within 15 days.

Sick leave

Employees are entitled to sickness benefits from both the employer and the social security office, provided they’ve made the latter’s required contributions.

For the first three days of an illness, employees can draw a sickness benefit equivalent to their full wages, with 50% paid by the employer and 50% paid by the social security office.

The employee will draw wages equivalent to 60% of their normal wages from the fourth day, paid by the social security office.

Maternity leave

Female employees are entitled to 4 months of maternity leave, starting a month before delivery, and compensated at a 100% rate, paid 50:50 by the employer and the social security office.

Paternity/Parental leave

A 2022 law now provides paid paternity leave to all biological fathers in Costa Rica. During the first four weeks after the birth of a child, a father may take two days of paid leave each week. The costs are again shared 50:50 between the employer and the CCSS.

Employment termination

Termination process

Employee contracts can be terminated if a just cause is established, such as dishonesty, negligence, fraud, redundance, or any other tangible reasons, with notice provided in advance and stipulated below.

Notice period

Notice periods required under Costa Rican law depend on an employee’s tenure, ranging between 1 week and a month.

  • 0 – 3 months: No notice period
  • 3 – 6 months: 1 week
  • 6 – 12 months: 15 days
  • 1+ year: 1 month

Severance pay

Severance pay entitlements are issued based on an employee’s tenure with the employer.

  • 3 – 6 months: 7 days pay
  • 6 – <12 months: 14 days’ pay
  • 1 year: 19.5 days’ pay
  • 2 years: 20 days’ pay
  • 3 years: 20.5 days’ pay
  • 4 years: 21 days’ pay
  • 5 years: 21.24 days’ pay
  • 6 years: 21.5 days’ pay
  • 7 – 9 years: 22 days’ pay
  • 10 years: 21.5 days’ pay
  • 11 years: 21 days’ pay
  • 12 years: 20.5 days’ pay
  • 13 years: 20 days’ pay

Probation periods

The Probation Period is maximum of 3 months. It is common to apply the maximum probation period to senior roles.

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