Costa Rica

• New Year's Day
• Maundy Thursday
• Good Friday
• Juan Santamaria Day
• Labour Day
• Guanacaste Day
• Lady of the Angels Day
• Assumption Day
• Mother's Day
• Day of the Black Person and Afro-Costa Rican Culture
• Independence Day
• Abolition of the Army
• Christmas Day

Working Hours

Employees can work 8 hours a day, up to 48 hours a week, if they're over 18. Under 18s are limited to working six hours a day.

Minimum Wage

There is no legal minimum wage in Costa Rica. Wages must be negotiated by a collective bargaining agreement or agreed in an employment contract.

Employee Tax

Annual income	Tax rate
Up to CRC 0-863,000	0%
CRC 863,001 – 1,267,000	10%
CRC 1,267,001– 2,223,000	15%
CRC 2,223,001 – 4,445,000	20%
More than CRC 4,445,001	25%
Medical & maternity contribution	5.5%
Disability, old age & death contribution	4%
Workmen’s Savings Bank contribution	1%

Bonuses

Employees in Costa Rica are entitled to a 13th month salary, payable by December 20th.

Employment contracts in Costa Rica can be written or oral.

Foreign employees must have a work permit and a residency permit. The employer must apply for these on the employee's behalf.

Fixed-term contracts are permitted up to one year.

Annual Leave

Minimum of two weeks' paid holiday after 50 weeks of service.

Sick Leave

Up to three days' fully paid sick leave per year, with a medical certificate required after 48 hours.

From the fourth day, sick leave is paid by social security at 60% of the employee's salary.

Parental Leave

• Maternity leave: 4 months' paid leave.

In the event of the mother’s death, at the time of birth or during maternity leave, the father or guardian of the newborn is entitled to the three months of postnatal maternity leave.

• Paternity leave: Only public sector workers are entitled to 8 days paternity leave – paid by both the employer and the social security administration, at 50% each.

• Adoption leave: An employee adopting a child is entitled to three (3) months of paid adoption leave, starting on the day after placement of the child.

Adoption leave benefits are payable on the same basis as maternity leave, 50% by the employer and 50% by the social security administration.

The adoption leave is a joint entitlement, and it can be shared between a working couple (two parents).

Termination Process

The termination process in Costa Rica depends on the terms of the employment contract and/or collective bargaining agreement.

Generally, employers can terminate a contract provided they give notice and/or compensation in line with legal requirements.

Severance Pay

Severance pay in Costa Rica depends on the employee's length of service.

Rates start at 7 days' pay for 3-6 months' service, rising incrementally to 20 days' pay after 13 years of service.

Global Master Insurance Coverage with Mauve’s Employer of Record Solution
Under a Mauve Group Employer of Record (EOR) solution, clients and their international workers benefit from access to Mauve’s Global Master Insurance Programme—a market-leading, unified corporate insurance framework that supports global compliance across all Mauve entities.

This international insurance coverage ensures legal and regulatory alignment through a combination of a central master policy and country-specific local policies, where required by law. This allows companies to remain fully compliant when expanding their workforce globally or employing staff overseas.

The Global Master Insurance Programme includes the following coverage:

• Employer’s Liability and Public Liability – £10,000,000 combined limit
• Professional Indemnity – £5,000,000 limit
• Worker’s Compensation – Varies depending on the employee’s location

Whether you're expanding internationally or managing global teams, Mauve’s EOR services and insurance support streamline your operations and reduce risk. For tailored advice on mandatory insurance requirements in specific countries, contact Mauve’s international HR consulting team today.