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.
• Paternity leave: only public sector workers are entitled to 8 days paternity leave.

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.

Under a Mauve Group Employer of Record solution, clients and workers can reap the benefits of Mauve’s Global Master Insurance Programme – a market-leading unified corporate insurance programme that connects all Mauve entities to its two preferred providers.

The insurance provides coverage in overseas locations through a combination of the master policy and its linked local policies, where required by law in certain jurisdictions. The policies include:

• Employer’s Liability and Public Liability - £10,000,000 combined limit.
• Professional Indemnity - £5,000,000 limit.
• Worker’s Compensation – Limit is dependent on location of work.

For specific information about statutory and recommended insurances in your chosen country, get in touch with Mauve.