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- Employee Cost Calculator
- Costa Rica
Employee cost calculator in Costa Rica
Looking to hire in Costa Rica? Our Employee Cost Calculator gives you a clear view of expenses including taxes and employer contributions.
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Frequently Asked Questions (FAQs)
What are the mandatory employment costs and statutory benefits for employers in Costa Rica?
Employers in Costa Rica are required to contribute to the Caja Costarricense de Seguro Social (CCSS) for healthcare and maternity (SEM), disability, old age, and death insurance (IVM), and the Banco Popular fund, totaling approximately 26.33% of the employee’s gross salary. Statutory benefits also include paid annual leave (minimum 2 weeks per year), paid public holidays, and maternity leave funded by the CCSS.
How are payroll taxes and social security contributions calculated for employees in Costa Rica?
Payroll taxes in Costa Rica are primarily composed of social security contributions, with employers contributing approximately 26.33% and employees contributing around 10.5% of gross salary to the CCSS. Employers are responsible for withholding the employee portion and remitting all contributions monthly to the relevant authorities.
What are common hidden or indirect costs associated with employing staff in Costa Rica?
Employers must budget for the 'aguinaldo' (13th month salary), which is a mandatory annual bonus equal to one month’s salary, as well as potential severance payments (preaviso and cesantía) in case of termination without just cause. Additional indirect costs include mandatory occupational risk insurance (INS) and administrative compliance expenses.
What legal requirements impact the total cost of employment in Costa Rica?
Costa Rica establishes minimum wage rates by occupation, enforces maximum working hours (8 hours per day/48 per week), and mandates overtime pay at 150% of the normal rate. Termination rules require notice periods and severance pay according to the Código de Trabajo, and employers must comply with collective bargaining agreements where applicable.
What country-specific employment practices should employers be aware of in Costa Rica?
Probation periods are typically set at three months, during which employment can be terminated with minimal notice. Indefinite-term contracts are standard, and it is customary to provide additional benefits such as meal vouchers or transportation allowances, although these are not legally mandated. Written contracts outlining all employment terms are highly recommended to ensure compliance.
