Hire compliantly in Costa Rica. Compare EOR providers, navigate Central America’s highest employer contribution burden and understand the nearshoring market that US companies are betting on.
Capital
San Jose
Language
Spanish
Average Salary
CRC 785k
Payroll Cycle
Bi-weekly
Employer Cost
39-50%
Paid Leave
12 days
Public Holidays
12 days
Tax Rates
0-25 %
Detailed guides on the employment topics that matter most when hiring in Costa Rica. Independently researched, updated for 2026.
Costa Rica's average salary is approximately ₡785,000 per month (~$1,500 USD) in 2026, with a median closer to ₡630,000 to ₡670,000. The country has Latin America's highest minimum wage for unskilled workers (~$710 USD) and a tiered system that sets different minimums by occupational category. Employer costs are steep at ~26.67% in mandatory CCSS and social fund contributions, rising to 39 to 50% above gross when aguinaldo and vacation are included. This guide covers salaries by sector, city, and experience level, plus a full employer cost breakdown with worked example.
Read ArticleCosta Rica operates one of Latin America's most complex minimum wage systems, with over 30 occupation-specific rates set annually by the National Wages Council (CNS). This 2026 guide covers every minimum wage category, the full gross-to-net calculation including the January 2026 CCSS increase, total employer cost, sector benchmarks, and what the new income tax brackets mean for payroll planning.
Read Article
We independently rank EOR providers based on their actual performance in Costa Rica. The Best EOR in Costa Rica guide evaluates providers across pricing transparency, local entity ownership, onboarding speed, in-country support and contract compliance.
Costa Rica’s employer contribution burden is among the highest in Latin America at ~27% before mandatory bonuses and vacation provisions. An EOR that quotes you a low monthly fee but doesn’t clearly break down these statutory costs is hiding the real number.
When you hire in Costa Rica, the tiered minimum wage system, mandatory aguinaldo and 4-month maternity leave create a cost structure that goes well beyond the base salary. The occupational tier classification of each role determines the legal minimum, not a single national rate.
| Key Employment Facts | |
| Minimum Wage | CRC 373,092-765,852/month (by occupation tier) |
| Probation Period | 3 months |
| Standard Working Hours | 48 hours/week (8 hrs day shift, 6 hrs night shift) |
| Paid Annual Leave | 12 working days (after 50 weeks of service) |
| Notice Period | 1 month (after 3 months of employment) |
| Aguinaldo (13th Salary) | Mandatory (1 month salary, paid in December) |
| Sick Leave | Employer pays 50% first 3 days, CCSS from day 4 |
| Maternity Leave | 4 months (1 month before + 3 months after birth) |
Good to Know: Costa Rica’s minimum wage system is unique in Latin America. The Consejo Nacional de Salarios sets different minimum rates by occupational tier: unskilled workers (CRC 373,092), semi-skilled (CRC 400,634), skilled (CRC 418,620), technical/specialized (CRC 503,964) and university-degree holders (CRC 765,852). Applying the wrong tier is a compliance violation, not just a payroll error. The aguinaldo (13th salary) is calculated on total earnings from December 1 to November 30 of the preceding year, including overtime, commissions and bonuses. It must be paid by December 20. Vacation entitlement of 12 days accrues after 50 continuous weeks of service, and unused vacation cannot be forfeited. Employers must grant vacation within 15 weeks of the accrual date or face liability. Maternity leave is 4 months (1 month pre-birth + 3 months post-birth), funded 50% by the employer and 50% by the CCSS. Dismissal of a pregnant employee or during the 12 months following birth is void unless authorized by the labor courts.
When you hire in Costa Rica, CCSS contributions alone run approximately 26% of gross salary, but that is only the starting point. Add mandatory aguinaldo (8.33%), vacation provision (4.17%), labor risk insurance and workers' compensation, and total employer cost reaches 39-50% above base salary.
| Employer Contributions | |
| Contribution | Employer Rate |
| Health Insurance (SEM) | 9.25% |
| Pension (IVM) | 5.58% (from January 2026) |
| Other CCSS Funds (Banco Popular, INA, IMAS, FODESAF) | 7.25% |
| Workers’ Compensation (Ley de Proteccion al Trabajador) | 3.42% |
| Labor Risk Insurance (INS) | Variable by industry |
| Aguinaldo Provision | ~8.33% (1 month/year) |
| Vacation Provision | ~4.17% |
| Total Employer Cost | ~39 to 50% of gross |
| Employee Taxes | |
| Tax / Contribution | Employee Rate |
| Income Tax (Impuesto sobre la Renta) | 0% to 25% (progressive) |
| Health Insurance SEM (employee share) | 5.50% |
| Pension IVM (employee share) | 4.33% (from January 2026) |
| Workers’ Compensation (employee share) | 1.00% |
| Banco Popular | 1.00% |
Total employer cost in Costa Rica typically runs 1.39x to 1.50x of gross salary when all mandatory contributions, aguinaldo and vacation provisions are included. For an employee earning CRC 1,200,000/month (~USD 2,300), budget approximately CRC 1,670,000 to CRC 1,800,000 in total monthly employer cost. The generous tax-free income threshold (~CRC 929,000/month) means most mid-level employees pay zero income tax.
Costa Rica has 12 public holidays per year. Some are mandatory paid days off, while others are discretionary (the employer can choose whether to grant the day off or pay double).
|
Date |
Holiday |
|
January 1 |
New Year’s Day (Ano Nuevo) |
|
April 2 |
Holy Thursday (Jueves Santo) |
|
April 3 |
Good Friday (Viernes Santo) |
|
April 11 |
Juan Santamaria Day (Batalla de Rivas) |
|
May 1 |
Labour Day (Dia del Trabajo) |
|
July 25 |
Annexation of Guanacaste (Anexion de Nicoya) |
|
August 2 |
Our Lady of the Angels (Virgen de los Angeles) |
|
August 15 |
Assumption / Mother’s Day (Dia de la Madre) |
|
September 15 |
Independence Day (Dia de la Independencia) |
|
October 12 |
Day of the Cultures (Dia de las Culturas) |
|
December 1 |
Army Abolition Day (Abolicion del Ejercito) |
|
December 25 |
Christmas Day (Navidad) |
Labour Day (May 1) and Christmas Day (December 25) are the only two holidays where employers are legally prohibited from requiring employees to work. For all other holidays, the employer may require the employee to work but must pay double the regular daily wage. Employees who work on a mandatory holiday are entitled to triple pay.
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