The Republic of Costa Rica (República de Costa Rica) is situated in Central America and covers an area of 51,766 square kilometers. It shares borders with Nicaragua to the north, the Caribbean Sea along the northeastern coastline, Panama to the southeast, and the Pacific Ocean along the southwestern coastline. The country’s population is largely urban with the rural population accounting for less than 25% of the inhabitants. The services industry accounts for around 67% of the Gross National Product (GNP).
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Costa Rica.
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The Republic of Costa Rica (República de Costa Rica) is situated in Central America and covers an area of 51,766 square kilometers. It shares borders with Nicaragua to the north, the Caribbean Sea along the northeastern coastline, Panama to the southeast, and the Pacific Ocean along the southwestern coastline. The country’s population is largely urban with the rural population accounting for less than 25% of the inhabitants. The services industry accounts for around 67% of the Gross National Product (GNP).
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Costa Rica.
The national holidays mentioned below are valid for the year 2026 and are critical for hiring in Costa Rica planning:
The holidays mentioned below are valid for the year 2026.
| January 1 | New Year's Day | |
| April 2 | Maundy Thursday | Movable |
| April 3 | Good Friday | Movable |
| April 11 | Juan Santamaria Day | |
| May 1 | Labour Day | |
| July 25 | Annexation of Guanacaste Day | |
| August 2 | Lady of the Angels Day | |
| August 15 | Assumption Day / Mother's Day | Movable (Mother's Day) |
| September 6 | Day of the Black Person and Afro-Costa Rican Culture | Movable |
| September 15 | Independence Day | |
| December 1 | Abolition of the Army | |
| December 25 | Christmas Day |
The approximate time for sharing the contract with an employee in Costa Rica is 14 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.
NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.
Social Security in Costa Rica provides medical assistance, maternity assistance, and pensions. Employers pay approximately 26.67% of wages towards statutory benefits.
An overview of the statutory benefits is presented in the table below:
| Category | Employer Contribution |
| Basic Pension (Old age, invalidity and survivors) | 5.42% (gradually increasing to 5.75% by 2035) |
| Sickness and Maternity | 9.25% of monthly covered payroll. |
| Family and Household Benefits | 5% of monthly payroll |
| National Training Institute | 1.5% |
| Social Welfare Institute (Instituto Mixto de Ayuda Social – IMAS) | 0.5% |
| Worker Owned Development Bank (Banco Popular y de Desarrollo Comunal) | 0.5% |
| Workers Pension Fund (Fondo de Capitalización Laboral-FCL) | 1.5% |
| Complementary Pension Fund | 2% |
| National Insurance Institute | 1% |
| Accidents at Work and Occupational Diseases | Premium varies according to assessed degree of risk. |
Daytime working hours are eight hours per day or up to a maximum of 48 hours per week. The working hours can be extended to nine per day provided the work and its environment do not adversely affect the health of the employee. Employees are entitled to a minimum rest period of 30 continuous minutes.
Work performed beyond the stipulated normal working hours is classified as overtime. The maximum overtime that an employee can work is four hours per day (maximum 12 working hours per day inclusive of overtime). Overtime is not permitted in unhealthy or dangerous jobs.
Overtime work is paid at plus 50% of the normal wage rate. When overtime is worked on holidays, it is paid at double the rate.
The Labor Code does not specifically provide for a probation period, but it is a customary practice to give a probation period of three months.
Each of the parties may terminate the contract without just cause, by giving prior notice to the other, in accordance with the following rules:
| Period of Continuous Work | Applicable Notice Period |
| 0 to 3 months | No notice required |
| From 3 months to 6 months | 1 week |
| Over 6 months to 1 year | 15 days |
| Over 1 year | 1 month |
Daytime working hours are eight hours per day or up to a maximum of 48 hours per week. The working hours can be extended to nine per day provided the work and its environment do not adversely affect the health of the employee. Employees are entitled to a minimum rest period of 30 continuous minutes.
Work performed beyond the stipulated normal working hours is classified as overtime. The maximum overtime that an employee can work is four hours per day (maximum 12 working hours per day inclusive of overtime). Overtime is not permitted in unhealthy or dangerous jobs.
Overtime work is paid at plus 50% of the normal wage rate. When overtime is worked on holidays, it is paid at double the rate.
The Labor Code does not specifically provide for a probation period, but it is a customary practice to give a probation period of three months.
Each of the parties may terminate the contract without just cause, by giving prior notice to the other, in accordance with the following rules:
| Period of Continuous Work | Applicable Notice Period |
| 0 to 3 months | No notice required |
| From 3 months to 6 months | 1 week |
| Over 6 months to 1 year | 15 days |
| Over 1 year | 1 month |
Social Security in Costa Rica provides medical assistance, maternity assistance, and pensions. Employers pay approximately 26.67% of wages towards statutory benefits.
An overview of the statutory benefits is presented in the table below:
| Category | Employer Contribution |
| Basic Pension (Old age, invalidity and survivors) | 5.42% (gradually increasing to 5.75% by 2035) |
| Sickness and Maternity | 9.25% of monthly covered payroll. |
| Family and Household Benefits | 5% of monthly payroll |
| National Training Institute | 1.5% |
| Social Welfare Institute (Instituto Mixto de Ayuda Social – IMAS) | 0.5% |
| Worker Owned Development Bank (Banco Popular y de Desarrollo Comunal) | 0.5% |
| Workers Pension Fund (Fondo de Capitalización Laboral-FCL) | 1.5% |
| Complementary Pension Fund | 2% |
| National Insurance Institute | 1% |
| Accidents at Work and Occupational Diseases | Premium varies according to assessed degree of risk. |
Benefits
Employer Contribution
Maximum Base
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