The complete guide to offering employee benefits in Costa Rica | Rippling (2024)

Parental leave

In Costa Rica, parental leave is a shared cost between employers and social security.

Pregnant employees are entitled to four months of maternity leave—one month before their due date and three months after—paid at 100% of their usual salary. Employers and social security split the cost evenly for the full four months. Maternity leave can be extended for up to three months for medical reasons—this cost is covered in full by social security.

As of 2022, all fathers in Costa Rica are entitled to eight paid days of paternity leave: two days per week for the first four weeks after their child is born. This cost is also shared evenly between employers and social security.

Sick leave

Sick leave is another statutory benefit with costs shared between employers and social security.

For the first three days of any illness, employers are required to pay 50% of an employee's salary, while social security pays the other 50% (provided the employee has made enough contributions). If an illness lasts longer than three days, social security pays 60% of the employee's salary each day; the employer is no longer required to pay.

What employee benefits are optional in Costa Rica?

All the benefits we've covered so far are statutory minimums that must be provided. But they aren't limits—employers can offer more than these benefits to make their companies more attractive to Costa Rica's top talent. Below are some common supplementary benefits in Costa Rica.

Supplemental health insurance plans

While Costa Rica offers national public healthcare for all residents, supplemental health benefits are a common perk. Private insurance grants access to private facilities and care, and because premiums are typically affordable (ranging from $60 to $250 per month), it's becoming more customary for employers to offer additional healthcare as a benefit to attract and retain the best workers.

Voluntary pensions plans

Costa Rican social security includes a basic pension to be paid out to workers who are elderly or retired. Voluntary pension plans are another common supplemental benefit, designed to help employees save more for their golden years.

Holiday bonuses

Vacation premiums or holiday bonuses aren't statutory in Costa Rica like they are in some Latin American countries. That's why they've become a common supplemental benefit offered by employers who want to be as competitive as possible.

Meal vouchers

Some Costa Rican employers choose to offer meal vouchers, especially for employees who are expected to work on-site. These vouchers help offset the cost of buying meals during work hours.

Transportation stipends

Transportation stipends are another increasingly common perk for Costa Rican employees. These stipends help offset the cost of getting to and from work.

Tuition reimbursem*nt

For employees in Costa Rica who are enrolled in university (or plan to enroll), tuition reimbursem*nt is an attractive benefit. While not required, this can encourage employees to learn new skills and get degrees and certifications that make them more valuable to their employer, which is why some companies choose to offer this benefit.

Work from home allowances

In the age of remote work, it's becoming more and more common for employers all over the world, including in Costa Rica, to offer work from home allowances. These optional benefits can help remote employees outfit their home office or cover utilities like home internet or their mobile phone bill.

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The complete guide to offering employee benefits in Costa Rica | Rippling (2024)

FAQs

What are the statutory benefits in Costa Rica? ›

Costa Rica has five mandatory employee benefits: Compulsory health insurance – through the social security system with 29 public hospitals. Accident insurance – covering accidents happening at work (during working hours) Pension insurance – funded through employers' contributions to the State Pension Fund (I Pillar)

What is Article 81 of the Costa Rica labor law? ›

Article 81 of the Costa Rican Labor Code provides a list of acceptable reasons for terminating an employee in Costa Rica. These include: Getting into legal trouble, including receiving a prison sentence and committing slander.

What are the payroll laws in Costa Rica? ›

Working hours and overtime

Workers are entitled to one day of rest per week, usually on Sundays. Per Costa Rica's paid working hours law, any work that exceeds the 48-hour weekly or 8-hour daily limit is considered overtime. The employer must pay the employee 1.5 times their regular hourly wage for overtime work.

What are the three basic employee benefits offered to every employee as required by law? ›

Companies that hire full-time employees in the U.S. must provide federally mandated statutory benefits, including Social Security and Medicare, workers' compensation, and unemployment insurance.

What is the 13th month pay in Costa Rica? ›

The aguinaldo bonus is an annual Christmas bonus in Costa Rica that employers are required to pay by law. It is often referred to as the “13th salary” as it is an additional payment on top of the regular wages. The bonus is calculated based on the employee's gross wages earned from December 1 to November 30.

What is the pension system in Costa Rica? ›

Pension system in 2022

The Costa Rican pension system is multi-tiered. There is a contributory earnings-related public pension With a supplementary mandatory savings programme based on individual accounts. A social assistance programme provides a means-tested minimum income guarantee.

What is the severance law in Costa Rica? ›

Severance pay in Costa Rica is a compensation provided exclusively for workers hired for an indefinite period; that is, it does not include those employed for a fixed or specific term since another type of compensation is available for them in article 31 of the Labor Code.

What is Article 183 Labor Code? ›

Art. 183. Employers' contributions.

The rate of contribution shall be reviewed periodically and subject to the limitations herein provided, may be revised as the experience in risk, cost of administration and actual or anticipated as well as unexpected losses, may require.

What is the maximum working hours in Costa Rica? ›

In Costa Rica, legal limitations on working hours are established to protect the well-being of employees. According to the Costa Rican Labor Code, a maximum workweek of 48 hours and a maximum workday of 8 hours is set for most employees.

What is the PTO policy in Costa Rica? ›

According to The Labor Code of Costa Rica (LC), employers in Costa Rica must provide employees with two weeks of paid annual leave for every 50 weeks the employee works (this comes out to roughly two weeks per year).

How much is employee tax in Costa Rica? ›

EMPLOYEE NET AVERAGE TAX RATE

In Costa Rica, the average single worker faced a net average tax rate of 10.7% in 2023, compared with the OECD average of 24.9%.

What is the employer contribution in Costa Rica? ›

All Costa Rican employers are required to contribute to social security, known as Caja Costarricense de Seguro Social, CCSS, or just Caja, for all of their employees. The typical employer contribution is 26.67% of the employee's salary.

What is legally required of employee benefits policies? ›

Medicare and social security, unemployment insurance, workers' compensation, health insurance, and family and medical leave are all benefits that the federal government requires businesses to provide.

What are the three R's of employee benefits? ›

By focusing on respect, recognition, and reward, businesses can cultivate a nurturing environment where employees feel valued and motivated.

Can an employer offer different benefits to different employees? ›

HIPAA does allow an employer to make distinctions in benefits that are offered and in the cost of benefits when those distinctions are not discriminatory.

What are the benefits of being a Costa Rican citizen? ›

Obtaining Costa Rican citizenship brings forth a myriad of benefits, including visa-free or visa-on-arrival access to 149 countries, the right to reside and work in Costa Rica, and membership privileges in the Caribbean Community (CARICOM).

Does Costa Rica have Social Security benefits? ›

All Costa Rican employers are required to contribute to social security, known as Caja Costarricense de Seguro Social, CCSS, or just Caja, for all of their employees. The typical employer contribution is 26.67% of the employee's salary.

Do Costa Ricans pay for healthcare? ›

Costa Rica operates under a universal healthcare system. Expats can receive care under the public or private system. Both are deemed affordable. This section will explain Costa Rica's public healthcare system, including the procedures covered and costs.

How much is severance pay in Costa Rica? ›

Employees in Costa Rica dismissed without just cause are entitled to severance pay. The amount of this depends on their length of employment: Three to six months: Seven days of pay. Six months to one year: 14 days of pay.

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