What you need to know for employing in Costa Rica

Omnipresent makes it fast and easy to employ remote talent in Costa Rica. We take care of payroll, compliance, taxes, and admin so you can focus on growing your business.

Costa Rica

₡ CRC

COUNTRY BREAKDOWN
Captial City
San José
Language
Spanish
Payroll Frequency
Monthly
Employment Costs
Population
5094114

Country Specific Facts

Everything you need to know about hiring in Germany.

Country Facts

Currency

Costa Rican colón

EMPLOYER COSTS

ONBOARDING TIMELINE

Benefits & Leave

LANGUAGE(S)

Spanish

TERMINATION

PAYROLL FREQUENCY

Monthly

EOR Maximum Engagement

EOR MAXIMUM ENGAGEMENT

18 Months

*Germany restricts contract length under the Employer of Record model to 18 months. After this period we can enable you to move employees to the VEO model. More information in the Employment Contracts section.

Essential Employment Facts

Comprehensive information about employment in Germany

How it works

How does Omnipresent Global Employment Solutions work in Costa Rica?

Costa Rica’s skilled, bilingual workforce is a global draw, but its labor laws can complicate hiring. Omnipresent, as your Employer of Record (EOR), ensures compliance with CCSS rules and local standards, no entity required.

Our EOR services manage payroll, benefits like the 13th-month bonus, and taxes, freeing you to focus on teams in San José or beyond. We offer a tech-driven approach customized to Costa Rica’s thriving market.

  • Quick setup for hiring.
  • Payroll in CRC, fully compliant.
  • Local wage and benefit insights.
  • Easy growth with full support.
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Employer Costs

Employer Costs in Costa Rica

Employer costs include Sick Insurance, ASFA (Family Allowances), and Vacation Pay. Use the OmniCalculator to estimate costs, or contact us for further information.

Employee Income Taxes

Employee Income Taxes in Costa Rica

Employer costs include Sick Insurance, ASFA (Family Allowances), and Vacation Pay. Use the OmniCalculator to estimate costs, or contact us for further information.

Income tax rates for individuals and companies is calculated depending on gross income on a progressive scale. Income tax ranges from 0% to 25% for individuals.

Employee Social Contributions

Employee Social Contributions in Costa Rica

Employee contributions include Health insurance, Regime of Mandatory Complementary Pensions (ROP), and Regime of Invalidity, Old Age and Death.

Working Hours

Working Hours in Costa Rica

48 hours/week max. Over 48 hours is considered overtime and paid at 150%-200% regular salary. Overtime is capped at max 4 hours/day. Exempt employees (managers, administrators, legal representatives) are exempt from these limitations.

Holidays

Holidays & Vacation in Costa Rica

Please note that the below information covers national holidays and should be used for informative purposes only and not as a guarantee for payroll purposes. While we strive to offer you accurate information, public holidays are subject to frequent changes and can be dependent on regional differences. Should you need more detailed information on public holidays, please consult the government pages of the state and/or the local municipality of your employee.

  • Wednesday, Jan 01, 2025 - New Year's Day (Año Nuevo)
  • Friday, Apr 11, 2025 - Gesta Heroica de Juan Santamaría (Gesta Heroica de Juan Santamaría)
  • Thursday, Apr 17, 2025 - Maundy Thursday (Jueves Santo)
  • Friday, Apr 18, 2025 - Good Friday (Viernes Santo)
  • Thursday, May 01, 2025 - Labour Day (Día del trabajador)
  • Friday, Jul 25, 2025 - Guanacaste Day (Anexión del Partido de Nicoya)
  • Saturday, Aug 02, 2025 - Our Lady of Los Ángeles (Día de la Virgen de los Ángeles)
  • Friday, Aug 15, 2025 - Mother's Day (Día de la Madre)
  • Monday, Sep 15, 2025 - Independence Day (Día de la Independencia)
  • Sunday, Oct 12, 2025 - Columbus Day (Día de la Raza)
  • Thursday, Dec 25, 2025 - Christmas Day (Navidad)
Sick leave

Sick Leave Entitlement in Costa Rica

First 3 days paid at 50% regular salary by employer and CCSS. From 4th day paid at 60% regular salary by CCSS.

Parental leave

Parental Leave in Costa Rica

Maternity: 1 month of prenatal leave and 3 months of postpartum leave. 50% paid by the employer and the other 50% is paid by the CCSS.

Paternity/Parental: None for private sector employees.

Annual Leave Entitlement

Annual Leave Entitlement in Costa Rica

After 50 weeks continuous service - min. 2 weeks paid annual leave, if less than 50 weeks continuous service - 1 day / month of service + PH.

Severance pay entitlement

Severance Pay Entitlement in Costa Rica

Yes but only if employee is terminated without cause by the employer or if the employee quits for cause. Based on duration of employment and ranges from 7 - 22 days of wages.

Termination

Termination in Costa Rica

Termination can be with or without cause. Acceptable grounds are set out in Article 81 of the Labour Code. The employer is required to issue a letter including the reason for termination. If termination is without cause, the employer will have to pay severance.

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