Find your employer of record in Costa Rica

In Costa Rica, the normal VAT rate is 13%. Likewise, hiring Employer of Record Costa Rica services lets companies keep their compliance with the law.

Termination Process

Depending on the type of contract and the reason for termination, the termination procedure varies depending on the contract of employment or collective agreement in effect.

It is legal to end a person's employment contract with:

• The equal parties' consent.
• The accord of either side of the contract of employment within the conditions and terms stipulated by the law.

Notice Period

In Costa Rica, a worker's notice period, whether temporary or permanent, depends on how long they've worked there. Therefore, let us see:

• 0 to 3 months: No necessary notice
• 3 to 6 months: 1 week
• 6 months to a year: 15 days
• More than one year. One month

Severance Pay

In Costa Rica, the amount of severance pay goes according to the length of the employee's service. Consequently, let us see:

• 3 to 6 months: 7 days
• 6 months to a year: 14 days
• 1 year: 19.5 days
• 2 years: 20 days
• 3 years: 20.5 days
• 4 years: 21 years
• 5 years: 21.24 days
• 6 years: 21.5 years
• 7 to 9 years: 22 days
• 10 years: 21.5 days
• 11 years: 21 days
• 12 years: 20.5 years
• 13 years or more: 20 days

Probation Period

Depending on the type of position, the probationary term in Costa Rica is set in the employment contract. However, probationary periods are typically three months long. Hiring employees is way easier with an Employer of Record Costa Rica firm.

Paid Time Offs

The amount of paid yearly leave an employee is entitled to in Costa Rica depends on how many years of service they have completed. For workers with 50 weeks of regular employment, the basic paid leave obligation is 14 days annually. The worker is eligible to one day of leave each month if they have given 50 weeks of employment or less.

Employees are not permitted to carryover or accrue any leave unless a written agreement between the company and the employee allows for it.

Public Holidays

There are 11 national holidays throughout the year.

Vacation Holidays

There are 14 vacation holidays throughout the year.

Sick Days

In Costa Rica, workers are elegible to three days of fully compensated sick leave. Therefore, Social Security covers the remaining 50.00% of an employee's normal wage after the company contributes 50.00%. Social Security begins to pay 60.00% of the average daily wage on the 4th day of illness; consequently, the company does not need to make any payments to the employee.

Within 48 hours of the start of the sick leave, the worker must file a health certificate to the Social Security Department in order to receive remuneration.