Hiring in Costa Rica: Complete Guide 2027
Everything you need to know about hiring and managing employees in Costa Rica
Overview
Costa Rica is Central America's services economy: San José's shared-service centres, software teams and a medical device cluster in the free zones employ a bilingual workforce. The cost of that workforce is the CCSS. Employer contributions run about 26.8% of gross through the monthly planilla, the INS work-risk policy adds 1 to 3%, and the aguinaldo adds a thirteenth month in December. Dismissal without cause costs preaviso plus cesantía of 19.5 to 22 days per year of service, capped at 8 years. An EOR carries the CCSS account and that liability for you.
Currency
Primary Language
Payroll Tax
Pay Frequency
Overview
Employer Costs
Employer Social Contributions
Mandatory Benefits
EOR Service Fee
Total Additional Cost
Employee Deductions
Income Tax
Employee Social Contributions
Mandatory Employee Benefits
PAYROLL & SETUP
Setting Up Payroll in Costa Rica
Payroll in Costa Rica starts with the CCSS employer registration, the Hacienda tax registration (ATV) and an INS riesgos del trabajo policy. Employer charges in 2026 come to about 26.83% of gross: health (SEM) 9.25%, pension (IVM) 5.58% after the January 2026 step from 5.42%, the Banco Popular, FODESAF, IMAS and INA levies, and the FCL and ROP funds of the Ley de Protección al Trabajador. The INS policy sits on top, rated by activity, usually 1 to 3%. Employees pay 10.83% (SEM 5.5%, IVM 4.33%, Banco Popular 1%), and the employer withholds income tax on the monthly Hacienda table: exempt up to CRC 918,000, then 10%, 15%, 20% and 25% above CRC 4,727,000. Decreto 45303-MTSS raised minimum wages 1.63% from 1 January 2026; an unskilled worker is at about CRC 373,000 a month. Pay is monthly or fortnightly. The EOR files the CCSS planilla, the Hacienda withholding and the aguinaldo of Ley 2412 in the first 20 days of December.
Key Labor Laws &
Requirements
Employment Contracts
- Written contract optional, CCSS registration from day one
- 3-month period before cesantía is owed
- 48-hour day-shift week
Leave & Time Off
- 2 weeks per 50 weeks worked (article 153)
- Maternity 4 months, half paid by the CCSS
- 11 statutory holidays
Termination Rules
- Preaviso 1 week to 1 month, or pay in lieu
- Cesantía 19.5–22 days per year, capped at 8 years
- Nothing owed on resignation or dismissal for cause
COMPLIANCE
Cesantía and CCSS Liability Compliance in Costa Rica
Two rules shape a dismissal in Costa Rica. The Código de Trabajo gives a 3-month period during which a dismissal costs no cesantía; after that, dismissal without cause owes preaviso under article 28 (one week after 3 months, two after 6, one month after a year, or pay in lieu) and cesantía under article 29, about 19.5 to 22 days of pay per year of service, capped at 8 years. Neither is owed when the worker resigns or is dismissed for cause. The second rule is the CCSS: the worker must be registered from day one, written contract or not, and if the registered employer falls behind on the planilla the company benefiting from the work answers for the debt. Ask your EOR for a current certificación de patrono al día before every invoice.
Key Challenges
- Employer charges of about 26.8% plus the INS work-risk policy
- Cesantía of 19.5 to 22 days per year of service, capped at 8 years
- Joint liability if the registered employer falls behind with the CCSS
- Aguinaldo: a thirteenth month paid in the first 20 days of December
- Work permits for foreign staff through the DGME
Country Highlights
Advantages
- Bilingual shared-services and software workforce around San José
- Medical device and free-zone manufacturing cluster
- UTC-6, the same working hours as Chicago
- No army since 1948 and a stable legal system
- Onboarding through an EOR in 3 to 7 days
Popular Industries & Roles
Technology
Avg. Salary: ₡15M-₡30M
San José software and support teams work US hours; the free zones host engineering and cloud support centres for North American tech groups
Shared Services & BPO
Avg. Salary: ₡9M-₡18M
Bilingual finance, HR and customer operations centres around San José and Heredia are the country's largest white-collar employer
Medical Devices
Avg. Salary: ₡10M-₡22M
Medical devices are Costa Rica's top export; free-zone plants around Coyol and Cartago hire process, quality and regulatory engineers
Top 3 Providers in Costa Rica
Based on our analysis of pricing, compliance record, service quality, and customer reviews
Soprinsa
- Central America personnel outsourcing
- 30 years; 6 countries
- FMCG, pharma and distribution depth
- Forbes Top 5; dual-Delegado model
Deel
- EOR in 130+ countries; owned entities in 120+
- Contractor and EOR in one platform
- 300+ integrations including Slack, Workday
- AI-powered compliance automation
Rivermate
- Human-first EOR from $319–$639/month by country
- G2 #1 for Ease of Use and Best Support
- 180+ countries, 38 owned entities (Hightekers)
- 24/7 real experts via Slack and WhatsApp
Frequently asked questions
Hiring in Costa Rica through an EOR, in short.
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How much does an employer pay on top of salary in Costa Rica?
Employer contributions in Costa Rica come to ≈26.8%; the largest mandatory line is Health (SEM) 9.25%. With the other statutory benefits and a typical EOR fee, budget ~45–60% on top of gross salary.
What does an EOR charge per employee in Costa Rica?
Published EOR fees in Costa Rica run $400–700/mo per employee per month, with any setup fee negotiated separately. The fee is flat, so it weighs less as the salary rises.
What does an employee in Costa Rica pay in tax and contributions?
Income tax is 0–25% progressive and employee social contributions are 10.83% (5.5% health), both withheld by the employer on every pay run.
How long does it take to hire through an EOR in Costa Rica?
3-7 Days once the employee's documents are in. The contract is issued by the EOR's local entity and payroll runs on the local cycle (Monthly).
Which EOR providers rank best in Costa Rica?
Soprinsa, Deel and Rivermate hold the first three places in our ranking for hiring in Costa Rica. The full top 10, with the questions to put to each provider before signing, is here: Top 10 EOR providers in Costa Rica.
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