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7. Labor and employment: Costa Rica

Labor and employment in Costa Rica: the 1943 Código de Trabajo and its 2016 procedural reform, the yearly minimum wage decree, hours and overtime, the aguinaldo, vacations and holidays, maternity and paternity leave, notice and cesantía, CCSS and INS insurance, unions, solidarista associations and strikes, intermediaries, telework and harassment rules, each rule tied to the official text in SCIJ or the Ministry of Labour.

Investor view. A predictable written labour code, cesantía capped at eight years, solidarista associations that prefund severance and a tripartite minimum wage formula that delivered a 1.70% rise for 2027 give employers in Costa Rica a stable, skilled and cost transparent workforce for services and advanced manufacturing.

• Employing people in Costa Rica: the Código de Trabajo, CCSS and INS registration, the 2026 minimum wage table and the main costs of a hireCosta Rican employment is governed by the 1943 Código de Trabajo, which presumes an employment contract whenever someone provides services to another, and by the CCSS and INS social insurance laws. An
• Employment contracts in Costa Rica: written contract contents, indefinite term by default, fixed terms of one or five years and the first three monthsCosta Rican employment contracts must be in writing except for farm work, casual work of up to ninety days and very small jobs, and the written contract must list pay, hours, duration and place of wor
• Minimum wage in Costa Rica: the 2026 decree table from ₡373,092.30 a month, the 1.70% increase for 2027 and the switch to daily minimumsCosta Rica sets a table of private sector minimum wages by occupation and degree, not a single figure: in 2026 the generic monthly minimum runs from ₡373,092.30 for unskilled work to ₡796,921.00 for a
• Working hours and overtime in Costa Rica: 8 hours by day, 6 by night, 48 a week, overtime at 150% and a 12 hour daily ceilingThe ordinary working day in Costa Rica is at most eight hours by day, seven for mixed shifts and six by night, with a 48 hour week; non hazardous work can be organised in days of up to ten hours if th
• Aguinaldo, vacations and public holidays in Costa Rica: a thirteenth month paid by 20 December, two weeks of vacation and nine paid holidaysEvery private employer in Costa Rica pays an aguinaldo equal to one month of salary, calculated on the average pay of the twelve months to 30 November, paid within the first twenty days of December, e
• Maternity, paternity and family leave in Costa Rica: four months of maternity leave paid half by the CCSS, eight paternity days and pregnancy dismissal protectionA pregnant worker in Costa Rica takes four months of paid maternity leave, one month before and three after birth, paid in equal parts by the CCSS and the employer, with contributions continuing on th
• Termination and severance in Costa Rica: notice up to one month, cesantía of 19.5 to 22 days a year capped at eight years, and the dismissal letterAn employer in Costa Rica can end an indefinite contract without cause by giving notice (one week to one month) and paying cesantía, which is 7 or 14 days for the first year and then 19.5 to 22 days o
• Social security and occupational risk insurance in Costa Rica: CCSS registration, worker and employer contributions, the INS policy and the labour capitalisation fundEvery salaried worker in Costa Rica must be insured with the CCSS for health and pensions, on all remuneration paid, and every employer must also insure its workers against occupational accidents and
• Unions, solidarista associations, strikes and collective bargaining in Costa Rica: 12 founders, union leader protection and the 2020 strike rulesCosta Rican workers may form unions without prior authorisation with at least twelve members, and nobody can be forced to join or leave one. Union founders, leaders and candidates have temporary job p
• Outsourcing, intermediaries and contractors in Costa Rica: joint liability of the client, the presumption of employment and group employer rulesCosta Rica has no outsourcing registry, but the Código de Trabajo makes the business that benefits from work done through an intermediary jointly liable for wages, benefits and social security, while
• Telework in Costa Rica: Ley 9738, the written telework addendum, employer paid equipment, digital disconnection and telework from abroadTelework in Costa Rica is voluntary for both sides and needs a written contract or addendum, under Ley 9738 of 2019. The employer provides and maintains equipment and software, pays the agreed share o
• Workplace harassment, discrimination and occupational safety in Costa Rica: Ley 7476 policies, the three month procedure and health committeesEvery Costa Rican employer must have a written policy and an internal procedure against sexual harassment under Ley 7476, finish investigations within three months and report complaints to the labour
• Labour claims, inspections and fines in Costa Rica: one year to sue, fines of 1 to 23 salarios base and conciliation under the Reforma Procesal LaboralSince the Reforma Procesal Laboral (Ley 9343) took effect on 26 July 2017, labour fines in Costa Rica are set in six bands from one to twenty three salarios base, which in 2026 means ₡462,200 to ₡10,6

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