Recent developments in Costa Rica
We understand the challenges of keeping up with regulatory changes. That’s why we actively monitor these changes, so you don’t have to. Read on to discover what’s been happening in the employment landscape in Costa Rica (2026).
Minimum wage increase (2026)
As of 1 January 2026, Costa Rica applied a general 1.63% increase to private-sector minimum wages across occupational categories. Employers must ensure no employee is paid below the updated minimum for their specific job classification and adjust payroll systems accordingly.
Updated minimum-wage tables by occupational category (2026)
Costa Rica’s minimum wage continues to be set through multiple job categories (rather than a single national figure). Employers must use the correct category (e.g., unskilled, semi-skilled, skilled, specialized, professional) because compliance is assessed against the applicable category wage, not an overall national minimum.
Higher employer social security costs under IVM changes (2026)
From January 2026, adjustments to social security contribution parameters (particularly under the IVM pension regime) increase payroll-related labour costs. Employers should reflect the updated contribution rates and calculation bases in payroll and budgeting.
Telework framework expanded to allow work from abroad (2026)
Amendments to Costa Rica’s telework rules clarify that telework may be performed inside or outside Costa Rican territory by agreement. This reinforces the importance of written telework terms, employer-provided tools/equipment (as applicable), and occupational risk coverage aligned with where work is performed.
Public holiday pay compliance remains a high-enforcement area (2026)
Costa Rica maintains a system that distinguishes between mandatory-paid holidays and non-mandatory-paid holidays depending on the holiday and pay modality. Where holiday work is permitted, employers must apply the correct premium-pay rules and ensure payroll treatment aligns with the Labour Code and official holiday classifications.
