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Everything you need to know to hire compliantly in Costa Rica

Employer of Record (EoR) in Costa Rica

Employment contracts in Costa Rica

Payroll and benefits in Costa Rica

Leave and time off in Costa Rica

Employee protection in Costa Rica

End of employment in Costa Rica

Recent developments in Costa Rica

Local and international employment law is always changing. Thankfully, we keep a close eye on the latest developments, so you don’t have to. Read on to find out what’s been happening in Costa Rica.

Minimum wage increase (2025)

As of 1 January 2025, the National Wage Council implemented a mandatory general minimum wage increase of 2.37% for the private sector. Domestic workers received a total increase of more than 4.7%, while highly complex occupations obtained a total increase of around 2.9%.

Regulation of remote work from abroad (2025)

On 6 June 2025, the Legislative Assembly approved Law No. 23.528, amending the Telework Law No. 9738. The reform clarifies that remote work may be performed both inside and outside Costa Rica, provided there is mutual agreement between the parties. Employers must ensure extraterritorial occupational risk insurance coverage and provide the necessary technological equipment.

New requirements for workplace breastfeeding spaces (2025)

Published on 2 July 2025 in the Official Gazette under Executive Decree No. 44943-MTSS-S, the regulation sets minimum standards for workplace breastfeeding rooms, including hygiene, safety, privacy, and accessibility. Such spaces may not be located in bathrooms or unsuitable storage areas. Employers have 12 months from July 2025 to adapt facilities and register them with the Ministry of Labour. Non-compliance may result in fines ranging from 8 to 23 base salaries (approx. CRC 258,376.22 per base salary).

Protection of maternity leave rights in same-sex couples (2025)

In February 2025, the Constitutional Court recognised the right to co-maternity in same-sex couples, granting the non-gestational mother four weeks of maternity leave. At the time of reporting, this ruling had not yet been officially published in the Official Gazette.

Union rights and collective bargaining concerns (2025)

On 16 August 2025, reports highlighted ongoing challenges regarding union freedoms. While the law guarantees the right to form unions, bargain collectively, and strike under certain restrictions, enforcement remains inconsistent. Authorities have been criticised for delays in registering collective agreements, and some employers reportedly promote parallel worker associations to weaken independent unions.

Employer of Record in Costa Rica

Want to compliantly hire workers in Costa Rica without setting up a legal entity? Using an Employer of Record (EoR) could be the way to go.

When you work with an EoR partner like CXC, you don’t have to worry about the administrative side of engaging workers — and you don’t need a legal presence there either.

Read our full guide to EoRs in Costa Rica to find out what you need to know.

Employment contracts in Costa Rica

When you hire internationally, you need to make sure your employment contracts stand up to scrutiny. But each country has its own rules, norms and customs, which can be a lot to keep track of. Read our full guide to learn everything you need to know to draw up compliant contracts in Costa Rica.

We’ll talk about:

Contract terms and conditions
Fixed-term contracts and extensions
Regulations around remote work
Working hours and overtime

Payroll & benefits in Costa Rica

If you want to hire employees in Costa Rica, you need to understand what they expect in terms of compensation. That means not only grasping the legal requirements, but also the nuances of bonuses, benefits, payroll frequency and more.

Read our guide to find out what you need to know before you hire in Costa Rica.

Leave and time off in Costa Rica

Understanding leave entitlements is a key part of employing workers in Costa Rica. Thankfully, we have all the info you need: read our guide to find out about paid holidays, maternity and parental leave, public holidays and more.

Employee protections in Costa Rica

Hiring abroad comes with a lot of risk — but you can protect your business by learning what you can and can’t do as an employer. Read our full guide to find out what you need to know about employee protections in Costa Rica.

We’ll cover:

Whistleblower protections
Data privacy
Equal treatment for temporary agency workers
Anti-discrimination laws
Pay equity legislation

End of employment in Costa Rica

A worker leaving your organisation represents a lot of risk for you as an employer. Protect your business by reading our full guide to end-of-employment regulations in Costa Rica.

We’ll talk about:

Notice periods
Rules around termination
Post-termination restraints
Transfers of undertakings

Let's work together to simplify the complex world of work

Our solutions let you source, engage, manage and pay workers, anywhere in the world — with no compliance worries. Get in touch with our team to find out how we can help you.