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Minimum wage in Costa Rica
Payroll in Costa Rica
Statutory benefits in Costa Rica
Other employee benefits in Costa Rica
Compliant, seamless payroll and benefits in Costa Rica and beyond
Payroll and benefits in Costa Rica
Employers wanting to engage workers in Costa Rica should first have a solid understanding of the rules surrounding payroll and benefits in the country. For example, employers are required to deduct employee taxes and social security contributions and remit them to the proper authorities as part of the process of running payroll in Costa Rica. They must also make their own contributions based on each employee’s wages.
In this section, we’ll cover everything you need to know about payroll in Costa Rica, including the minimum wages for different job categories and how these are calculated, and how much must be deducted for employee social security contributions and income tax. We’ll also discuss both mandatory and optional employee benefits in Costa Rica, enabling you to both meet your legal obligations as an employer and improve your value proposition to employees.
Minimum wage in Costa Rica
The minimum wage in Costa Rica is set according to job category, with different minimums for workers in different industries and of different skill levels. These are set annually by the National Wage Council and usually updated on 1 January each year. This ensures they are aligned with economic conditions and the cost of living.
Minimum wages in Costa Rica in 2025
Some minimum wages in Costa Rica are given as hourly figures. For example, the minimum wage for unskilled workers as of 1 January 2025 is CRC 12,236.95 per hour. This rises to:
- CRC 13,306.79 per hour for semi-skilled workers.
- CRC 13,713.20 per hour for skilled workers.
- CRC 15,983.95 per hour for specialised workers.
- CRC 22,980.34 for superior specialised workers.
Other minimum wages are provided as monthly figures. These include the following job categories:
- Generic unskilled worker: CRC 367,108.56.
- General semi-skilled worker: CRC 391,198.08.
- Generic skilled worker: CRC 413,023.56.
- General highly skilled worker: CRC 471,604.51.
- Technical worker (diversified education): CRC 432,819.26.
- Technical worker (superior education): CRC 533,402.13.
- Technical worker (Diploma of Higher Education): CRC 576,094.23.
- Technical worker (Bachelor’s University): CRC 653,427.21.
- Technical worker (University Graduate): CRC 784,139.52.
Minimum wages in Costa Rica for part-time workers
Part-time employees in Costa Rica are entitled to the same hourly minimum wage as their full-time counterparts. Wages for part-time workers are calculated based on hours worked, even if the minimum wage for their skill level is given as a monthly figure.
What counts towards the minimum wage in Costa Rica?
The minimum wage in Costa Rica includes basic salary and some employee benefits. Non-monetary compensation elements such as housing, food, and clothing may be counted towards the minimum wage as long as these are properly valued and given in exchange for work. Benefits that are not tied to compensation, such as utilities or meal allowances, are generally not counted as part of the minimum wage. Minimum wage calculations also do not include:
- Social security and welfare contributions, including health and pensions.
- Occupational risk insurance through the National Insurance Institute.
- The mandatory 13th-month bonus (Aguinaldo) paid at the end of the year.
Minimum wage in Costa Rica after tax
The legal minimum wages set by the Costa Rican National Wage Council are gross figures before tax and social security contributions have been deducted. Employees earning the minimum wage for their job category must account for these deductions when determining their take-home pay.
Payroll in Costa Rica
Each country has its own requirements and customs for running payroll. For example, in Costa Rica, the payroll cycle is generally monthly, with payments made at the end of the month. The tax year runs from 1 January through to 31 December, and the local currency is the Costa Rican Colón (CRC). Read on for more information about running payroll in Costa Rica.
Social security contributions in Costa Rica
Deducting and paying social security contributions is an important aspect of running payroll in Costa Rica. Both employees and employers must make contributions based on the employee’s gross wages. The employee’s total contribution adds up to 10.67% of salary, and the employee’s portion amounts to 26.33%. Together, these contributions pay for various benefits including health insurance, pensions, and family allowances.
Income tax in Costa Rica
Employees in Costa Rica also pay income tax on their income from employment. This is charged on a progressive scale based on income level, at the following rates:
- Below CRC 922,000: 0%.
- Between CRC 922,000 and CRC 1,352,000: 10%.
- Between CRC 1,352,000 and CRC 2,373,000: 15%.
- Between CRC 2,373,000 and CRC 4,745,000: 20%.
- Above CRC 4,745,000: 25%.
Costa Rican employers must calculate the appropriate tax based on the employee’s income, withhold it from their wages and remit it to the tax authorities.
13th salary in Costa Rica
The 13th salary is a mandatory benefit in Costa Rica. Employers must pay employees an additional salary payment equivalent to one month’s wages by 20 December each year. This is known as an Aguinaldo (bonus).
Payslips and payroll records in Costa Rica
Employers in Costa Rica must provide employees with a payslip for each pay cycle showing their base salary, any additional payments, deductions, and net wages. Both digital and paper payslips are acceptable. Employers must also keep detailed payroll records for at least five years.
Statutory benefits in Costa Rica
Employees in Costa Rica are entitled to certain statutory benefits by law. Many of these are provided through the Costa Rican Social Security Fund (CCSS), which is funded through contributions from both employers and employees. Other benefits must be provided directly by employers. Read on for what you need to know as an employer in Costa Rica.
Pensions in Costa Rica
Employees in Costa Rica have the right to a state pension, which provides them with an income when they are no longer able to work. The country’s pension system is made up of several tiers, as follows:
- Tier 1: Régimen Invalidez, Vejez y Muerte (IVM): This is a mandatory pension plan that provides basic coverage through a contributory pension system. Both employees and employers contribute throughout the employee’s working life.
- Tier 2: Régimen Obligatorio de Pensiones (ROP): This offers an additional layer of coverage through a savings plan. It is also mandatory for employers and employees.
- Tier 3: Additional voluntary pensions: Employers can choose to offer their employees additional voluntary personal pension plans to help them plan for retirement. Employees are not obligated to use this benefit if it is offered by their employer.
In addition to these three tiers, the Pensiones del Régimen No Contributivo (RNC) offers public pensions through the social welfare system. This type of pension is not based on contributions and is available to retirees who meet a low-income threshold.
Mandatory health insurance in Costa Rica
Employees in Costa Rica can access publicly-funded healthcare through the public health insurance system. This allows them to use public hospitals and clinics and is funded by contributions from employers and employees. Employers may choose to offer additional health insurance to give their employees a better quality of care and reduced waiting times.
Insurance for work-related accidents in Costa Rica
Employers in Costa Rica are obligated to purchase labour risk insurance, which covers employees against work-related accidents and injuries. This insurance is provided by the National Insurance Institute (Instituto Nacional de Seguros or INS). The premium rates are based on a risk assessment of the workplace and are typically paid by the employer.
Leave and time off in Costa Rica
Employees in Costa Rica are also entitled to various types of paid and unpaid leave. For example, all employees have the right to at least two weeks of annual leave after completing 50 weeks of employment, in addition to public holidays. Employees also have the right to other types of leave, including sick leave, maternity leave, and paternity leave. Some of these are paid by the employer, while others are funded through the social security system.
Other employee benefits in Costa Rica
Employers in Costa Rica can choose to offer supplemental benefits to their teams, even if they’re not required by law. Read on to learn about some of the most popular additional employee benefits in Costa Rica, which could help you attract and retain top talent.
Supplemental health coverage in Costa Rica
Private health insurance is one of the most popular employee benefits in Costa Rica. While the public system grants everyone access to basic healthcare, additional coverage allows employees to access a higher standard of care and shorter waiting times. Depending on the policy you choose, it may also include additional healthcare coverage such as dental or vision.
Supplementary pensions in Costa Rica
Employers and employees in Costa Rica are required to pay into two tiers of the state pension system, which gives employees access to an income when they retire. However, employers can also choose to offer additional pension schemes to help employees better manage their finances and plan for the future.
Flexible work arrangements in Costa Rica
Flexible work arrangements such as remote working, compressed hours or flexible start/finish times can help employees to better manage their work-life balance — making them a valuable employee benefit in Costa Rica. As well as allowing employees to choose when and where to work, some employers choose to offer home-office stipends to help their teams meet the cost of working from home.
Professional development opportunities in Costa Rica
The best employees value the chance to improve their skills and grow in their careers. Offering benefits such as online classes, workshops, and personal development budgets can help improve retention while enabling employees to meet their goals.
Additional paid time off in Costa Rica
Costa Rican employees are entitled to at least a certain amount of paid time off each year for rest and relaxation (annual leave). However, employers can choose to provide additional leave as part of their employee benefits offering. Providing more generous family leave, such as maternity, paternity, and parental leave, can also be a valuable employee benefit for employees with children.
Compliant, seamless payroll and benefits in Costa Rica and beyond
Getting payroll and benefits right is not just a legal issue. Every country also has its own customs, norms and expectations about employee compensation. And if your operations aren’t in line with your workers’ expectations, they may not stick around for long.
Thankfully, we know what we’re doing. When you work with CXC to engage workers in Costa Rica, we’ll handle everything from tax withholding to employee bonuses on your behalf.
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