The Hardest Market · Costa Rica

Costa Rica's HR data

The rules and costs of employing people in Costa Rica (San José), from official sources, in English and Japanese.

46.2%women in management (2025, ILO)
1.27×employer's total cost on ₡2,000,000 a month, as a multiple of salary
12public holidays (2026)

Employment rules

Statutory annual leave2 weeks per 50 weeks' service
Public holidays (2026)12 days
Notice of dismissal1 week to 1 month by service
Severance required by lawCesantía ~20 days/year, max 8 years
Typical negotiated exitNo official benchmark
Probation3 months
Working hours48 h/week (day shift)
How hard is dismissal?Easy: without cause if notice and cesantía are paid

Employer contributions

Health and maternity insurance (SEM), employer9.25%
Pension insurance (IVM), employer5.58%
Family allowances, IMAS, INA and Banco Popular (employer)7.25%
Worker Protection Law contributions (employer)4.75%

Employee contributions

Health and maternity insurance (SEM), employee5.5%
Pension insurance (IVM), employee4.33%
Banco Popular worker contribution1%

Take-home pay and employer cost by monthly salary

Monthly salaryEmployee contributionsIncome taxTake-homeEmployer costCost ÷ salary
₡1,200,000₡129,960₡28,200₡1,041,840₡1,521,9601.27×
₡2,000,000₡216,600₡140,850₡1,642,550₡2,536,6001.27×
₡3,500,000₡379,050₡422,650₡2,698,300₡4,439,0501.27×
₡6,000,000₡649,800₡986,300₡4,363,900₡7,609,8001.27×

Employee in San José, Costa Rican national and tax resident, single with no children (no child or spouse tax credits), on an indefinite contract, salary only paid evenly as monthly pay with no bonus, calendar year 2026. Salary tax (impuesto único sobre las rentas del trabajo dependiente) withheld monthly on gross pay with the 2026 brackets; CCSS social insurance (SEM and IVM) and the Banco Popular worker contribution at the rates in force from 1 January 2026. The statutory 13th-month aguinaldo (one twelfth of the year's pay, exempt from salary tax and CCSS) is not modelled.

Sources: [1] [2] Checked 2026-11-08; 2026 rates.