Costa Rica Employment Guide
Costa Rica Employment Guide
Costa Rica, located in Central America, has a population of about 5 million. Its economy is largely based on tourism, agriculture, electronics, and services. Employment in Costa Rica is regulated by the Labor Code, which governs working hours, minimum wages, leave entitlements, social security contributions, and termination procedures. Employers must comply with mandatory benefits, including Christmas bonuses, annual leave, and severance pay. The labor market supports both local and expatriate employees, emphasizing formal employment contracts and social security compliance.
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Currency
Costa Rican Colón (CRC)
Capital
San José
Official language
Spanish
Salary Cycle
Monthly
Our Employment Guide in Costa Rica
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Maternity Leave Regulations in Costa Rica
Employees who have completed 90 days of service and are expecting a child are entitled to 120 days of paid maternity leave. A minimum of 30 days must be taken prior to the expected delivery date, with the remaining 90 days utilized following childbirth.
During this period, employees receive full salary compensation through a shared funding model: 50% is covered by the employer, while the remaining 50% is provided by the Costa Rican Social Security Fund (CCSS).
In cases where pregnancy or childbirth results in medical complications, the leave period may be extended up to six months with proper medical certification.
Paternity Leave Provisions
Costa Rican legislation currently mandates paid paternity leave exclusively for public sector employees, who receive one month of leave. Private sector employees have no statutory right to paternity leave, though some progressive companies like SailGlobal are implementing voluntary paternity benefits.
Parental Leave Framework
There is no comprehensive parental leave legislation in Costa Rica beyond the existing maternity and limited paternity provisions. Working parents typically rely on a combination of available leave types and employer discretion for additional childcare needs.
Sick Leave Policy
Costa Rican labor law does not establish a maximum duration for sick leave, provided employees maintain valid medical certification.
Compensation structure follows a phased approach: employers cover 100% of salary for the first three days of absence. From the fourth day onward until recovery, the CCSS provides 60% of the employee's regular wages.
Throughout the sick leave period, employers remain responsible for maintaining CCSS premium payments to ensure continuous social security coverage.
International Comparison: Best Practices
While Costa Rica's maternity benefits align with regional standards, the limited paternity and parental leave provisions fall behind global benchmarks. Countries like Sweden and Canada offer more inclusive family leave policies that support both parents equally. Multinational companies operating in Costa Rica, including SailGlobal, often supplement statutory requirements with enhanced family-friendly policies to remain competitive in talent acquisition.
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