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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Paid Time Off Policy in Costa Rica

Both full-time and part-time employees become eligible for paid vacation after completing 50 weeks of continuous service. Upon reaching this milestone, workers accrue 1.25 days of paid leave per month, providing a balanced approach to work-life integration.

National Public Holidays

Costa Rica recognizes 10 official public holidays throughout the calendar year. These include:

  1. New Year's Day (January 1st)
  2. Holy Week observances (2 days during Easter)
  3. Juan Santamaría Day (April 11th)
  4. International Labor Day (May 1st)
  5. Guanacaste Day (July 25th)
  6. Feast of Our Lady of the Angels (August 2nd)
  7. Mother's Day (August 15th)
  8. Independence Day (September 15th)
  9. Army Abolition Day (December 1st)
  10. Christmas Day (December 25th)

Practical Implications for International Employers

Companies like SailGlobal must carefully track employee service periods to ensure compliance with Costa Rican labor regulations. The progressive accrual system after the initial 50-week period requires meticulous record-keeping. Many multinational corporations implement specialized HR software to manage these requirements efficiently.

Regional Comparison

Compared to neighboring countries, Costa Rica's vacation policy demonstrates a balanced approach. For instance, Nicaragua requires 52 weeks of service for vacation eligibility, while Panama mandates 11 months. This makes Costa Rica an attractive destination for international talent seeking reasonable work-life balance provisions.

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