Average Costa Rica Salaries in 2025: Minimum Wage Official List and HR info
If you’re an entrepreneur, human resources manager, or investor looking at Costa Rica, you need to know this year’s average Costa Rica salaries and employment laws. This guide explores wages, labor law, and the national labor landscape for 2025.
1. Unveiling Costa Rica’s Salary Landscape
a. Exploring Average Salaries
Costa Rica boasts a growing economy and skilled labor. Average monthly salaries for employees range from CRC 500,000 (USD 1,000) to CRC 1,500,000 (USD 3,000) depending on industry, education, experience, and position.
b. Minimum Wage Regulations
Minimum wage laws ensure sector-wide pay equity. In 2025, the minimum wage for a receptionist in the private sector is about CRC ₡399,203.69 (US$780) per month. Each occupation has its own government-set minimum updated every year.
Minimums differ by industry, role, and region—reflecting cost of living and employee protection standards. The Ministry of Labor and Social Security (MTSS) revises wages annually.
2. How Costa Rican Workers Develop Specialization
- Education & Training: A robust system invests in technical and vocational upskilling.
- Bilingualism & Multiculturalism: English proficiency and adaptability boost employability—especially for foreign companies (Amazon, Intel, tourism, and others).
- Industry Leadership & Innovation: Costa Rica is a regional hub in IT, pharma, renewable energy, and more—often hailed as the “Silicon Valley of Latin America.”
3. USA vs. Costa Rica: Salary for Businesses Compared
- Cost-Effectiveness: Costa Rican salaries are considerably lower than the US; nearshoring/outsourcing to CR offers substantial savings for businesses while tapping into specialized talent.
- Skilled Talent: The workforce is well-trained—ideal for everything from software development to client care.
4. Advantages of Nearshoring in Costa Rica
- Cost Savings: Lower wage costs without sacrificing talent or quality standards.
- Specialized Talent: Costa Rican professionals are highly ranked and close to the US both in skills and geography, with excellent international reputation.
- Time Zone Match: Real-time collaboration is smooth due to geographic proximity and similar work hours.
5. Why New Companies Invest in Costa Rica
- Political and economic stability
- Modern infrastructure and high digitalization
- Favorable government incentives
6. Official 2025 Salary List: Type the job title into the search bar.
Official Costa Rica Jobs and Salaries List 2025
*Note: Monthly salaries can be improved depending on experience, education, and position level. Hourly wage = monthly salary ÷ 30 ÷ 8.
Trademark in Costa Rica – Protect Your Brand & Name in 2025
🛡️ Trademark in Costa Rica: Guide After the Company Name Reform
With the 2025 reform in Costa Rica, registering your trademark and your commercial name has become essential to protect your brand identity and business entity legally.
✅ What Is a Trademark in Costa Rica?
In Costa Rica, a trademark is any word, logo, image, figure or sign—or combination thereof—that distinguishes goods or services in the marketplace. The registration process is conducted through the Industrial Property Registry.
- Word marks (denominative)
- Figurative marks (logos)
- Mixed marks (word + image)
- Three-dimensional or olfactory marks
🔎 Why You Must Register Both Trademark and Commercial Name
Post-reform, newly formed companies can no longer include a trade name in their articles of incorporation—making registration of a commercial name the only legal way to protect your company identity.
A trademark protects your products and services, while a commercial name protects the business entity itself—whether it’s a physical store or an online venture.
- 🛡️ Exclusive legal protection
- 🌎 Clear market identity
- 💰 Intangible asset with commercial value
- 📄 Enables licensing, franchising and regional expansion
📝 Trademark vs. Commercial Name: Key Differences
Feature Trademark Commercial Name Object Products/Services Business or Company Registry Industrial Property Registry Industrial Property Registry Length 10 years (renewable) Unlimited while in use Protection Against similar marks Against confusingly similar names
🏛️ How to Register Your Trademark in Costa Rica
AG Legal recommends professional legal assistance before investing in branding, packaging or advertising. Our IP team handles:
- Prior search in the National Registry
- Filing application with Industrial Property Registry
- Publication in La Gaceta for two months
- Handling objections or appeals
- Issuance of ownership certificate
📚 Legal Basis & Name Protection
Under Article 2 of the Trademark Law, a commercial name identifies and distinguishes a business. Article 66 allows enforcement actions against confusingly similar names.
With the Company Name Reform of 2025, legal protection of your commercial name is essential to maintain exclusivity in the marketplace.
💼 AG Legal: Your IP Partner in Costa Rica
AG Legal offers comprehensive legal services for trademark and commercial name registration, protection against infringements, and regional filings across Central America.
Need Assistance Registering a Trademark in Costa Rica?
Let AG Legal guide your application, opposition handling, and corporate name protections with confidence and legal efficiency.
Costa Rica Brand Protection: Expert guide for Trademarks
🛡️ Brand Protection in Costa Rica: Safeguard Your Trademark from Counterfeit Products
Your company has invested time, money, and effort building a unique brand—a strong identity through marketing, advertising, web presence, and consumer trust. Yet in Costa Rica, counterfeiters may be exploiting your brand by printing your mark on illegal products.
These counterfeit items are not just unlawful—they are dangerous. Made with substandard materials, they mislead consumers, harm your brand’s reputation, and undermine the quality your customers expect.
Counterfeiters show no regard for labor laws, taxes, or product safety—they only profit off your brand’s reputation with toxic, cheaply-made goods.
✅ Why Brand Protection in Costa Rica Matters
- Registering your mark grants you exclusive legal rights to its use.
- Prevents unauthorized use and safeguards your quality standards.
- Mitigates risks of unfair competition and preserves consumer trust.
🚨 Raids on Counterfeit Sellers and Associated Crimes
Costa Rican authorities with support of our legal team have conducted raids on retail stores selling counterfeit goods—especially counterfeit athletic sneakers bearing top-brand logos. These interventions aim to eradicate the black market and address related crimes such as customs corruption, human trafficking, drug distribution, and employment without social security or safety insurance.
Counterfeit products often contain toxic materials. Studies show they cannot be safely recycled—even for items like school desks—due to hazardous chemical composition. Risks include deformities in developing children’s feet, injuries in adults from poor shoe design, and longer-term toxicological harm.
While these products may seem inexpensive, the societal, environmental, and health costs far outweigh any short-term savings.
⚖️ Legal Framework: Counterfeiting as a Criminal Offense
Costa Rica’s Intellectual Property Enforcement Act classifies the counterfeiting, sale, storage, or distribution of fake products as a criminal offense. Convictions may result in penalties of up to five years in prison.
Although it’s a public offense, prosecutions require a formal complaint from the victim—typically the trademark owner or its legal representative—to activate the process.
To file a complaint, your trademark must be registered and you must present evidence proving that the product is counterfeit. You don’t need to know the identity of the infringer—Costa Rican prosecutors will investigate with the authority provided by law.
🔍 Collaboration: Brand Owners & Prosecutors
- The trademark owner must formally submit a complaint to initiate prosecution.
- AG Legal works closely with authorities to conduct civil and criminal proceedings.
- This partnership strengthens enforcement and better protects consumers and rights holders.
📝 Trademark Registration & Enforcement Process
- Register your trademark with the Industrial Property Registry.
- Conduct prior clearance searches for similarity conflicts.
- File the application and maintain follow-up until grant.
- Monitor marketplace to detect counterfeit use.
- Bring administrative, civil, or criminal enforcement actions as needed.
AG Legal delivers integrated brand protection strategies from registration to enforcement and operational support.
💡 Frequently Asked Questions
- What health risks do counterfeit products pose?
- They often contain toxic substances leading to foot deformities, injuries, and environmental hazards.
- Can I file a trademark complaint without naming the infringer?
- Yes—if your mark is registered and you provide evidence, prosecutors can investigate and identify the infringer.
- Do raids on counterfeit sellers work?
- Yes—these operations dismantle illicit networks, curb consumer risk, and enforce brand integrity.
🤝 Why Choose AG Legal as Your Brand Protection Partner?
- Over 15 years’ experience protecting global brands.
- Direct coordination with Costa Rican prosecutors and officials.
- Bilingual legal team with international IP litigation expertise.
Protect Your Brand and Your Customers Today
From trademark registration to enforcement and legal complaints, AG Legal offers full support to defend your brand.
Costa Rica Labor Laws and Employment Regulations
Costa Rica Labor Laws:
Essential Insights for Employers and Employees
Contracts, Leave, Wages and more
Costa Rica’s Labor Code ensures justice and clarity for both companies and workers.
This comprehensive guide details formal contracts, working hours, wage law, mandatory bonuses, social security, leave, and the exact compliance steps every business and HR leader must know.
1. What is Costa Rica’s Labor Code, and Why is it Important?
The Labor Code forms the backbone of employment relations in Costa Rica. It regulates:
- Work hours (day/night), overtime, breaks, and minimum wage rates
- Social security/retirement, maternity/paternity leave, and vacation
- Legal severance, termination, documentation, and anti-discrimination measures
Compliance with labor law is mandatory and protects both the business and the employee.
2. How Do Employment Contracts Work in Costa Rica?
An employment contract formalizes rights and duties—both verbal and written contracts are valid, but a written contract is strongly advised. Contracts must specify:
- Work hours, duties and wage (never below legal minimum)
- All leave and social security arrangements
Contract types:
– Indefinite-term: default and best for job stability.
– Fixed-term: only for special projects, up to 1 year (5 years for some roles); continuous renewals convert it to indefinite.
Employers must ensure contracts always comply with wage and leave laws to avoid later disputes or claims.
3. Legal Work Hours and Overtime Rules
- Work week: Max 48 hours, 6 days (Mon–Sat).
- Day shift: Up to 9.2 hours daily (5 days role). Night shift: Max 6 hours/day, 36/week.
- Overtime: Paid at 1.5x regular wage. Max 4 hours/day overtime.
- Breaks: At least 1 hour meal break in full shift.
4. Minimum Wage Requirements
Minimum wage is updated annually by the Ministry of Labor per occupation/sector.
Example: 2025 Receptionist (private sector): ₡399,203.69/month.
Employers must never pay less than the official wage for the applicable position, and must document all payments.
Aguinaldo (13th Salary) & Annual Bonus
The aguinaldo is a mandatory, tax-free bonus paid by December 20th each year. It equals 1/12 of total annual earnings, covering all wages/overtime/bonuses. Missing this payment triggers legal penalties.
5. Leave Entitlements: Vacation, Maternity, and Paternity
- Vacation: 2 paid weeks/year after 50 weeks of service.
- Maternity Leave: 4 months paid (1 before, 3 after the birth), 100% salary, employer & CCSS.
- Paternity Leave: 8 paid days (2/week over 4 weeks after birth), split 50/50 employer/CCSS, plus extra leave if mother passes away.
Compliance with these rules is mandatory and demonstrates best practices in equal opportunity and family support.
6. Employer Obligations: Social Security & Insurance
Employers must contribute to the CCSS (health/welfare/pension) and INS (workplace risks).
Requirements:
- Register all employees with CCSS within 8 days of hiring
- Pay salary-based contributions (also for disability/retirement)
Non-registration or late payments are heavily penalized.
7. Severance, Termination & Health Incapacity
Severance: If terminated without cause, employer owes severance based on years worked, paid per official formula.
Termination: Must follow protocol (just cause, notice, severance if applicable).
Health incapacity pay:
- First 3 days: Employer pays 50% of salary
- Day 4+: CCSS pays 60% of average last 3 months’ salary to employee (with doctor’s note and up-to-date payments)
- INS (not the CCSS) pays if incapacity is due to workplace injury/disease
Key: Employers must promptly notify CCSS and maintain accurate records.
📋 Labor Law Summary Table (2025)
Area
Law / Standard
Details
Work Week
48hr (6 days)
Up to 9.2h at 5 day role; 6h night
Overtime
1.5x hourly wage, max 4h/day
Mandatory if > normal
Min. Wage 2025
₡399,203.69/month
Receptionist, private sector; see full Ministry table at Costa Rica Wage List 2025
Aguinaldo (13th salary)
Mandatory, 1/12 of annual pay
Tax-free, due by Dec 20
Vacation
2 paid weeks/year
After 50 weeks’ work
Maternity Leave
4 months 100% pay
One pre-birth, three post-birth
Paternity Leave
8 days paid (within 4 weeks)
50% employer, 50% CCSS
Sick Leave
50% employer (3d), then 60% CCSS
Certified incapacity
Contract Types
Indefinite / Fixed-term
Must be clear, written, and compliant
Severance
Proportional per years worked
Unless “for cause”
Social Security
Full employer/employee
Health, pension, disability, risks, INS/CCSS
8. Key Steps for Employers to Comply
- Draft clear, written employment contracts for all workers (in Spanish or bilingual, but Spanish governs disputes).
- Register all employees in the CCSS within 8 days of contract start.
- Ensure payroll meets/exceeds current legal minimum wages for every post.
- Maintain detailed payroll, social security and leave records for audits.
- Pay overtime, benefits (vacation/aginaldo), and severance as needed.
- Report any incapacity/accident promptly (to CCSS or INS as required).
- Stay up to date: Wage tables and labor rules change annually. Check every January.
Tip: Never pay below the tabled minimum! And always update labor practices after regulatory updates for 2025 and beyond.
Risks & Penalties of Non-Compliance
- Fines and forced back-pay if you pay less than minimum wage, don’t pay overtime, or skip mandates.
- Social security fraud = very high penalties, plus claims for medical expenses.
- Employee lawsuits can lead to workplace freezes, audits, and reputational harm.
- Leaving out leave pay (vacation, maternity, etc.) triggers fines and may bar public contracts for your business.
Protect your company: Schedule legal training for HR and regular legal checkups.
Key Takeaways: Costa Rica’s Labor Laws in Action
- The Labor Code mandates written contracts, fair wages, paid leave and social security.
- Documentation is your shield—keep accurate and up-to-date records.
- Compliance is strictly enforced; violations result in swift penalties.
- Expert legal guidance minimizes risk and ensures workplace well-being.
Contact AG Legal Today for Expert Labor Law Assistance
Free legal consultation: info@aglegal.com
Some Important Aspects About the Christmas Bonus
Next December, many Costa Rican workers will receive their aguinaldo or “thirteenth month.”
The Christmas bonus is the additional payment received by every salaried worker for having worked for the same employer for more than one calendar month. Their payment is mandatory by law and is applicable to salaried workers in the public and private sectors if they work part-time, full-time, or hourly, of whatever kind they are and whatever the way in which they perform their work.
The maximum date for the payment of the Christmas bonus is the first twenty days of December of each year. If the employer does not comply with the above, he may incur an infraction of undue withholding of salary, which is a serious offense and will be credited with the fine established by law.
For the calculation of the bonus, all ordinary and extraordinary salaries, salary in kind, overtime, commissions, and any other incentive that the worker has accrued, from the period between the first of December of a year to the thirtieth of November of the following year, must be added, the resulting amount is divided by twelve and this result is the amount that must be paid for the bonus.
If the worker does not work the full year, in the same way, the calculation of the Christmas bonus is obtained, d the average of the salaries and other amounts indicated, divided by twelve, the result will be the amount of bonus that corresponds to the salaried worker.
The period during which the worker is incapacitated due to illness, given the suspension of the employment contract, cannot be considered for the purposes of calculating the Christmas bonus.
In the case of women who enjoy disability due to maternity leave, the calculation of the Christmas bonus is made on one hundred percent of their salary and is the only case of a disability that is considered for the purposes of calculating the Christmas bonus.
However, if during her pregnancy, the woman becomes incapacitated due to illness, these periods are not considered for the calculation of the Christmas bonus. The Christmas bonus may not be the subject of compensation, sale, or assignment, nor may it be seized, except for alimony.
To conclude, it is important to know that the Christmas bonus should not be reduced for social charges, taxes, or income tax.
Can a Worker be Fired for Late Arrivals?
Justified Dismissal for Employee Lateness in Costa Rica
Can Lateness Lead to Justified Dismissal?
In Costa Rica, under Article 81 of the Labor Code, repeated and unjustified lateness can be considered “gross misconduct” and may legally justify dismissal without severance or notice.
A single late arrival does not qualify, but multiple documented infractions, combined with prior written warnings, can meet the legal threshold for termination.
Key employer steps before dismissal:
- Document each late arrival in writing.
- Issue monthly notices summarizing lateness counts.
- Apply progressive discipline before termination.
Understanding Justified Dismissal for Lateness
1. Legal Basis
Article 81 of the Costa Rican Labor Code lists causes for dismissal without employer liability. While “lateness” is not specifically named, subparagraph (general clause) allows dismissal for
“gross misconduct to the obligations imposed by the employment contract.”
2. When Lateness Becomes Dismissible
Courts and the Ministry of Labor have held that repeated, unjustified lateness can be “gross misconduct” if:
- It shows lack of responsibility and commitment.
- It occurs despite prior written warnings.
- It reaches a quantitatively significant threshold.
3. Official Guidance — Ministry of Labor & CCSS
Legal opinion DAJ-AE-219-2008 clarifies:
An employer may terminate without liability if the employee accumulates more than six late arrivals in three consecutive months,
provided the first two infractions were sanctioned and the worker was warned to correct the behavior.
4. Employer Step-by-Step
- Document lateness: record every incident with date and time.
- Issue written warnings: after each late arrival, deliver formal notification.
- Monthly summary: total infractions at month’s end and share with the employee.
- Progressive discipline: apply sanctions (per Internal Work Regulations) before dismissal.
- Dismissal decision: if thresholds are met and behavior persists, proceed per Article 81.
5. Case-by-Case Analysis
Each situation must be evaluated individually. Factors include the recurrence pattern, justification offered by the employee, internal policies, and prior disciplinary actions.
For employers and HR professionals: consulting with a Costa Rica labor lawyer before proceeding ensures compliance with procedural and substantive labor law requirements.
Official Costa Rica Jobs and Salaries List 2025
*Note: Monthly salaries can be improved depending on experience, education, and position level. Hourly wage = monthly salary ÷ 30 ÷ 8.
Trademark in Costa Rica – Protect Your Brand & Name in 2025
🛡️ Trademark in Costa Rica: Guide After the Company Name Reform
With the 2025 reform in Costa Rica, registering your trademark and your commercial name has become essential to protect your brand identity and business entity legally.
✅ What Is a Trademark in Costa Rica?
In Costa Rica, a trademark is any word, logo, image, figure or sign—or combination thereof—that distinguishes goods or services in the marketplace. The registration process is conducted through the Industrial Property Registry.
- Word marks (denominative)
- Figurative marks (logos)
- Mixed marks (word + image)
- Three-dimensional or olfactory marks
🔎 Why You Must Register Both Trademark and Commercial Name
Post-reform, newly formed companies can no longer include a trade name in their articles of incorporation—making registration of a commercial name the only legal way to protect your company identity.
A trademark protects your products and services, while a commercial name protects the business entity itself—whether it’s a physical store or an online venture.
- 🛡️ Exclusive legal protection
- 🌎 Clear market identity
- 💰 Intangible asset with commercial value
- 📄 Enables licensing, franchising and regional expansion
📝 Trademark vs. Commercial Name: Key Differences
| Feature | Trademark | Commercial Name |
|---|---|---|
| Object | Products/Services | Business or Company |
| Registry | Industrial Property Registry | Industrial Property Registry |
| Length | 10 years (renewable) | Unlimited while in use |
| Protection | Against similar marks | Against confusingly similar names |
🏛️ How to Register Your Trademark in Costa Rica
AG Legal recommends professional legal assistance before investing in branding, packaging or advertising. Our IP team handles:
- Prior search in the National Registry
- Filing application with Industrial Property Registry
- Publication in La Gaceta for two months
- Handling objections or appeals
- Issuance of ownership certificate
📚 Legal Basis & Name Protection
Under Article 2 of the Trademark Law, a commercial name identifies and distinguishes a business. Article 66 allows enforcement actions against confusingly similar names.
With the Company Name Reform of 2025, legal protection of your commercial name is essential to maintain exclusivity in the marketplace.
💼 AG Legal: Your IP Partner in Costa Rica
AG Legal offers comprehensive legal services for trademark and commercial name registration, protection against infringements, and regional filings across Central America.
Need Assistance Registering a Trademark in Costa Rica?
Let AG Legal guide your application, opposition handling, and corporate name protections with confidence and legal efficiency.
Costa Rica Brand Protection: Expert guide for Trademarks
🛡️ Brand Protection in Costa Rica: Safeguard Your Trademark from Counterfeit Products
Your company has invested time, money, and effort building a unique brand—a strong identity through marketing, advertising, web presence, and consumer trust. Yet in Costa Rica, counterfeiters may be exploiting your brand by printing your mark on illegal products.
These counterfeit items are not just unlawful—they are dangerous. Made with substandard materials, they mislead consumers, harm your brand’s reputation, and undermine the quality your customers expect.
Counterfeiters show no regard for labor laws, taxes, or product safety—they only profit off your brand’s reputation with toxic, cheaply-made goods.
✅ Why Brand Protection in Costa Rica Matters
- Registering your mark grants you exclusive legal rights to its use.
- Prevents unauthorized use and safeguards your quality standards.
- Mitigates risks of unfair competition and preserves consumer trust.
🚨 Raids on Counterfeit Sellers and Associated Crimes
Costa Rican authorities with support of our legal team have conducted raids on retail stores selling counterfeit goods—especially counterfeit athletic sneakers bearing top-brand logos. These interventions aim to eradicate the black market and address related crimes such as customs corruption, human trafficking, drug distribution, and employment without social security or safety insurance.
Counterfeit products often contain toxic materials. Studies show they cannot be safely recycled—even for items like school desks—due to hazardous chemical composition. Risks include deformities in developing children’s feet, injuries in adults from poor shoe design, and longer-term toxicological harm.
While these products may seem inexpensive, the societal, environmental, and health costs far outweigh any short-term savings.
⚖️ Legal Framework: Counterfeiting as a Criminal Offense
Costa Rica’s Intellectual Property Enforcement Act classifies the counterfeiting, sale, storage, or distribution of fake products as a criminal offense. Convictions may result in penalties of up to five years in prison.
Although it’s a public offense, prosecutions require a formal complaint from the victim—typically the trademark owner or its legal representative—to activate the process.
To file a complaint, your trademark must be registered and you must present evidence proving that the product is counterfeit. You don’t need to know the identity of the infringer—Costa Rican prosecutors will investigate with the authority provided by law.
🔍 Collaboration: Brand Owners & Prosecutors
- The trademark owner must formally submit a complaint to initiate prosecution.
- AG Legal works closely with authorities to conduct civil and criminal proceedings.
- This partnership strengthens enforcement and better protects consumers and rights holders.
📝 Trademark Registration & Enforcement Process
- Register your trademark with the Industrial Property Registry.
- Conduct prior clearance searches for similarity conflicts.
- File the application and maintain follow-up until grant.
- Monitor marketplace to detect counterfeit use.
- Bring administrative, civil, or criminal enforcement actions as needed.
AG Legal delivers integrated brand protection strategies from registration to enforcement and operational support.
💡 Frequently Asked Questions
- What health risks do counterfeit products pose?
- They often contain toxic substances leading to foot deformities, injuries, and environmental hazards.
- Can I file a trademark complaint without naming the infringer?
- Yes—if your mark is registered and you provide evidence, prosecutors can investigate and identify the infringer.
- Do raids on counterfeit sellers work?
- Yes—these operations dismantle illicit networks, curb consumer risk, and enforce brand integrity.
🤝 Why Choose AG Legal as Your Brand Protection Partner?
- Over 15 years’ experience protecting global brands.
- Direct coordination with Costa Rican prosecutors and officials.
- Bilingual legal team with international IP litigation expertise.
Protect Your Brand and Your Customers Today
From trademark registration to enforcement and legal complaints, AG Legal offers full support to defend your brand.
Costa Rica Labor Laws and Employment Regulations
Costa Rica Labor Laws:
Essential Insights for Employers and Employees
Costa Rica’s Labor Code ensures justice and clarity for both companies and workers.
This comprehensive guide details formal contracts, working hours, wage law, mandatory bonuses, social security, leave, and the exact compliance steps every business and HR leader must know.
1. What is Costa Rica’s Labor Code, and Why is it Important?
The Labor Code forms the backbone of employment relations in Costa Rica. It regulates:
- Work hours (day/night), overtime, breaks, and minimum wage rates
- Social security/retirement, maternity/paternity leave, and vacation
- Legal severance, termination, documentation, and anti-discrimination measures
Compliance with labor law is mandatory and protects both the business and the employee.
2. How Do Employment Contracts Work in Costa Rica?
An employment contract formalizes rights and duties—both verbal and written contracts are valid, but a written contract is strongly advised. Contracts must specify:
- Work hours, duties and wage (never below legal minimum)
- All leave and social security arrangements
Contract types:
– Indefinite-term: default and best for job stability.
– Fixed-term: only for special projects, up to 1 year (5 years for some roles); continuous renewals convert it to indefinite.
Employers must ensure contracts always comply with wage and leave laws to avoid later disputes or claims.
3. Legal Work Hours and Overtime Rules
- Work week: Max 48 hours, 6 days (Mon–Sat).
- Day shift: Up to 9.2 hours daily (5 days role). Night shift: Max 6 hours/day, 36/week.
- Overtime: Paid at 1.5x regular wage. Max 4 hours/day overtime.
- Breaks: At least 1 hour meal break in full shift.
4. Minimum Wage Requirements
Minimum wage is updated annually by the Ministry of Labor per occupation/sector.
Example: 2025 Receptionist (private sector): ₡399,203.69/month.
Employers must never pay less than the official wage for the applicable position, and must document all payments.
Aguinaldo (13th Salary) & Annual Bonus
The aguinaldo is a mandatory, tax-free bonus paid by December 20th each year. It equals 1/12 of total annual earnings, covering all wages/overtime/bonuses. Missing this payment triggers legal penalties.
5. Leave Entitlements: Vacation, Maternity, and Paternity
- Vacation: 2 paid weeks/year after 50 weeks of service.
- Maternity Leave: 4 months paid (1 before, 3 after the birth), 100% salary, employer & CCSS.
- Paternity Leave: 8 paid days (2/week over 4 weeks after birth), split 50/50 employer/CCSS, plus extra leave if mother passes away.
Compliance with these rules is mandatory and demonstrates best practices in equal opportunity and family support.
6. Employer Obligations: Social Security & Insurance
Employers must contribute to the CCSS (health/welfare/pension) and INS (workplace risks).
Requirements:
- Register all employees with CCSS within 8 days of hiring
- Pay salary-based contributions (also for disability/retirement)
Non-registration or late payments are heavily penalized.
7. Severance, Termination & Health Incapacity
Severance: If terminated without cause, employer owes severance based on years worked, paid per official formula.
Termination: Must follow protocol (just cause, notice, severance if applicable).
Health incapacity pay:
- First 3 days: Employer pays 50% of salary
- Day 4+: CCSS pays 60% of average last 3 months’ salary to employee (with doctor’s note and up-to-date payments)
- INS (not the CCSS) pays if incapacity is due to workplace injury/disease
Key: Employers must promptly notify CCSS and maintain accurate records.
📋 Labor Law Summary Table (2025)
| Area | Law / Standard | Details |
|---|---|---|
| Work Week | 48hr (6 days) | Up to 9.2h at 5 day role; 6h night |
| Overtime | 1.5x hourly wage, max 4h/day | Mandatory if > normal |
| Min. Wage 2025 | ₡399,203.69/month | Receptionist, private sector; see full Ministry table at Costa Rica Wage List 2025 |
| Aguinaldo (13th salary) | Mandatory, 1/12 of annual pay | Tax-free, due by Dec 20 |
| Vacation | 2 paid weeks/year | After 50 weeks’ work |
| Maternity Leave | 4 months 100% pay | One pre-birth, three post-birth |
| Paternity Leave | 8 days paid (within 4 weeks) | 50% employer, 50% CCSS |
| Sick Leave | 50% employer (3d), then 60% CCSS | Certified incapacity |
| Contract Types | Indefinite / Fixed-term | Must be clear, written, and compliant |
| Severance | Proportional per years worked | Unless “for cause” |
| Social Security | Full employer/employee | Health, pension, disability, risks, INS/CCSS |
8. Key Steps for Employers to Comply
- Draft clear, written employment contracts for all workers (in Spanish or bilingual, but Spanish governs disputes).
- Register all employees in the CCSS within 8 days of contract start.
- Ensure payroll meets/exceeds current legal minimum wages for every post.
- Maintain detailed payroll, social security and leave records for audits.
- Pay overtime, benefits (vacation/aginaldo), and severance as needed.
- Report any incapacity/accident promptly (to CCSS or INS as required).
- Stay up to date: Wage tables and labor rules change annually. Check every January.
Risks & Penalties of Non-Compliance
- Fines and forced back-pay if you pay less than minimum wage, don’t pay overtime, or skip mandates.
- Social security fraud = very high penalties, plus claims for medical expenses.
- Employee lawsuits can lead to workplace freezes, audits, and reputational harm.
- Leaving out leave pay (vacation, maternity, etc.) triggers fines and may bar public contracts for your business.
Key Takeaways: Costa Rica’s Labor Laws in Action
- The Labor Code mandates written contracts, fair wages, paid leave and social security.
- Documentation is your shield—keep accurate and up-to-date records.
- Compliance is strictly enforced; violations result in swift penalties.
- Expert legal guidance minimizes risk and ensures workplace well-being.
Free legal consultation: info@aglegal.com
Some Important Aspects About the Christmas Bonus
Next December, many Costa Rican workers will receive their aguinaldo or “thirteenth month.”
The Christmas bonus is the additional payment received by every salaried worker for having worked for the same employer for more than one calendar month. Their payment is mandatory by law and is applicable to salaried workers in the public and private sectors if they work part-time, full-time, or hourly, of whatever kind they are and whatever the way in which they perform their work.
The maximum date for the payment of the Christmas bonus is the first twenty days of December of each year. If the employer does not comply with the above, he may incur an infraction of undue withholding of salary, which is a serious offense and will be credited with the fine established by law.
For the calculation of the bonus, all ordinary and extraordinary salaries, salary in kind, overtime, commissions, and any other incentive that the worker has accrued, from the period between the first of December of a year to the thirtieth of November of the following year, must be added, the resulting amount is divided by twelve and this result is the amount that must be paid for the bonus.
If the worker does not work the full year, in the same way, the calculation of the Christmas bonus is obtained, d the average of the salaries and other amounts indicated, divided by twelve, the result will be the amount of bonus that corresponds to the salaried worker.
The period during which the worker is incapacitated due to illness, given the suspension of the employment contract, cannot be considered for the purposes of calculating the Christmas bonus.
In the case of women who enjoy disability due to maternity leave, the calculation of the Christmas bonus is made on one hundred percent of their salary and is the only case of a disability that is considered for the purposes of calculating the Christmas bonus.
However, if during her pregnancy, the woman becomes incapacitated due to illness, these periods are not considered for the calculation of the Christmas bonus. The Christmas bonus may not be the subject of compensation, sale, or assignment, nor may it be seized, except for alimony.
To conclude, it is important to know that the Christmas bonus should not be reduced for social charges, taxes, or income tax.
Can a Worker be Fired for Late Arrivals?
Justified Dismissal for Employee Lateness in Costa Rica
Can Lateness Lead to Justified Dismissal?
In Costa Rica, under Article 81 of the Labor Code, repeated and unjustified lateness can be considered “gross misconduct” and may legally justify dismissal without severance or notice.
A single late arrival does not qualify, but multiple documented infractions, combined with prior written warnings, can meet the legal threshold for termination.
Key employer steps before dismissal:
- Document each late arrival in writing.
- Issue monthly notices summarizing lateness counts.
- Apply progressive discipline before termination.
Understanding Justified Dismissal for Lateness
1. Legal Basis
Article 81 of the Costa Rican Labor Code lists causes for dismissal without employer liability. While “lateness” is not specifically named, subparagraph (general clause) allows dismissal for
“gross misconduct to the obligations imposed by the employment contract.”
2. When Lateness Becomes Dismissible
Courts and the Ministry of Labor have held that repeated, unjustified lateness can be “gross misconduct” if:
- It shows lack of responsibility and commitment.
- It occurs despite prior written warnings.
- It reaches a quantitatively significant threshold.
3. Official Guidance — Ministry of Labor & CCSS
Legal opinion DAJ-AE-219-2008 clarifies:
An employer may terminate without liability if the employee accumulates more than six late arrivals in three consecutive months,
provided the first two infractions were sanctioned and the worker was warned to correct the behavior.
4. Employer Step-by-Step
- Document lateness: record every incident with date and time.
- Issue written warnings: after each late arrival, deliver formal notification.
- Monthly summary: total infractions at month’s end and share with the employee.
- Progressive discipline: apply sanctions (per Internal Work Regulations) before dismissal.
- Dismissal decision: if thresholds are met and behavior persists, proceed per Article 81.
5. Case-by-Case Analysis
Each situation must be evaluated individually. Factors include the recurrence pattern, justification offered by the employee, internal policies, and prior disciplinary actions.
For employers and HR professionals: consulting with a Costa Rica labor lawyer before proceeding ensures compliance with procedural and substantive labor law requirements.