How to hire employees in Costa Rica through an employer of record
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Hiring an employee in Costa Rica costs 26.83% of gross pay in employer charges in 2026 (CCSS social security plus Worker Protection Law contributions, the largest being 9.25% for health and maternity), according to EY's alert on the January 2026 increase (a secondary source), and EOR providers add $199 a month (Payoneer Workforce Management, formerly Skuad) to $699 (Oyster), checked October 2026. The rule US companies most often miss is cesantia: after 3 months, ending a contract without cause owes notice plus a severance payment set by length of service, so Costa Rica is not an at-will country.
An employer of record in Costa Rica is a Costa Rican company that hires your worker on a local contract, registers them with the CCSS (Caja Costarricense de Seguro Social), buys the required INS work-risk policy and pays the employer charges, while you direct the day-to-day work.
- Currency
- CRC
On this page
- Costa Rica's employment rules, from pay floors to cesantia
- Employment costs and rules in Costa Rica
- What an EOR charges to employ someone in Costa Rica
- One Costa Rican employee on CRC 20.2 million a year
- Deposits and exit costs for a Costa Rican hire
- Picking an EOR for Costa Rica
- Costa Rican contractors (servicios profesionales)
- Opening a Costa Rican company instead
Costa Rica's employment rules, from pay floors to cesantia
Charges went up on January 1, 2026
The employer's pension (IVM) contribution rose from 5.42% to 5.58% under the CCSS's scheduled IVM increases, lifting the employer total from 26.67% to 26.83%. The worker's share rose from 10.67% to 10.83%. A quote that still uses 26.67% is built on the 2025 rate.
Work-risk insurance is a separate bill
On top of the 26.83%, the employer carries an INS riesgos del trabajo policy priced by activity. Ask the EOR what it pays for your hire's job.
Minimum wage by occupation
Decreto 45303-MTSS (La Gaceta, December 5, 2025), as reported by the law firm AG Legal, raised minimum wages 1.63% from January 1, 2026. Monthly examples: CRC 373,092.30 for unskilled generic work, CRC 419,755.80 for skilled generic work, CRC 664,078.07 for a university bachiller and CRC 796,921.00 for a licenciado.
Notice and cesantia
The Poder Judicial's guide to preaviso and cesantia sets the rules for dismissal without cause:
- Trial period: the first 3 months. No notice and no cesantia are owed.
- Notice: 1 week after 3 to 6 months of service, 15 days after 6 to 12 months, 1 month after a year, or pay in lieu.
- Cesantia: 7 days' pay after 3 to 6 months and 14 days after 6 to 12 months. From one year, it is counted in days per year of service, starting at 19.5, peaking at 22 and settling at 20 from year 13, and only the last 8 years count.
We have not yet confirmed from an official source Costa Rica's aguinaldo (year-end bonus), vacation days, public holidays, payroll frequency or working hours, because the CCSS site blocks automated reading. Ask your EOR to state each in the contract.
Employment costs and rules in Costa Rica
| Item | Costa Rica |
|---|---|
| Employer social contributions | 26.83% (CCSS and Worker Protection Law charges), plus a separate INS work-risk policy (riesgos del trabajo) priced by activity |
| What the employer pays | Health and maternity (SEM) 9.25%; Pensions (IVM) 5.58% (up from 5.42% on Jan 1, 2026); Family allowances (FODESAF) 5.00%; IMAS 0.50%; INA 1.50% (not owed by non-farm employers with fewer than 5 permanent staff, per secondary source); Banco Popular employer quota 0.25%; Banco Popular LPT contribution 0.25%; Labor capitalization fund (FCL) 1.50%; Complementary pension (ROP/OPC) 2.00%; INS LPT contribution 1.00% (unconfirmed: the secondary table omits it but its stated total of 26.83% needs it); INS work-risk policy: separate premium, varies by activity |
| Employee contributions | 10.83% (SEM 5.50 + IVM 4.33 + Banco Popular 1.00) |
| Minimum wage | Set by occupation (Decreto 45303-MTSS, La Gaceta Dec 5, 2025, from Jan 1, 2026, +1.63%): unskilled generic CRC 373,092.30/mo; skilled generic CRC 419,755.80/mo; university bachiller CRC 664,078.07/mo; licenciado CRC 796,921.00/mo (secondary) |
| Probation | 3 months (no notice owed before 3 months as this is the trial period, per Poder Judicial guide) |
| Notice period | Under 3 months: none; 3 to 6 months: 1 week; 6 to 12 months: 15 days; over 1 year: 1 month (or pay in lieu) |
| Severance | Cesantia on dismissal without cause: 7 days (3 to 6 months), 14 days (6 to 12 months), then per year of service 19.5, 20, 20.5, 21, 21.24, 21.5, 22, 22, 22, 21.5, 21, 20.5 and 20 days (year 13 on), counting only the last 8 years |
| Sample salary used | CRC 20,200,000 per year (CRC 1,683,333/mo), about USD 40,000 at an assumed 505 CRC/USD (rate not fetched) |
| Employer cost on that salary | 26.83% (CRC 5,419,660) confirmed; 35.16% (CRC 7,102,993) if the unconfirmed aguinaldo of 8.33% (CRC 1,683,333) is added; INS work-risk policy extra |
Checked October 16, 2026. Source type: secondary (EY alert for the 2026 IVM change and totals; Alegra and AG Legal for breakdown and minimum wages); official (Poder Judicial) for notice and cesantia. ccss.sa.cr blocks automated reading. Sources are listed at the end of this page.
What an EOR charges to employ someone in Costa Rica
| Provider | EOR fee per employee per month | Deposit | Entity model (provider claim) |
|---|---|---|---|
| Payoneer Workforce Management | from $199 | None listed | Claims owned entities across APAC, MEA, Europe and the Americas |
| Pebl | $399 | Not listed | About 90% of employees on Pebl-owned entities |
| Playroll | from $399 | One month's salary per employee, refundable | No clear owned-entity claim |
| Rivermate | $319 to $639 | Not stated | Claims 38 owned entities |
| Multiplier | $459 (annual) or $499 (monthly) | Sized from costs, fees and notice period (method published, no fixed amount) | Claims owned entities in 160+ countries |
| Rippling EOR | Quote only (third-party reference: $499) | Not listed | Claims Rippling entities; no partner mention |
| Deel | $599 | Not stated by Deel | Claims owned entities in 130+ countries |
| Remote | from $599 | Waived for startups; otherwise not stated | Claims 100% owned entities in 90+ countries |
| Atlas | from $599 | Not published | Claims owned entities in 160+ countries |
| Papaya Global | from $650 | Refundable deposit, amount not stated | Uses in-country partners |
| Oyster | $699 | At least one month of total service cost, refundable (per its terms) | Owned entities and partners |
| Globalization Partners (G-P) | Quote only | Not stated | Information page claims 100+ wholly owned entities |
Source: each provider’s pricing page, checked October 16, 2026. Fees are the provider’s charge on top of salary and the employer contributions above. Some providers adjust prices by country.
One Costa Rican employee on CRC 20.2 million a year
Our sample salary is CRC 20,200,000 a year (CRC 1,683,333 a month). That is about USD 40,000 at an assumed 505 colones per dollar; we did not fetch an official rate, so the EOR fee stays in dollars.
| Charge | Rate | Per year (CRC) |
|---|---|---|
| Health and maternity (SEM) | 9.25% | 1,868,500 |
| Pensions (IVM) | 5.58% | 1,127,160 |
| Family allowances (FODESAF) | 5.00% | 1,010,000 |
| Complementary pension (ROP) | 2.00% | 404,000 |
| INA training | 1.50% | 303,000 |
| Labor capitalization fund (FCL) | 1.50% | 303,000 |
| IMAS | 0.50% | 101,000 |
| Banco Popular employer quota | 0.25% | 50,500 |
| Banco Popular LPT contribution | 0.25% | 50,500 |
| Remaining point to reach the 26.83% total | 1.00% | 202,000 |
| Total employer charges | 26.83% | 5,419,660 |
| Unconfirmed: aguinaldo, if it is one twelfth of pay | 8.33% | 1,683,333 |
| Charges plus aguinaldo, if confirmed | 35.16% | 7,102,993 |
Source: EY Costa Rica tax alert (26.83% total and 2026 IVM change); Alegra 2026 breakdown (secondary). INS work-risk premium not included. Checked Oct 2026.
Alegra's line items add to 25.83%, CRC 5,217,660, while EY confirms the 26.83% total. The missing point is most likely the 1% INS contribution under the Worker Protection Law, which we have not confirmed line by line. 26.83% x 20,200,000 = CRC 5,419,660. The year-end aguinaldo is commonly described as one twelfth of a year's pay (CRC 1,683,333 here), which would lift the cost to 35.16%. We have not confirmed that rule from an official source, so 26.83% is the confirmed share and the aguinaldo is shown apart.
The EOR fee then adds $7,188 a year at $599, $4,788 at $399 (Pebl, Playroll), $8,388 at $699 (Oyster) or $2,388 at the $199 entry price of Payoneer Workforce Management. A secondary source says non-farm employers with fewer than 5 permanent staff do not owe INA; under an EOR, ask the provider whose headcount it applies, since it is the legal employer. Try other salaries in the international cost calculator.
Deposits and exit costs for a Costa Rican hire
Cesantia turns termination into a budget item, and it can raise deposits. Multiplier sets its deposit from employment costs, fees and notice periods; Oyster's terms ask for at least one month of total service cost, credited about 60 days after the end date; Playroll takes one month's salary. Ask whether termination costs are passed through at cost. Oyster and Playroll list no termination fee; Multiplier needs 30 days to process one.
Picking an EOR for Costa Rica
Our scores rank Multiplier at 79/100 and Oyster at 64/100, ahead of Remote (62), Playroll (60), Pebl (57) and Deel (54), as explained in how we score. No provider publishes a Costa Rica-only fee. Ask for the INS work-risk rate and whether the quote already uses the 2026 IVM rate. Compare the top EOR providers, Deel, Remote and Oyster.
Costa Rican contractors (servicios profesionales)
Paying a Costa Rican professional on invoices avoids the 26.83% charges. If the work is full-time and directed by you, it can be treated as employment, with back CCSS charges plus notice and cesantia on termination. Compare contractor payment platforms or a contractor of record.
Opening a Costa Rican company instead
A local company means CCSS and INS registration and a payroll provider, set against $7,188 a year per EOR hire at $599. See EOR versus your own entity and the EOR fee comparison.
Frequently asked questions
How much does it cost to hire an employee in Costa Rica?
Did CCSS rates change in 2026?
What severance (cesantia) applies in Costa Rica?
How long is probation in Costa Rica?
What is the minimum wage in Costa Rica in 2026?
Sources (12)
- Pebl: Pebl EOR pricing (checked Oct 16, 2026)
- Playroll: Playroll pricing (checked Oct 16, 2026)
- Multiplier: Multiplier pricing (checked Oct 16, 2026)
- Deel: Deel pricing (checked Oct 16, 2026)
- Remote: Remote pricing (checked Oct 16, 2026)
- Oyster: Oyster pricing (checked Oct 16, 2026)
- Payoneer Workforce Management (formerly Skuad): Skuad pricing (checked Oct 16, 2026)
- Oyster: Oyster terms of service (EOR deposit) (checked Oct 16, 2026)
- ey.com/es_ce/technical/tax/tax-alerts/costa-rica-aumento-en-cuotas-... (checked October 16, 2026)
- blog.alegra.com/costa-rica/cargas-sociales-ccss-2026-patronos-costa... (checked October 16, 2026)
- aglegal.com/salario-minimo-costa-rica (checked October 16, 2026)
- escuelajudicialpj.poder-judicial.go.cr/Archivos/bibliotecaVirtual/o... (checked October 16, 2026)
This page is general information, not tax, legal or accounting advice. Rules and rates change, so check the official source linked above before you file or sign a contract. Read our disclaimer.