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Costa Rica has 26.33% employer CCSS, mandatory FCL severance fund (3%/month), aguinaldo (13th month by December 20), and is Central America's leading US nearshore tech hub. Rippling EOR handles CCSS, INS, Hacienda, and Labour Code compliance.
Costa Rica is Central America's most developed economy and the leading US nearshore technology and shared services destination in Latin America. San José metropolitan area hosts major multinational operations. EOR is popular for US tech companies accessing Costa Rica's bilingual, educated workforce. CCSS contributions at 26.33% employer are the key planning item, alongside the FCL severance fund.
Setting up a Costa Rican SA requires National Registry registration, CCSS registration, INS registration, and Hacienda employer registration. EOR is recommended for 1–10 employees or where FCL fund management, aguinaldo calculation, and occupational category minimum wage compliance are complexities. Costa Rica's active CCSS audit environment makes local compliance expertise critical.
CCSS employee: 10.67% on gross salary. Income tax: progressive 0–25% on monthly income; withheld by employer. Personal exemption reduces taxable base.
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CCSS employer: 26.33% on gross salary. INS work accident insurance: ~1–3% (risk category). FCL severance fund: 3% of monthly wages (remitted to employee's FCL account at CCSS). Total employer on-cost approximately 30–32% of gross.
Progressive 5-bracket on monthly income: 0% (up to CRC 941,000); 10% (941,001–1,381,000); 15% (1,381,001–2,423,000); 20% (2,423,001–4,845,000); 25% (above 4,845,000). Monthly withholding by employer; remitted to Ministerio de Hacienda.
Annual leave: 2 weeks per year (after 50 weeks of service). Sick leave: first 3 days employer-paid at 50%; CCSS pays from day 4 at 60%. Maternity: 4 months (1 pre + 3 post) via CCSS. Public holidays: 12 national holidays.
Cesantía: 19.5 days/year (max 8 years); FCL balance covers this. Notice: 1 week to 1 month by tenure. Unfair dismissal: immediate cesantía payment. Rippling EOR manages full termination process.
Non-Costa Rican nationals require work permits from DGME (General Directorate of Migration). Processing: 4–8 weeks. Rippling EOR supports permit applications through its Costa Rican entity.
Statutory: CCSS 26.33% employer, FCL 3%/month severance fund, 2 weeks annual leave, 4 months maternity via CCSS, aguinaldo (13th month by December 20). Market standard: private health supplementary, performance bonus. San José metro area is the primary market.
Rippling EOR Costa Rica operates through a local Costa Rican entity. Key Costa Rica-specific handling: CCSS monthly contributions (26.33%), FCL severance fund (3%/month), INS work accident insurance, aguinaldo calculation and payment, occupational category minimum wage compliance, and Hacienda income tax withholding.
Costa Rica's CCSS (Caja Costarricense de Seguro Social) covers health insurance, pension, maternity, and several social funds. Employer contribution: 26.33% on gross salary. Employee: 10.67%. Total: 37% of gross. CCSS contributions are due by the 15th of the following month. Rippling EOR manages CCSS registration, monthly contributions, and annual reconciliation.
The FCL (Fondo de Capitalización Laboral) is Costa Rica's mandatory severance fund. Employer contributes 3% of monthly wages to the employee's individual FCL account at CCSS monthly. On termination, the FCL balance transfers to the employee. This pre-funds the cesantía (severance) obligation. Rippling EOR remits FCL contributions monthly alongside CCSS.
The aguinaldo is Costa Rica's mandatory 13th month salary, paid in the first 20 days of December. It equals 1/12 of total wages earned in the preceding 12 months (December 1 to November 30). Pro-rated for partial years. CCSS and income tax exempt. Rippling EOR calculates and pays aguinaldo automatically.
Costa Rica is the leading nearshore technology and shared services destination for US companies in Latin America, hosting major operations from Intel, Amazon, HP, Accenture, IBM, P&G, and Western Union. The San José metro area has 50+ universities, a bilingual English/Spanish workforce, US time zone compatibility (CST/EST), and strong rule of law — consistently the preferred Central American EOR destination.
