---
title: "Costa Rica Employer Cost Breakdown 2026 | CCSS, Aguinaldo"
description: "Costa Rica employer cost 2026. CCSS base of 14.17%, a mandatory 13th-month aguinaldo, and parafiscal funds on top, line by line."
canonical: https://www.teamed.global/country-hiring-guides/costa-rica/cost-breakdown
---

Costa Rica · Cost breakdown child

Served by Teamed vetted partner-entity network in Costa Rica

# How much does it really cost to *hire in Costa Rica* in 2026?

Your real Costa Rica cost is gross salary plus a mandatory 13th-month aguinaldo of 1 month pay, on top of an employer CCSS contribution that starts at 14.17% and rises further once the smaller parafiscal funds are added. The aguinaldo alone adds an eighth to every annual wage bill before a single social charge.

Last reviewed 13 June 2026 · Costa Rica guide

![The San Jose skyline at golden hour with red-tiled rooftops and the green Talamanca mountains rising behind the city under a warm sky.](/images/country-guides/costa-rica-cost-breakdown.webp)

Illustration · San Jose, Costa Rica

Answer.cite this

Hiring in Costa Rica costs more on top of gross salary than the social-charge rate alone suggests. The aguinaldo is why. Every employee gets a mandatory 13th-month salary of 1 month pay. You must pay it within the first 20 days of December (Ley 2412).

On top of that, the employer pays CCSS social security. The base CCSS rate is 14.17% of gross pay. Smaller parafiscal funds sit on top of the CCSS base, so the true employer charge runs higher than the headline rate. The employee pays a further 8.34% from their own wages.

Income tax is withheld by the employer, not paid by it. Monthly pay up to 0% tax sits in the exempt band, then rates climb to 25% on the highest earnings (Decreto 45333-H). Statutory paid leave is 2 weeks after 50 weeks of service. There is no statutory minimum wage figure for every role. Costa Rica sets minimums by job type.

## The headline, what a Costa Rica hire actually costs

Start with gross salary. Add the aguinaldo, a 13th-month payment worth 1 month salary, due in the first 20 days of December. Then add employer CCSS at 14.17% of gross, plus the smaller parafiscal funds that sit on top.

Income tax is withheld, not an employer cost. It only becomes a cost if you get the calculation wrong. The aguinaldo and the social charges are the two real add-ons to budget for.

Costa Rica's employer cost is driven by two things the headline social-security rate does not show. The first is the aguinaldo, a mandatory 13th-month salary that adds one twelfth to your annual wage bill. The second is the stack of small parafiscal funds (INA, IMAS, FODESAF, Banco Popular and others) that sit on top of the base CCSS contribution. The base CCSS employer rate is 14.17%, but the funds raise the true employer charge above that figure.

| Line | What it is | Source |
| --- | --- | --- |
| Gross salary | The agreed monthly wage, paid in colones | Contract |
| Aguinaldo (13th month) | 1 month salary, paid 1 to 20 December | [Ley No. 2412 (Ley del Aguinaldo)](https://docs.costa-rica.justia.com/nacionales/leyes/ley-2412.doc) |
| Employer CCSS, base rate | 14.17% of gross (health plus pension) | [CCSS, Seguros y contribuciones](https://www.ccss.sa.cr/seguros) |
| Parafiscal funds on top of CCSS | INA, IMAS, FODESAF, Banco Popular and others, charged on gross | [CCSS, Seguros y contribuciones](https://www.ccss.sa.cr/seguros) |
| Paid annual leave | 2 weeks after 50 weeks of service, built into salary | [Codigo de Trabajo, Art. 153](http://www.pgrweb.go.cr/scij/Busqueda/Normativa/Normas/nrm_texto_completo.aspx?param1=NRTC&nValor1=1&nValor2=8045) |
| Income tax (PAYE) | Withheld from the employee, not an employer cost | [Decreto Ejecutivo No. 45333-H](https://www.pwc.com/ia/es/publicaciones/Noticias-Tax-Legal/Tax-and-legal-2025/Actualizacion-de-los-Tramos-y-Creditos-del-Impuesto.pdf) |

The aguinaldo is the line most foreign employers miss. It is one twelfth of all ordinary and extraordinary pay earned between 1 December and 30 November, paid as a lump sum in early December. Budget it from month one. It is not a bonus you can choose to skip. It is a 1 month salary the law requires (Ley 2412).

Add Teamed from $599 per employee per month and the picture is complete. Use the [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost) to run your own salary figures against the current rates.

1. Start with gross salary Confirm the agreed monthly gross salary in colones. Check it against the right MTSS minimum-wage category for the role, since Costa Rica sets minimums by job type.
2. Accrue the aguinaldo Set aside one twelfth of pay every month for the December aguinaldo. It is a mandatory 13th-month salary, not an optional bonus, and it is the largest add-on to budget.
3. Add CCSS and the parafiscal funds Apply the employer CCSS rate to gross pay, then add the smaller parafiscal funds on top. Confirm the combined rate with the CCSS for the role and sector.
4. Withhold and remit income tax Calculate each employee's salary tax across the bands, apply any family credits, deduct it from pay, and remit it on time. This is the employee's cost, not yours.
5. Reserve for termination from day one Severance accrues from the first months of service and notice pay sits on top. Build fair-process documentation and a severance reserve into headcount planning from the start.

## CCSS and the parafiscal funds, the employer's social charges

The base employer CCSS contribution is 14.17% of gross salary. This covers health (SEM) and the pension fund (IVM).

Smaller parafiscal funds sit on top of the CCSS base, so the full employer charge runs higher than 14.17%. The employee pays a further 8.34% from their own wages.

### CCSS, the base contribution

The Caja Costarricense de Seguro Social (CCSS) runs Costa Rica's health and pension system. The employer's base CCSS contribution is 14.17% of each employee's gross pay. That splits into the health insurance fund (Seguro de Enfermedad y Maternidad) and the pension fund (Invalidez, Vejez y Muerte). The employee contributes 8.34% from their own salary, which the employer withholds and remits alongside its own share.

### The parafiscal funds on top

Costa Rica layers several smaller social funds on top of the CCSS base. These include the national training institute (INA), the social welfare fund (IMAS), the family allowance fund (FODESAF) and the workers' bank fund (Banco Popular), among others. Each is charged as a small percentage of gross pay. Together they push the true employer charge above the 14.17% base rate. Treat the full parafiscal stack as an unconfirmed add-on for budgeting, and confirm the exact combined rate with the CCSS for the role and sector before you sign.

CCSS Costa Rica · Seguros y contribuciones

Employer base CCSS contribution: **14.17%** of gross pay. This is the health fund (SEM) plus the pension fund (IVM). Employee CCSS contribution: **8.34%**, withheld from wages. Parafiscal funds sit on top of this base, so the full employer charge is higher.

Source: [Caja Costarricense de Seguro Social, Seguros y contribuciones](https://www.ccss.sa.cr/seguros)

### Sick pay, a shared cost

When a certified illness suspends the contract, the employer pays part of the wage and the CCSS pays a subsidy on top. With 3 to 6 months of service the employer pays half salary for one month (Codigo de Trabajo Art. 79). With over 9 months of service the employer pays half salary for up to three months. The CCSS illness subsidy that tops this up was reformed in November 2024 and is now calculated on the average of the employee's last 12 reported salaries. Confirm the current subsidy basis with the CCSS before you model a long absence.

## Aguinaldo and leave, the paid-time costs the law requires

The aguinaldo is a mandatory 13th-month salary of 1 month pay. You must pay it within the first 20 days of December (Ley 2412). There is no statutory 14th month.

Paid annual leave is 2 weeks after 50 weeks of continuous service. Leave accrues at one day per month for shorter service.

### Aguinaldo, the 13th-month salary

Every private-sector employer must pay an aguinaldo. It equals one twelfth of all ordinary and extraordinary pay the employee earned between 1 December and 30 November. In practice that works out as roughly one extra month of salary, so the law frames it as 1 month pay. It must reach the employee in the first 20 days of December (Ley 2412). There is no statutory 14th-month salary in Costa Rica. The aguinaldo is the single largest add-on to a Costa Rica wage bill and the one foreign employers most often forget to budget.

### Annual leave

The statutory minimum paid vacation is 2 weeks of consecutive leave after 50 weeks of continuous service (Codigo de Trabajo Art. 153). For shorter service, leave accrues at the rate of one day for each month worked. Unused accrued leave is paid out when employment ends. Budget annual leave as a cost already built into the salary rather than a separate line.

### Public holidays

Costa Rica recognises 9 days of mandatory paid public holidays each year (Codigo de Trabajo Art. 148). These are 1 January, 11 April, Holy Thursday, Good Friday, 1 May, 25 July, 15 August, 15 September and 25 December. A further 3 days are recognised as holidays where payment is not obligatory, on 2 August, 31 August and 1 December.

### Maternity and paternity leave

Statutory maternity leave is 4 months, taken as one month before the birth and three months after (Codigo de Trabajo Art. 95). It is paid at full salary, with the cost shared between the employer and the CCSS. Costa Rica also provides paid paternity leave on the birth of a child. The exact statutory duration is still to be confirmed against current law, so treat the paternity figure as unconfirmed when you model it.

## Income tax, what the employer withholds from every salary

Costa Rica uses a five-band monthly salary tax. The employer withholds it from each pay run and remits it. It is the employee's cost, not the employer's.

Pay in the lowest band is taxed at 0%. The top rate is 25% on the highest monthly earnings (Decreto 45333-H).

Salary income tax (impuesto sobre la renta del trabajo) is the employer's main monthly withholding job. Every pay run, the employer calculates the tax for each employee, deducts it from the salary, and remits it to the tax authority. It is the employee's tax, not an employer charge in cash terms. It becomes a cost only when the calculation is wrong or a deadline is missed.

### The 2026 Costa Rica salary tax bands

Five monthly bands apply for 2026 under Decreto Ejecutivo No. 45333-H. Each rate applies only to the slice of monthly pay that falls inside that band.

| Monthly salary band | Rate on that slice |
| --- | --- |
| Lowest band, the exempt slice | 0% |
| Second band | 10% |
| Third band | 15% |
| Fourth band | 20% |
| Highest band | 25% |

Source: [Decreto Ejecutivo No. 45333-H (art. 33 Ley 7092)](https://www.pwc.com/ia/es/publicaciones/Noticias-Tax-Legal/Tax-and-legal-2025/Actualizacion-de-los-Tramos-y-Creditos-del-Impuesto.pdf). Bands published in La Gaceta No. 229, 5 December 2025, effective 1 January 2026.

### Family tax credits

Employees can claim small monthly credits against their salary tax. The credit is CRC 1,710/month for each child and CRC 2,590/month for a spouse (Decreto 45333-H, art. 34 Ley 7092). The employer applies these credits in the withholding calculation. They reduce the employee's tax, not the employer's contribution.

## The costs that do not show on a monthly payslip

Three costs sit outside the monthly run. They are real and they arrive when you least expect them.

Minimum wage compliance, severance on dismissal, and the bill for an unjustified dismissal can each dwarf the routine social charges if you do not plan for them.

### Minimum wage, set by job type

Costa Rica does not publish one national minimum wage. The MTSS sets minimums by occupational category each year by decree. For 2026, the generic unskilled monthly minimum is CRC 373,092.30/month, and the generic skilled monthly minimum is CRC 419,755.80/month (Decreto 45303-MTSS). Other roles sit on different rates in the official MTSS list. Match the role to the right category before you set a salary, because the minimum for a specialist role can be well above the generic figure.

### Severance on dismissal

When you dismiss an employee without just cause, you owe both notice pay (preaviso) and severance (auxilio de cesantia). Severance starts at 7 days' salary for 3 to 6 months of service and 14 days' salary for 6 months to a year. Beyond one year it runs on a graduated scale of roughly 19.5 to 22 days' salary for each year worked (Codigo de Trabajo Art. 29). The total severance is capped at the last 8 years of the relationship. Budget a severance reserve from the first year, not as a year-five surprise.

### The cost of an unjustified dismissal

If a dismissal is challenged and you cannot prove just cause, the bill grows. You owe the notice pay and the severance, plus damages equal to the wages the employee would have earned from the end of the contract up to the final judgment (Codigo de Trabajo Art. 82). The just causes that allow a dismissal without this liability are listed in Art. 81. A poorly documented dismissal can run to multiples of the routine annual social charge. Good process from day one is the cheapest protection you can buy.

### Pay cycle and remittance discipline

Manual workers must be paid at least every two weeks (quincena) and salaried staff at least monthly (Codigo de Trabajo Art. 168). CCSS and parafiscal contributions are remitted monthly. The aguinaldo is due in the first 20 days of December. Getting the cadence and the December deadline right matters as much as the contribution rate for most Costa Rica payroll budgets.

## How Teamed handles Costa Rica employment costs for you

Teamed becomes your legal [employer of record](/lp/employer-of-record) in Costa Rica for [**from $599 per employee per month**](/pricing), with **zero FX mark-up** in any currency.

CCSS, the parafiscal funds, the aguinaldo, income-tax withholding, and the full Costa Rica compliance stack run on **one platform**.

**Real HR and legal experts** handle your Costa Rica hires from the first offer letter through every CCSS remittance and the December aguinaldo run. **An actual person**, not a chatbot or a pooled queue. There is **no setup fee** and **no exit fee**. Every employer cost **passes through at cost, itemised** on every invoice. You see the CCSS line, the parafiscal lines, and the aguinaldo accrual. Nothing is hidden inside the management fee.

EOR payroll, contractor onboarding, and entity setup all live on **one platform**. A Costa Rica contractor who converts to employment keeps their record. That same employee can **graduate** from EOR to your own Costa Rican entity without switching systems. EOR is the right structure for a first Costa Rica hire, **until it isn't**. Teamed does not trap you in it. Start from [the Costa Rica hiring overview](/country-hiring-guides/costa-rica) or run the [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost) to see the full picture.

## Frequently asked questions

What does it cost to hire an employee in Costa Rica in 2026?

Your real cost is gross salary, plus a mandatory 13th-month aguinaldo of 1 month pay, plus employer social charges. The base employer CCSS contribution is 14.17% of gross, and smaller parafiscal funds sit on top of that, so the true employer charge runs higher. Income tax is withheld from the employee, so it is not an employer cost in cash terms. Add Teamed from $599 per employee per month for the full employer-of-record service.

What is the aguinaldo and is it mandatory?

The aguinaldo is a mandatory 13th-month salary worth 1 month pay. It equals one twelfth of all pay earned between 1 December and 30 November. You must pay it within the first 20 days of December (Ley 2412). There is no statutory 14th-month salary. It is the single largest add-on to a Costa Rica wage bill and the cost foreign employers most often forget.

How much does the employer pay in CCSS social security?

The base employer CCSS contribution is 14.17% of gross pay, covering the health fund and the pension fund. The employee contributes a further 8.34% from their own wages. Several smaller parafiscal funds, including INA, IMAS, FODESAF and Banco Popular, are charged on top of the CCSS base, so the full employer charge is higher than 14.17%. Confirm the combined rate with the CCSS for the role and sector.

Is there a minimum wage in Costa Rica?

There is no single national minimum wage. The MTSS sets minimums by occupational category each year by decree. For 2026, the generic unskilled monthly minimum is CRC 373,092.30/month and the generic skilled monthly minimum is CRC 419,755.80/month (Decreto 45303-MTSS). Specialist roles sit on higher rates in the official MTSS list, so match the role to the correct category before setting pay.

How is income tax handled in a Costa Rica salary?

Income tax is withheld by the employer and remitted, so it is the employee's cost, not the employer's. For 2026 it runs across five monthly bands, from 0% on the lowest slice up to 25% on the highest (Decreto 45333-H). Employees can claim small monthly family credits of CRC 1,710/month per child and CRC 2,590/month for a spouse, which the employer applies in the withholding calculation.

How much paid leave must a Costa Rica employer give?

Statutory paid annual leave is 2 weeks of consecutive vacation after 50 weeks of continuous service, accruing at one day per month for shorter service (Codigo de Trabajo Art. 153). There are 9 days mandatory paid public holidays a year, with 3 days more where pay is not obligatory. Statutory maternity leave is 4 months at full pay, shared between the employer and the CCSS.

Teamed Legal Operations

The number foreign employers miss in Costa Rica is the aguinaldo. It is a mandatory 13th-month salary, so a hire really costs thirteen months of pay a year before any social charge. Add the CCSS base and the parafiscal funds on top, and the true employer cost is meaningfully higher than the headline rate. Model the aguinaldo from month one and the rest of the budget falls into place.

A note from Tom Price-Daniel

In Costa Rica the aguinaldo is the line that catches new employers out. It is a 13th-month salary the law requires, paid every December.  
Add CCSS from a base of 14.17% and the parafiscal funds on top, and the true cost sits above the headline rate.  
Budget the aguinaldo first. Know the social charges. Then set the salary.

Tom Price-Daniel · Co-founder, Teamed

## Related Costa Rica guides

- [Hiring in Costa Rica, overview](/country-hiring-guides/costa-rica)parent
- [Costa Rica tax and payroll](/country-hiring-guides/costa-rica/tax-and-payroll)sibling
- [Costa Rica termination and severance](/country-hiring-guides/costa-rica/termination-and-severance)sibling
- [Employer of Record overview](/lp/employer-of-record)core
- [Pricing, Zero FX Fixed](/pricing)core
- [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost)tool
- [Talk to an expert](https://www.teamed.global/contact)CTA

A note on this page.

This is a guide, not legal, tax or accounting advice. Rules change and vary by role and sector. Verify current requirements with the Ministerio de Trabajo y Seguridad Social (MTSS) and the Caja Costarricense de Seguro Social (CCSS) before relying on any specific figure. The full parafiscal employer burden on top of the base CCSS rate, the exact paternity-leave duration, and the current CCSS illness-subsidy basis were not independently confirmed in this guide and should be checked with the CCSS and MTSS before you model them. Costa Rica sets minimum wages by occupational category by MTSS decree; match the role to the correct 2026 category before setting pay.