EOR Service in Costa Rica

Hire, Onboard and Pay Employees in Costa Rica Quickly and Efficiently

Hiring in Costa Rica at a glance

CURRENCY
Costa Rican Colón (CRC)
working hours
48 hours per week.
public/bank holidays
10
capital
San José
language
Spanish
date format
DD/MM/YYYY
remote workers
1.2M
tax year
Calendar year (January to December)
minimum hourly salary
No minimum wage
CURRENCY
Costa Rican Colón (CRC)
working hours
48 hours per week.
public/bank holidays
10
capital
San José
language
Spanish
date format
DD/MM/YYYY
tax year
Calendar year (January to December)
payroll frequency
Monthly
GDP

Employer of Record in Costa Rica

Costa Rica possesses a skilled workforce across various sectors, including technology, tourism, customer service, and remote work. By utilizing an Employer of Record (EOR) in Costa Rica, foreign employers gain access to this talent pool.

An EOR in Costa Rica acts as the official employer for these professionals, handling payroll, benefits, taxes, and administrative tasks. This setup eliminates the need for foreign employers to establish a legal entity in Costa Rica, making HR operations for foreign employers hiring in Costa Rica simpler and saving time and resources.

Why use Costa Rica EOR?

Opting for a Costa Rica EOR/PEO is advantageous owing to two reasons: 1) Cost of setting up an entity 2) Intricate labor laws in the country. 

Costa Rica’s labor laws have a few unique features that employers from many countries may not be familiar with. One such example is the 13th month pay , where the employer pays one month’s worth pay at the end of the year. Moreover, with the impact of collective bargaining agreements (CBAs) taken into account, partnering with a Costa Rica EOR is a strategic choice. 

A Costa Rica EOR would be well-versed in CBAs, ensuring adherence and reducing legal liabilities for employers. Moreover, with an EOR, you can also avoid setting up an entity to hire and pay local talent which can cost you anywhere between $9000 to $19000 depending on the entity you want to set up. Partnering with an EOR helps you expand and employ faster in the country at lesser costs.

EOR Costs in Costa Rica

The cost of Costa Rica EOR/PEO services can vary based on factors like workforce size, required services, and project complexity. The pricing structure usually involves a fixed monthly fee per employee or a percentage of their salary. Additional charges may apply for extra services or customization.

At Gloroots, we offer a fixed fee for our EOR solution. You incur no additional costs. This helps you plan your salary budgets properly when you hire from Costa Rica.

Key Metrics For Foreign Employer

Factors Global Ranking Interpretation
Rule of law

Labour-employer cooperation

Reading Maths, and Science

University Ranking

Labour productivity per employee

Ease of finding skilled employees

Workforce with tertiary education

Digital Skills
41

17

58

62

56

10

73

-
Indicates effectiveness of law enforcement

Indicates positive labor-employee relationships

Indicates average scores in OECD's survey of 15-year old students

Indicates average QS rankings

Indicates total output by the total labor input used to produce that output

Indicates findability of skilled talent

Indicates % of workforce with PG degrees

Indicates prevalence of advanced digital skills in the population

Source: The Global Talent Competitiveness Index 2022

Through the Gloroots’ Recrew platform, you can discover amazing talent in Argentina.

Why work in Costa Rica?

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Grow your team in Costa Rica

Expanding your team means strategically hiring the right people for the right positions.The complex employment regulations in the country highlight the difficulty of following labor laws.

Gloroots provides a comprehensive global Employer of Record (EoR) service, allowing you to delegate payroll, taxes, benefits, and compliance complexities to Gloroots. This frees you to concentrate on what truly counts: supporting your employees and driving your company's expansion.

Risks of misclassification

"Employee misclassification" refers to improper classification of a worker by employers. This occurs when an employer improperly classifies a worker as an independent contractor or exempts them from certain employment rules and perks, even if the worker is rightfully eligible for benefits, proper work hours, and other employee rights, 

Engaging a PEO/EOR in Costa Rica removes risks tied to employee misclassification and ensures labor law compliance, accurate worker classification, precise payroll handling, and access to full benefits. This empowers companies to focus on core functions while entrusting skilled experts with employment-related responsibilities.

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Avoid hefty penalties with Gloroots.

Use our free employee misclassification risk calculator to estimate your risk level.

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Employing in Costa Rica

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Tax

Income tax

Income range (CRC) Rate
0 - 941,000 0.00%
941,001 - 1,381,000 10.00%
1,381,001 - 2,423,000 15.00%
2,423,001 - 4,845,000 20.00%
4,845,001 and above 25.00%

Other Taxes and Social Security contribution

Employer Payroll Contributions

Income range (CRC) Rate
0 - 941,000 0.00%
941,001 - 1,381,000 10.00%
1,381,001 - 2,423,000 15.00%
2,423,001 - 4,845,000 20.00%
4,845,001 and above 25.00%

Employee Payroll Contributions

Contribution Rate
Medical & Maternity 5.50%
Disability, Old Age & Death Benefits 4.17%
Workmen's Savings Banks 1.00%
Total Employee Cost 10.67%

Separation

Termination Process

The process of ending employment differs depending on the employment agreement or collective arrangement in effect, and it is influenced by the contract type and the reason for termination.

For individual employment contracts, termination can occur through:

1. Legal provisions

2. Agreement between both parties

3. Either party acts in accordance with the terms and conditions specified by law.

Employers have the authority to terminate employment contracts due to reasons linked to the employee (such as insufficient job performance or disciplinary actions) or reasons unrelated to the employee (like job elimination).

In cases where the employer requests a termination letter, they are obliged to provide one, regardless of the reason for the termination.

Notice Period

Contribution Rate
Medical & Maternity 5.50%
Disability, Old Age & Death Benefits 4.17%
Workmen's Savings Banks 1.00%
Total Employee Cost 10.67%

Severance Pay

In Costa Rica, the amount of severance pay an employee receives is determined by their length of service, as indicated below:

3 to 6 months: 7 days

6 months to 1 year: 14 days

1 year: 19.5 days

2 years: 20 days

3 years: 20.5 days

4 years: 21 days

5 years: 21.24 days

6 years: 21.5 days

7 – 9 years: 22 days

10 years: 21.5 days

11 years: 21 days

12 years: 20.5 days

13 years and beyond 20 days

Probation Periods

The length of the probationary period in Costa Rica relies on the specific job role and is specified in the employment contract. Generally, however, probation periods typically span three months.

Start Hiring in Costa Rica today

When hiring globally, ensuring compliance comes with its own set of battles. Employers must ensure all hiring and onboarding activities adhere to employment laws, payroll procedures, DE&I compliance, GDPR and similar data protection, etc. If you think it is hard to set up local entities and start hiring, keeping up with a dynamic compliance landscape is far harder. 

Gloroots helps you minimize all these efforts by providing a single window to manage all these tasks. Our in-house experts fully shield you from cross-border employment and payroll compliance risks. We do this by helping you with generating employment contracts, on-time payments, compliant benefits, while you focus only on screening talent. 

Our promise is a stress-free global employment experience for both you and your employee.

Contact our experts today to kickstart your global hiring campaign.

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Experience Seamless Hiring in Costa Rica?

Let us take care of all your employment needs. We guarantee easy onboarding & compliant workforce management in Costa Rica.

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