Your Employees
Benefits
An Employees benefits amount to approximately 55% of their hourly monthly wage.An approximate percentage of benefits you are required to pay, based annually:
Social Security - 22.00% (plus an additional 9% to be deducted from employee's wages)Savings and Pension Fund - 3.00% Workman's Compensation insurance - 2.00% Christmas bonus - 8.33% Vacation pay - 4.61% Paid holidays - 1.92% Termination pay - 13.8% Social Security (Caja Costarricense del Seguro Social CCSS or simply Caja):
33.5% Of the employee's regular (monthly) wage. The employer must pay 25% of the total salary amount, and an additional 9%, which is deducted from the employee. This covers the employee for medical care, hospitalization, other medical costs and 3% of this amount is a contribution to a savings and pension fund (Fondos de Capitalización & Pensiones)
The Social Security office is in Nicoya. To submit the paperwork for your employee's benefits you will need a copy of your passport or cédula juridica (if you are employing as a corporation); and your employee's full name and cedula number. Afterwards, Caja personnel will deliver the monthly payment invoice and your employee's medical and disability insurance coverage slips (for the following month) during the first half of the month. The payment is commonly due on the 20th of the month and can be paid at the Caja office or via the Internet.
Workers' Compensation Insurance (Riesgos de Trabajo)
Personal injury insurance similar to workers’ compensation must be carried to cover all employees. This policy must be purchased from the INS, the Costa Rican government owned insurance institute. It is approximately 2% - 3% of wages depending on the type of work.
You may purchase this insurance at the Seguros Peninsula office in Nicoya. You need a copy of the cédulas of your employees and a copy of your passport or company cédula. A monthly report needs to be either submitted via Internet or sent to Nicoya.
Christmas Bonus (Aguinaldo)
Employers are required to pay all employees 1/12 of their annual salary (an extra month's wages) in December.
Vacations (Vacaciones)
The law requires one day of paid vacation for every month of employment. A two-week vacation is due after fifty weeks of work. The employer can choose the time the vacations are taken and can require that half be taken at two different times. Vacations cannot include weekends or paid holidays, they must be regular working days.
Paid Holidays (Dias Feriados)
January 1 - New Year's day
Thursday & Friday proceeding Easter
April 11 - Juan Santamaria Day (moved to following Monday if it falls on a mid-week weekday)
May 1 - Labor Day
July 25 - Guanacaste Day (moved to following Monday if it falls on a mid-week weekday)
August 15 - Mother's Day
September 15 - Independence Day
December 25 - Christmas Day
Other holidays for which pay is not required for hourly employees are August 2 (Virgen of Los Angeles Day) and October 12 (Culture Day - moved to following Monday if it falls on a mid-week weekday).
Salaried employees are paid for these days whether they work on them or not.
If an employee works on a holiday or Sunday they are paid double.
Termination (Cesantia)
There is an automatic hiring trial period of three months during which an employee can be released without the payment of notice and termination pay. After three months full separation settlement applies. The trial period for domestic help is one month.
If an employee is dismissed (fired) without cause aguinaldo, vacation pay, notice and termination pay must be paid to them.
Preaviso (Advance Notice) The law requires 30 days advance notice to be given of impending termination. If no advance notice is given 30 days pay is due to the employee. If the required number of days of advance notice is given regular pay continues for 30 days, but the employee has the right of one paid day per week to look for another job.
Cesantia is severance pay. Maximum cesantia is 8 months.
When an employee quits or is fired with cause, preaviso and cesantia do not need to be paid; however aguinaldo and vacation pay must still be paid.
Income Tax
In addition to the above if any employee is paid over 445,000 colones per month
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Email the NCA: NosaraCivicAssociation@yahoo.com
Phone: (506) 2682-0008
Bocas de Nosara, Peninsula de Nicoya, Guanacaste, Costa Rica
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Minimum Wage
Costa Rica has a minimum wage scale revised and published every six months by the Ministerio de Trabajo. Nearly every conceivable occupation is covered on the list. If you are an employer, do not think you can pay less than what is the current minimum wage for that position. You will get caught and the fines and penalties are nasty. Remember also that one additional month is paid each December and that extra month is paid at the minimum wage or current wage if higher. It is NOT used to average out to the minimum wage. See Aguinaldo below.
