Insights
How to Hire Employees in Costa Rica
Insights · By Chen ChunJie · Published 8 November 2026
Costa Rica is a popular nearshore base for companies in the Americas. A foreign company can hire there through its own Costa Rican company, through an employer of record, or by engaging independent contractors for defined projects. This guide covers the routes, contracts, pay, leave and how employment ends.
Last reviewed in November 2026 against the Labour Code, the 2026 minimum wage decree, CCSS rates for 2026 and Decree 45333-H. Rates change, so we confirm them for each engagement.
Three ways to hire in Costa Rica
| Route | Who employs the person | Best for |
|---|---|---|
| Your own Costa Rican company | Your sociedad or branch | Long-term teams and a permanent business |
| Employer of record | A Costa Rican employer such as our Local Team | First hires and nearshore roles before your entity is ready |
| Independent contractor | No employer; a services contract | Projects by a professional with their own clients and tools |
Contracts
Employment contracts are written in Spanish in three copies, with one filed with the MTSS within 15 days. They state the parties, duration, hours, pay and place of work. A fixed term is allowed only where the work justifies it, for up to one year, or five for specialised technical work. There is no formal probation, but notice and cesantía apply only after three months.
No Costa Rican company yet? Our Local Team can be the legal employer while you manage the work. See Employer of Record in Costa Rica.
Pay and payroll
Minimum wages are set by occupation each January; for 2026 they run from CRC 373,092.30 a month for unskilled work to CRC 796,921 for a university licentiate. The employer pays CCSS charges of 26.83%, withholds the employee’s 10.83% and salary tax, insures employees with the INS and pays the aguinaldo by 20 December. See our Costa Rica payroll and tax guide.
Working time and leave
| Rule | What applies |
|---|---|
| Hours | Day shift up to 8 hours a day and 48 a week |
| Overtime | 150% of the ordinary rate, up to 12 hours a day in total |
| Vacation | Two weeks for every 50 weeks of work |
| Public holidays | Nine paid holidays and three more paid only if worked |
| Maternity and paternity | Four months at full pay; eight days for fathers |
Ending employment
Either party can end an indefinite contract with notice of one week to one month, depending on service. A dismissal without just cause also triggers cesantía after three months. Just-cause dismissals, such as for serious misconduct, need no notice or cesantía, but the reason must be documented. Pregnant and breastfeeding employees have special protection.
Hiring a foreign national
Foreign employees need a migratory status with permission to work from the DGME before starting. See Expat Employment in Costa Rica.
FAQ: hiring employees in Costa Rica
Is a written contract required in Costa Rica?
Yes, in most cases, with a copy filed with the MTSS.
Is there a probation period?
No formal one, but notice and cesantía apply only after three months.
When is the aguinaldo paid?
By 20 December.
Can a foreign company hire without a local entity?
Through an employer of record, yes.
Hiring your first employee in Costa Rica?
Our Local Team employs the person, runs payroll with CCSS, salary tax and the aguinaldo, and handles the paperwork, while you manage the day-to-day work.
Related
How we employ your team in Costa Rica.
Contracts, leave, termination and more.