Insights
Payroll in Costa Rica: CCSS, Salary Tax and the Aguinaldo
Insights · By Chen ChunJie · Published 8 November 2026
Costa Rican payroll combines high social charges with a simple salary tax. This guide sets out the 2026 CCSS rates, the monthly salary tax bands, the aguinaldo and a worked example.
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.
CCSS contributions in 2026
| Item | Rate |
|---|---|
| Employer | 26.83% of gross pay, no ceiling |
| Employee | 10.83% of gross pay, no ceiling |
| Pension (IVM) share | 5.58% employer and 4.33% employee from January 2026, with a further rise due in 2029 |
Salary tax bands for 2026
| Monthly salary (CRC) | Rate |
|---|---|
| Up to 918,000 | 0% |
| 918,000 to 1,347,000 | 10% |
| 1,347,000 to 2,364,000 | 15% |
| 2,364,000 to 4,727,000 | 20% |
| Above 4,727,000 | 25% |
Small tax credits apply per child and for a spouse. The tax is calculated on gross salary.
Have a Costa Rican company and want payroll run every month? See Payroll Outsourcing in Costa Rica.
Worked example: CRC 1,500,000 a month
| Line | CRC |
|---|---|
| Gross salary | 1,500,000 |
| Employee CCSS (10.83%) | 162,450 |
| Salary tax | 65,850 |
| Net pay | 1,271,700 |
| Employer CCSS (26.83%) | 402,450 |
| Aguinaldo accrual | 125,000 |
This assumes no tax credits. Try other salaries in our Costa Rica salary calculator.
The aguinaldo
The aguinaldo is one-twelfth of all ordinary and overtime pay earned from 1 December to 30 November, paid by 20 December. No CCSS or tax is deducted, and leavers receive it pro rata.
Monthly reporting
The employer reports payroll to the CCSS and the INS every month and files and pays the salary tax withheld. Records should be kept for inspection by the CCSS and the MTSS.
FAQ: payroll in Costa Rica
What are the CCSS rates in 2026?
26.83% for the employer and 10.83% for the employee.
Is the aguinaldo taxed?
No, and no CCSS is deducted from it.
What is the tax-free salary in 2026?
The first CRC 918,000 a month.
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.