How to hire employees in Costa Rica through an employer of record

Costa Rica's employment rules, from pay floors to cesantia

Charges went up on January 1, 2026

The employer's pension (IVM) contribution rose from 5.42% to 5.58% under the CCSS's scheduled IVM increases, lifting the employer total from 26.67% to 26.83%. The worker's share rose from 10.67% to 10.83%. A quote that still uses 26.67% is built on the 2025 rate.

Work-risk insurance is a separate bill

On top of the 26.83%, the employer carries an INS riesgos del trabajo policy priced by activity. Ask the EOR what it pays for your hire's job.

Minimum wage by occupation

Decreto 45303-MTSS (La Gaceta, December 5, 2025), as reported by the law firm AG Legal, raised minimum wages 1.63% from January 1, 2026. Monthly examples: CRC 373,092.30 for unskilled generic work, CRC 419,755.80 for skilled generic work, CRC 664,078.07 for a university bachiller and CRC 796,921.00 for a licenciado.

Notice and cesantia

The Poder Judicial's guide to preaviso and cesantia sets the rules for dismissal without cause:

• Trial period: the first 3 months. No notice and no cesantia are owed.
• Notice: 1 week after 3 to 6 months of service, 15 days after 6 to 12 months, 1 month after a year, or pay in lieu.
• Cesantia: 7 days' pay after 3 to 6 months and 14 days after 6 to 12 months. From one year, it is counted in days per year of service, starting at 19.5, peaking at 22 and settling at 20 from year 13, and only the last 8 years count.

Employment costs and rules in Costa Rica

What an EOR charges to employ someone in Costa Rica

One Costa Rican employee on CRC 20.2 million a year

Our sample salary is CRC 20,200,000 a year (CRC 1,683,333 a month). That is about USD 40,000 at an assumed 505 colones per dollar; we did not fetch an official rate, so the EOR fee stays in dollars.

Alegra's line items add to 25.83%, CRC 5,217,660, while EY confirms the 26.83% total. The missing point is most likely the 1% INS contribution under the Worker Protection Law, which we have not confirmed line by line. 26.83% x 20,200,000 = CRC 5,419,660. The year-end aguinaldo is commonly described as one twelfth of a year's pay (CRC 1,683,333 here), which would lift the cost to 35.16%. We have not confirmed that rule from an official source, so 26.83% is the confirmed share and the aguinaldo is shown apart.

The EOR fee then adds $7,188 a year at $599, $4,788 at $399 (Pebl, Playroll), $8,388 at $699 (Oyster) or $2,388 at the $199 entry price of Payoneer Workforce Management. A secondary source says non-farm employers with fewer than 5 permanent staff do not owe INA; under an EOR, ask the provider whose headcount it applies, since it is the legal employer. Try other salaries in the international cost calculator.

Deposits and exit costs for a Costa Rican hire

Cesantia turns termination into a budget item, and it can raise deposits. Multiplier sets its deposit from employment costs, fees and notice periods; Oyster's terms ask for at least one month of total service cost, credited about 60 days after the end date; Playroll takes one month's salary. Ask whether termination costs are passed through at cost. Oyster and Playroll list no termination fee; Multiplier needs 30 days to process one.

Picking an EOR for Costa Rica

Our scores rank Multiplier at 79/100 and Oyster at 64/100, ahead of Remote (62), Playroll (60), Pebl (57) and Deel (54), as explained in how we score. No provider publishes a Costa Rica-only fee. Ask for the INS work-risk rate and whether the quote already uses the 2026 IVM rate. Compare the top EOR providers, Deel, Remote and Oyster.

Costa Rican contractors (servicios profesionales)

Paying a Costa Rican professional on invoices avoids the 26.83% charges. If the work is full-time and directed by you, it can be treated as employment, with back CCSS charges plus notice and cesantia on termination. Compare contractor payment platforms or a contractor of record.

Opening a Costa Rican company instead

A local company means CCSS and INS registration and a payroll provider, set against $7,188 a year per EOR hire at $599. See EOR versus your own entity and the EOR fee comparison.