Employment rights in Costa Rica explained clearly

Employment rights do not depend solely on having a written contract. When a person provides services personally, receives pay and works under direction or subordination, an employment relationship may exist even if the agreement was verbal or given another name.

This guide summarizes general private-sector rules. Collective agreements, public employment, domestic work, employment of minors, regulated professions and special regimes may add different conditions.

Contract and records

A written contract helps prove the role, pay, working hours, location, work arrangement, benefits and start date. Read clauses on availability, confidentiality, intellectual property, remote work, bonuses and termination particularly carefully.

Keep:

• the contract and amendments;
• proof of payment and CCSS records;
• schedules, time records and overtime approvals;
• vacation and medical-leave requests;
• communications about changes to duties or pay.

Do not sign blank spaces or a settlement that fails to itemize payment. A private document does not necessarily waive statutory minimum rights.

Minimum pay and how it is reported

The employer must meet the current minimum based on actual duties, occupational classification or the qualification required. A polished job title does not allow the employer to use a lower category. The 2026 decree contains daily and monthly rates for the private sector.

Pay may include variable components, but MTSS guidance indicates that salary and commissions must together reach at least the applicable minimum. Ask for base pay, commissions, bonuses, overtime and availability pay to be itemized separately.

See Salaries by profession for the difference between a legal floor and a statistical average.

Ordinary working hours

Schedule	General ordinary limit
Day	8 hours a day and 48 a week
Night	6 hours a day and 36 a week
Mixed	7 hours a day and 42 a week

Classification depends on the hours actually worked. If a mixed schedule includes enough nighttime work, it may be treated as a night schedule. Legal exceptions exist for particular roles and cumulative schedules, but they should not be applied automatically to every trusted employee or remote worker.

Overtime

Overtime is generally paid at 50% above the ordinary hourly value. Ordinary plus overtime work normally may not exceed twelve hours a day, apart from legally exceptional circumstances. Overtime should be occasional rather than a permanent extension. Record its start, end and authorization.

Working on a holiday or weekly rest day can change the calculation.

Weekly rest and holidays

Every employee has a right to weekly rest under the law. Costa Rica distinguishes mandatory-paid and non-mandatory-paid holidays, and the financial result depends on the payment arrangement.

Mandatory-paid holidays in 2026 are January 1; April 2, 3 and 11; May 1; July 25; August 15; September 15; and December 25. August 2 and 31 and December 1 are non-mandatory-paid holidays.

Monthly and biweekly pay already includes calendar days. Working a mandatory-paid holiday generally requires an additional ordinary day’s pay to complete double pay. Weekly non-commercial arrangements require a different analysis; consult MTSS’s annual calendar.

Vacation

The general minimum is two paid weeks after 50 continuous weeks with the same employer. When employment ends earlier, the Code provides at least one day per month worked for settlement purposes.

Vacation does not simply mean fourteen working days: the actual number of days depends on the weekly schedule and how the leave is taken. There should be a record showing that vacation was granted. Cash compensation during employment is restricted because the primary purpose is rest.

Christmas bonus

For private employment, add ordinary and overtime wages paid from December 1 through November 30, then divide by twelve to estimate the Christmas bonus. Normally it is paid within the first twenty days of December. Check the bonus calculator against payslips.

Include applicable variable wage payments; do not automatically include travel allowances or reimbursements that are not wages.

CCSS and occupational risk

Employers must report employment and salary to CCSS and maintain occupational-risk coverage. Periodically verify that the salary reported matches the salary received, because a discrepancy can affect future benefits.

Medical incapacity is not vacation and follows separate payment rules. If an occupational accident occurs, report and document it as soon as possible and use the appropriate coverage.

Leave, maternity and protection from discrimination

The Labor Code and related laws contain protections involving pregnancy, breastfeeding, discrimination, harassment and other circumstances. An adverse decision based on a protected condition may be challengeable. Procedures and evidence vary, so seek advice early and preserve evidence.

Resignation, dismissal and final settlement

Not every end of employment produces the same payments.

Situation	Review
Resignation	unpaid salary, proportional bonus and leave; employee notice according to seniority
Dismissal without employee responsibility	outstanding and proportional amounts, notice and severance when applicable
Dismissal for cause	outstanding and proportional amounts; the cause must be assessed and supported
Fixed term	expiration, cause and contract conditions matter

MTSS summarizes notice for indefinite contracts as none before three months; one week from three to six months; fifteen days from six months to one year; and one month after a year.

Severance uses a statutory seniority table and has limits; do not calculate it simply as one month per year. Use the vacation and settlement tool as an estimate and verify disputed cases with MTSS or professional advice.

If something goes wrong

1. Record the event, date and amount.
2. Gather contracts, payslips, schedules and messages.
3. Request a written explanation where safe.
4. Do not alter information or obtain it unlawfully.
5. Consult MTSS about calculation, inspection or conciliation.
6. Seek prompt legal advice for dismissal, discrimination, harassment, injury or expiring deadlines.

Frequently asked questions

Does remote work eliminate overtime?

No. Hours, control, duties and authorization still matter, and remote work does not eliminate rest or minimum pay.

Can an employer automatically deduct shortages or damage?

Not every deduction is automatic. It needs a lawful basis and must respect wage protections. Request the calculation in writing.

Can an employer require me to work on a holiday?

The general rule protects taking the holiday, with exceptions for activities provided for by law. MTSS indicates that refusal cannot be sanctioned outside those exceptions.

When should a claim be raised?

As soon as possible. Legal time limits apply and evidence becomes harder to preserve.

Sources and cutoff

Updated July 26, 2026, using MTSS employment guidance, the current Labor Code at SCIJ, the 2026 holiday calendar and 2026 minimum wages.

This article is informational and does not replace legal advice for a specific case.