Leave Policies in Costa Rica

Mandatory Leave Policies in Costa Rica

The annual leave entitlement in Costa Rica is 14 days for a full-time worker who has completed 50 consecutive weeks of employment. These 14 days are in addition to public holidays, which are separate paid days off.

Public Holidays in Costa Rica

The employees in Costa Rica obtain 9 public holidays per year. Costa Rica has the following national holidays:

Types of Leave in Costa Rica

Sick Leave

Employees are entitled to sick leave with compensation. Employees receive full pay for the first 3 days of sick leave, with the employer covering 50% and Social Security paying the remaining 50%. From the fourth day onward, Social Security covers 60% of the daily wage, and the employer is not required to contribute, however can top this payment up at their discretion. A medical certificate is required within 48 hours for Social Security payment eligibility.

Paid Time Off

After completing 50 consecutive weeks of employment, employees are entitled to 14 days of paid annual leave. This leave is in addition to the mandatory public holidays. Employers and employees should mutually agree upon the timing of the vacation, considering both the company's operational needs and the employee's preference. Unused vacation leave can be accumulated for up to two consecutive years if agreed upon by both parties.

Maternity, Paternity, and Parental Leave

Female employees are entitled to four months of paid maternity leave, typically divided into one month before and three months after childbirth. The payment is shared equally between the employer and the Costa Rican Social Security Fund (CCSS). After returning to work, the employee is entitled to breastfeeding breaks of 1 hour per day subject to a certificate provided by social security.

Biological fathers are entitled to eight days of paternity leave, taken as two days per week during the first four weeks following the birth of their child. This leave is fully paid, with the employer and the CCSS each covering 50% of the salary.

Family and Emergency Leave

In the event of the death of a close family member, such as a spouse, parent, child, sibling, or grandparent, employees are entitled to at least three days of paid bereavement leave. This allows employees time to grieve and manage related affairs.

Special Leave Types

Employees who are primary caregivers for terminally ill individuals can request special leave. To qualify, employees must present a request to the attending physician at a CCSS medical center. During this period, the social security system provides a subsidy to the employee. Employers are required to respect this leave and reinstate the employee to the same role, terms, and conditions upon their return.

Best Practices for Implementing Leave Policies in Costa Rica

• Clear Communication: Clearly outline leave policies in employee handbooks and ensure all staff are aware of their entitlements.
• Compliance with Legal Requirements: Stay updated with Costa Rica's labor laws to ensure all leave policies meet or exceed legal standards.
• Record-Keeping: Maintain accurate records of leave accruals and usage to manage entitlements effectively.
• Flexibility and Fairness: When possible, accommodate employees' requests for leave timing, promoting a supportive work environment.

Providing Leave Benefits in Costa Rica With an EOR

A competitive compensation package is critical to attract and retain the best talent, but every country different regulations, customs and expectations. That’s the advantage of using a trusted Employer of Record like Playroll to manage benefits for your global team. They can:

• ‍Handle the benefits admin: Playroll ensures compliant contracts with built-in statutory checks. Add region-specific premium benefits, while we handle administration and employee claims. Manage leave, expenses, and more – all in one easy dashboard.
• ‍Run global payroll: An EOR will act as your payroll provider, paying your employees on your behalf in the local currency. The company will also have in-depth knowledge of local tax codes, regulatory practices, and everything else that goes into managing global payroll.
• ‍Alleviate compliance concerns: Different countries each have their own federal and local laws governing employee payments. An EOR helps ensure that you are compliant with the unique set of laws for any country in which your company operates. This is extremely important since a compliance slip-up can result in heavy fines or even a lawsuit.