Costa Rica confirmed its new minimum wage increase for 2026, and every employer must prepare now. The Consejo Nacional de Salarios (CNS) approved a 1.63% general raise for all private-sector minimum wages. Moreover, it endorsed higher adjustments for specific job categories.
These updates start on January 1, 2026, and apply to every worker who earns the legal minimum wage. Because of that, employers must adjust payroll systems and review salary structures immediately.
Updated Minimum Wage Adjustment for 2026 in Costa Rica
Costa Rica introduced several increases for 2026:
General Increase: +1.63% for all private-sector minimum wages.
Domestic Workers: +3.96%
Specialized Occupations (Genérico): +2.18%
Technical Workers: +2.50%
Effective Date
January 1, 2026 — mandatory nationwide.
📌 Why This Update Matters
This wage change impacts:
Payroll budgets
Social security contributions
Mandatory benefits linked to salary
Overtime and holiday pay
Contract updates
Because Costa Rica enforces strict labor compliance, timely adjustments are essential. Employers who ignore the update risk fines and legal action.
How the 2026 Wage Increase Affects Employers
Companies must act quickly. Here is what every employer needs to do:
- Update Payroll Software:Insert the new minimum wage values. Adjust every calculation tied to salary thresholds.
- Review Contracts: Ensure each salary meets or exceeds the updated minimum. Correct outdated clauses too.
- Recalculate Benefits: Many benefits in Costa Rica depend on base salary. So, update severance, holiday pay, and bonuses accordingly.
- Communicate Internally: Inform employees about the new adjustments. Clear communication avoids confusion and builds trust.
- Stay Alert: Costa Rica often adjusts wage formulas. Monitoring upcoming changes helps employers remain compliant.
Streamline Your Expansion with EOR Services in LATAM
Expand across Latin America effortlessly with our Employer of Record (EOR) services. We handle compliance, payroll, and employee management, ensuring smooth operations while you focus on growing your business.
Related topics
Need Support?
Managing payroll updates requires precision. At Europortage, we simplify payroll processing, tax compliance, and workforce management in Costa Rica and Latin America. Our Employer of Record (EOR) services help businesses manage payroll updates, tax changes, and compliance with ease.
📩 Contact us today to ensure your payroll and compliance processes align with the new Costa Rica minimum wage for 2026.
Get expert help hiring in Latin America
Have questions? We’d love to talk to you.
With Europortage, you’ll get access to:
- Compliant employment for remote teams in Latin America
- Seamless onboarding, payroll, and benefits
- Real-time, localized support from a team of experts.