Employer of Record in Costa Rica
Onboard, pay and manage employees in Costa Rica without opening a local entity. We assume the legal risks and keep you 100% compliant with local labor law — you keep full operational control.
What is an EOR in Costa Rica?
An Employer of Record is a third party that legally employs your workers in Costa Rica on your behalf. Europortage becomes the legal employer — handling contracts, mandatory benefits, tax withholdings and terminations — while you direct your team's day-to-day work.
- Locally compliant employment contracts, drafted and signed in Costa Rica
- Mandatory benefits and social contributions administered
- Payroll, taxes and filings handled by local experts
- Compliant terminations and severance managed end-to-end
When to use an EOR in Costa Rica
Hire without the cost and delay of opening a company in Costa Rica.
Onboard your candidates in days, not months.
Labor law in Costa Rica is complex — we carry the risk for you.
Build a local team before committing to a legal structure.
What an employee really costs in Costa Rica
Total employer cost is around 27% on top of gross salary — Costa Rica's strong welfare state in one number.
| Employer contribution | Rate |
|---|---|
| CCSS — social security | 26.67% |
| Workman compensation | ~1% |
| Mandatory benefit | Amount |
|---|---|
| Aguinaldo (13th salary) | 1 month salary (Dec) |
| Minimum wage | ~₡346,000 / month (unskilled) |
| Social coverage | Health, pension, maternity via CCSS |
Salary, contributions and our fee consolidated. Ask us for an exact estimate for your role.
Everything you need to know before hiring
A practical guide to labor law in Costa Rica — maintained by our local experts.
Payroll, wages and taxes
Payroll is bi-weekly (15th and last day) or monthly, paid by direct deposit to a local account. Employees contribute ~10.5% to social security plus progressive income tax of 10–15% withheld at source.
Handled by Europortage
Every calculation follows current law and official rates — monitored continuously by our local team, so your payroll is always right.
Working hours and overtime
Standard work week of 48 hours over six days, with regulated day/night shift limits and overtime premiums.
Handled by Europortage
Working-time rules, overtime premiums and time-tracking obligations are applied automatically in every payroll cycle.
Mandatory and common benefits
Mandatory: Aguinaldo (a full extra month paid in December) and complete CCSS coverage — health insurance, disability, maternity and pensions. Private health and meal benefits are common voluntary extras.
Handled by Europortage
We administer every mandatory benefit and help you build a competitive package for the local market.
Vacation, holidays and leave
Two weeks of paid vacation per 50 weeks worked, national public holidays, and CCSS-backed sick and maternity leave.
Handled by Europortage
Leave balances, public holidays and statutory licenses are tracked for you — nothing slips through.
Notice and severance
Terminations follow the Labor Code with notice (preaviso) and severance (cesantía) by length of service, plus payout of accrued Aguinaldo and vacation.
Handled by Europortage
Terminations are the riskiest moment in LATAM employment. Our legal team runs the entire process cleanly for both sides.
This guide is provided for context only. When hiring through Europortage's EOR service, all payroll, taxes, contributions, contracts and compliance are handled directly by our team.
EOR vs. entity setup vs. contractors
Employer of Record
Hire fast and stay 100% compliant, without opening a company.
- Fast onboarding through our local structure
- Very low risk — compliance carried by Europortage
- Payroll, benefits and taxes included
- Best for hiring fast and testing the market
Entity setup
Your own company in Costa Rica, with full control and full responsibility.
- Slow to start — registration, banking, tax setup
- Medium risk — compliance carried by you
- Best for large permanent operations
Independent contractor
Fast to start, but risky if the relationship looks like employment.
- Quick to engage
- High risk — misclassification penalties
- Best for short, truly independent projects
Hiring in Costa Rica, answered
What are my options to hire workers in Costa Rica?
Three routes: hiring contractors (fast but with reclassification risk), opening a local entity (months of setup and ongoing costs), or using an EOR like Europortage — the fastest compliant option.
How much does it cost to employ someone in Costa Rica?
Plan for roughly 27% in employer contributions on top of gross salary, plus the Aguinaldo and vacation accruals.
What does "Employer of Record" mean in Costa Rica?
Europortage (or our vetted local partner) becomes the legal employer of your talent in Costa Rica: contracts, payroll, contributions and filings run under our responsibility, while you manage the day-to-day work.
Do employees get all their rights under an EOR?
Yes — employees hired through Europortage receive the complete set of statutory rights in Costa Rica: registered contract, mandatory bonuses, paid vacation, social security coverage and severance protections.