Employment Cost Calculator for Costa Rica
Calculate your complete hiring costs for Costa Rica employees, including payroll taxes, social security contributions, employee benefits, and management fees. This salary calculator provides accurate employer cost estimates for informed hiring decisions.
Employer Tax Contributions
| Tax Type | Rate | Base |
|---|---|---|
| Social Security (CCSS) | 26.67% | Gross Salary |
| National Training Institute (INA) | 1.5% | Payroll (for companies with 5+ workers) |
| Joint Social Assistance Institute (IMAS) | 0.5% | Gross Salary |
| Labor Risk Insurance (INS) | Varies | Gross Salary |
Filing & Compliance
- Payroll taxes are paid monthly between the 26th and the 6th of the next month.
- Monthly withholding declarations for income tax must be filed and paid by the 15th of the month following the payroll period.
- New employees must be registered for payroll within 8 days of employment.
In Costa Rica, employers deduct taxes from employee salaries, including income tax and social security contributions.
Income Tax
As of January 1, 2025, the income tax brackets for salaried employees, pensioners, and those receiving retirement payments are as follows:
- 0% for monthly income up to CRC 922,000.00
- 10% for monthly income between CRC 922,000.01 and CRC 1,352,000.00
- 15% for monthly income between CRC 1,352,000.01 and CRC 2,373,000.00
- 20% for monthly income between CRC 2,373,000.01 and CRC 4,745,000.00
- 25% for monthly income exceeding CRC 4,745,000.00
Tax credits are available for dependents: CRC 1,720 per child and CRC 2,600 per spouse. These are subtracted directly from the tax due. For example, an employee earning CRC 1,500,000 monthly falls into the 15% bracket, and if they have one child and a spouse, their tax credits total CRC 4,320.
Social Security Contributions
Employees contribute 10.67% of their total remuneration to social security. This is deducted directly from their payroll. This percentage is set to gradually increase to 12.16% by 2029. The contribution is distributed as follows (until December 31, 2025):
- Employers: 5.42%
- Employees: 4.17%
- State: 1.57%
Other Taxes and Deductions
While no other deductions are granted for employment income specifically, those with income from sources other than employment may have additional considerations. For example, self-employed individuals can deduct up to 25% of their gross income or itemize expenses.
Additional Employer Obligations
Employers are responsible for withholding income tax and social security contributions and remitting them to the tax authorities. They also contribute 26.33% of the employee's gross wages for social security. Other employer obligations include the mandatory 13th-month salary (aguinaldo), paid by December 20th each year. Employers also handle the filing of employee taxes and ensure compliance with employment laws and regulations.
Please note that this information is current as of February 5, 2025, and may be subject to change.
