Littler Global Guide - Costa Rica - Q1 2023

Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

View all Q1 2023 Global Guide Quarterly updates   Download full Q1 2023 Global Guide Quarterly

Bylaw to Law for Public Employment Framework Law

New Legislation Enacted

Author: Marco Arias, Partner – BDS, Member of Littler Global

The bylaw to the Public Employment Framework Law was published on March 10, 2023, in the official newspaper La Gaceta No. 45 and became effective as of its publication. With the Public Employment Framework Law and its regulations now in force, the institutions and companies subject to its scope of application have a new regulatory framework that will have important effects on labor relations, affecting issues such as hiring policies and practices, remuneration, division of jobs in families, vacations and dismissal, among others.

New Tax Adjustments for 2023, Based on Income Thresholds

New Order or Decree

Author: Marco Arias, Partner – BDS, Member of Littler Global

The Ministry of Treasury updated the income tax thresholds for salaried, retired and pensioned persons, as well as independent employees and companies (legal persons), through Executive Decree No. 43852-H, published in Scope 282 of the official newspaper La Gaceta No. 245. For 2023, the adjustment amount is 8.99%, effective January 1, 2023.

The tax adjustment based on income thresholds is as follows:

  • Income of up to CRC 941,000.00 per month: No taxation.
  • Income between CRC 941,000.01 and CRC 1,381,000.00 per month: 10%.
  • Income between CRC 1,381,000.01 and CRC 2,423,000.00 per month: 15%.
  • Income between CRC 2,423,000.01 and CRC 4,845,000.00 per month: 20%.
  • Income exceeding CRC 4,845,000.00 per month: 25%.

Increase to Minimum Wage for Private Sector

New Order or Decree

Author: Marco Arias, Partner – BDS, Member of Littler Global

Decree No. 43849-MTSS updates minimum wage requirements for 2023. The National Wage Council, in ordinary session No. 5727 of October 24, 2022, agreed to increase the minimum wage for all salary categories by 6.62%, effective January 1, 2023.

Once the 6.62% has been applied, the following additional increases will also be applied to the minimum wages: Monthly Domestic Service 2.33962%, Semi-Skilled Worker Monthly 0.3986390%, Skilled Worker per Day 0.3955514% and Specialized Worker Monthly 0.5562880%. This regulation does not modify the salaries that, by virtue of individual contracts, collective agreements or specific laws, are higher than those indicated in this decree.

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.