Littler Global Guide - Costa Rica - Q3 2022

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 Q3 2022 Global Guide Quarterly updates   Download full Q3 2022 Global Guide Quarterly

Digital Nomads Regulation

New Legislation Enacted

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

Law 10,008, which was signed into law on July 4, 2022, will regulate the migratory status of digital nomads. The nonresident status (called fifth stay) will allow remote workers who have flexible working conditions to telework from Costa Rica, which will represent an economic and social benefit for the country.

Gradual Reduction to Minimum Tax Base for Social Security

New Legislation Enacted

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

On September 1, 2022, the Costa Rican Social Security Fund agreed to a gradual reduction of the minimum tax base for social security, by approving the amendment of article 63 of the Health Insurance Regulations and articles 2 and 34 of the Disability, Old Age and Death Insurance Regulations. Such amendments adjust the rules regarding the minimum base for the contributions of part-time workers and employees with salaries lower than a specific threshold. The amendments also provide for a gradual adjustment in the upcoming years, starting January 2023 and for same periods of 2024 and 2025.

Extraordinary Salary Increase for the Private Sector

New Order or Decree

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

By a majority of votes, the National Salary Council approved an extraordinary increase of 1.24% for all salary categories in the private sector. This increase applies to minimum wages effective July 1, 2022.

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.