Population

Costa Rica has about 5.2 million inhabitants (as of 2023). The majority of the population is of European descent, but there are also minorities of African, indigenous, and Asian origins.

Capital

The capital of Costa Rica is San José, the largest city in the country and its political, cultural, and economic center. San José is located in the central highlands and is known for its cultural institutions, museums, and universities.

Economic Strength

Costa Rica has a diversified and stable economy. Key sectors include tourism, agriculture (especially the export of coffee, bananas, and pineapples), as well as services and technology. In recent years, the country has become a hub for international companies and IT services. Despite its small size, Costa Rica has a relatively strong economy compared to other countries in the region. The GDP is around 100 billion USD (2022), and the country enjoys a good reputation for ecological sustainability and education.

Culture

Costa Rica’s culture is heavily influenced by Spanish traditions due to its colonial history, but there are also influences from indigenous, African, and Caribbean cultures. The country is known for its friendly people (“Ticos”), its dedication to environmental protection, and the philosophy of “Pura Vida,” which emphasizes joy and tranquility. Traditional music styles like Cumbia, Salsa, and Reggaetón are popular, and festivals such as Independence Day on September 15 and Easter are significant cultural events.

Currency

The official currency of Costa Rica is the Costa Rican Colón (CRC). The exchange rate to the US dollar is approximately 1 USD = 540 CRC (as of 2023). The US dollar is widely accepted in tourist areas.

Health Insurance and Social Security System

Costa Rica has a universal healthcare system known as the “Caja Costarricense de Seguro Social” (CCSS). This system provides health insurance and social security benefits, such as pensions, unemployment benefits, and disability pensions, for all residents. Employers and employees are required to contribute to this system together. The public health system is considered one of the best in Latin America and is known for its solid primary care services.

Employer Costs

Employer costs include social security contributions that must be paid to the CCSS. These contributions cover health insurance, pension insurance, unemployment, and maternity protection. Employers contribute about 26% of the employee’s gross salary to social security, while employees contribute about 10% of their income.

Salary and Bonuses

Costa Rica has a statutory minimum wage that varies by industry and occupation. For example, the minimum wage for an unskilled worker is about 350 USD per month. An important feature of labor law is the 13th-month salary (called “Aguinaldo” in Spanish), which is paid as a bonus in December. It amounts to one-twelfth of the income earned during the year.

Payslip

Employers must issue a monthly payslip that lists all deductions for taxes and social security contributions, as well as any bonuses. Income tax is applied progressively, with lower income brackets paying less tax.

Public Holidays

Costa Rica has 13 public holidays, including New Year’s Day (January 1), Independence Day (September 15), Easter Monday, Labor Day (May 1), and Christmas (December 25). Employees are entitled to paid time off on these holidays, and those who work on these days often receive overtime pay.

Working Hours

The standard working hours in Costa Rica are usually 48 hours per week, spread over 6 workdays (8 hours per day). However, there are flexible working time models that can vary depending on the industry and agreements between employer and employee. Overtime is typically paid at 150% of the regular hourly rate.

Vacation

Employees are entitled to at least two weeks of paid vacation per year after 50 weeks of continuous employment. In many companies, vacation entitlements increase with longer service.

Sick Leave

In the event of illness, the CCSS system covers medical care costs and provides sick pay. Employees are entitled to continued salary payments during sickness, which is covered by social security. The employer is required to pay the full salary for the first three days of illness, after which a percentage is paid by the CCSS.

Termination/Severance

Costa Rican labor law protects employees from unjustified dismissal. In many cases, employees are entitled to severance pay upon termination, which is calculated based on the length of employment. For each week worked at the company, a portion is added to the severance amount. Notice periods vary but are usually between two weeks and one month, depending on the length of service. There are also severance payments for long-serving employees or in the case of redundancies.

This information provides a good overview of the legal, economic, and social framework in Costa Rica.