Leave policy in Costa Rica

Costa Rica has long been one of Latin America’s most worker-friendly countries. Its labor framework, based on the Código de Trabajo, outlines employers’ obligations. And the government actively enforces these rules through the Ministry of Labor and Social Security (MTSS). 

So, what does the leave policy in Costa Rica actually look like? 

It includes 14 days of paid time off in Costa Rica after 50 weeks of work, 12 paid holidays a year, 4 months of maternity leave, and 8 days of paternity leave for biological fathers. 

Additionally, there’s a cost-sharing system with the Costa Rican Social Security Fund (CCSS) that splits the bill for benefits such as sick pay and parental leave.

For businesses planning expansion or setting up operations in Central America, getting these details right can help reduce legal troubles. This guide walks through different categories of leave entitlements in Costa Rica, so you know exactly where you stand.

Vacation & annual leave in Costa Rica

Once an employee has worked 50 consecutive weeks with you, they earn 2 weeks of paid vacation. 

However, vacation days don’t carry forward unless there is a written agreement in place. 

Typically, the employee is expected to use them within the period they’ve been earned. You also can’t count public holidays or weekly rest days as part of the 14 days. Those are tracked separately.

For companies managing people in multiple countries at once, tracking paid time off in Costa Rica alongside other statutory leave requirements gets complicated fast. 

Partnering with a workforce management platform like Payoneer Workforce Management helps keep everything in one place.

Public holidays in Costa Rica

Employees get 12 public holidays in Costa Rica per year, on top of their vacation days. 

Here’s the public holiday calendar for Costa Rica:

• New Year’s Day
• Maundy Thursday
• Good Friday
• Juan Santamaría Day
• Labor Day
• Annexation of Guanacaste
• Our Lady of Los Ángeles
• Mother’s Day (Assumption of Mary)
• Independence Day
• Day of Cultures
• Abolition of the Army Day
• Christmas Day

Sick leave in Costa Rica

The statutory requirement for sick leave in Costa Rica is limited. You must grant at least one day so the employee can see a doctor. 

What happens after that depends on the specific circumstances and the employee’s enrollment with the Costa Rican Social Security Fund (CCSS).

Typically, for the first 3 days, the employee is compensated at 100% of the salary, 50% each by the employer and the social security.

However, from the fourth day, the employee is paid by the social security, at 60% of the wage.

Even though the law sets a relatively low bar here, most employers find it helpful to have a clear internal sick leave policy. Employees want to know what’s covered and what isn’t. Having that documented upfront saves you from difficult conversations later.

Maternity leave in Costa Rica

Maternity leave in Costa Rica lasts 4 months. Typically, it is split one month before the expected delivery date and three months after the baby is born.

That’s a significant period to plan around, especially for smaller teams. The employee doesn’t need a minimum length of service to qualify, so this applies to all pregnant employees.

Keeping track of maternity leave alongside vacation accruals and the leave laws in Costa Rica around holidays can get tricky when you’re also managing teams in other countries. 

An employer of record in Costa Rica can help streamline the administrative burden.

Paternity leave in Costa Rica

Paternity leave in Costa Rica is for biological fathers only. They get 2 days per week during the first 4 weeks after the child’s birth. That works out to 8 days total.

The format is unusual compared to other countries. Instead of a single block of time off, the leave is spread across 4 weeks. The attendance and payroll systems need to account for that structure, since the employee is essentially going in and out over the course of a month.

Costa Rica is one of the few Central American countries with a statutory paternity leave in its framework. For help managing it, explore Payoneer Workforce Management’s EOR services in Costa Rica.

Other types of leave in Costa Rica

There’s one more specific leave entitlement in Costa Rica that employers should have on their radar.

Pregnancy status leave

Employers have to give up to one paid day off so the employee can get a medical certificate or proof of pregnancy from the CCSS. This is its own thing, completely separate from the four-month maternity leave.

Childcare, compassionate, and wedding leave

The Costa Rican Labor Code doesn’t mandate any of those rights now. Some employers offer them voluntarily as part of their benefits package or through collective agreements, but there’s no legal requirement.

Staying on top of what’s required versus what’s optional under leave laws in Costa Rica is the kind of detail that’s easy to miss when you’re hiring across borders. 

A partner like Payoneer Workforce Management can support with the local compliance, so you can focus on expansion.

Explore Payoneer Workforce Management in Costa Rica

Getting the leave policy in Costa Rica right means building systems that track vacation accruals, manage parental leave timelines, and account for holiday pay. And if you miss something, you may be looking at penalties from the MTSS.

Payoneer Workforce Management offers Employer of Record (EOR) services that help businesses onboard, pay, and manage employees in Costa Rica without setting up a local entity. 

We offer payroll processing, statutory benefits, and time-off tracking, all from one dashboard.

Need to hire employees in Costa Rica? Or engage contractors for a specific project? 

Payoneer Workforce Management supports both across 160+ countries with payments in 70+ currencies.

Book a demo today to see how we can help.

FAQs

1. Can employees carry over unused vacation time in Costa Rica?

No. Vacation days should be taken within the period they’re earned, unless there is a written agreement between the employer and the employee. Typically, the leave carry-forward policy in Costa Rica does not allow rolling unused days into the next year.

2. How does sick leave work in Costa Rica?

The employer shall give at least one day so that the employee may visit a doctor. Beyond that, it depends on the situation and the employee’s enrollment with the Costa Rican Social Security Fund (CCSS).

3. How long is maternity leave in Costa Rica?

The total months given for maternity leave are 4 months. This is one month before giving birth to the baby and three months after giving birth to the baby.

4. Do fathers get paternity leave in Costa Rica?

Yes. The biological fathers are given 8 days for paternity leave. This is 2 days every week during the first 4 weeks after giving birth to the baby.

5. Does Costa Rica require compassionate or wedding leave?

The Labor Code does not currently mandate compassionate leave, wedding leave, or childcare leave. Some employers offer these voluntarily through company policy or collective agreements.