Employer of Record in Costa Rica

How hiring through an employer of record works in Costa Rica

A local employer holds the Costa Rican contract, registers with the CCSS and runs payroll, while your managers direct the work. Labour Code Article 18 defines an employment contract by permanent dependence, direction and pay of any kind, whatever it is called, and presumes one exists between whoever works and whoever receives the service.

Outside the Article 22 exceptions, such as farm work or jobs of up to 90 days, the contract must be written in three copies, one sent by the employer to the MTSS Employment Office within 15 days. Employers register with the CCSS within eight business days of starting activity and report their workers monthly.

Employer costs and contributions in Costa Rica

For 2026 the employer pays 9.25% of salaries to CCSS health insurance and 5.58% to the CCSS pension, IVM. The IVM rate holds to 31 December 2028 and rises to 5.75% in 2029. Employees pay 5.50% for health, 4.33% for IVM and 1% to the Banco Popular.

Statute adds 5% to Asignaciones Familiares, 0.5% to the IMAS, 1.5% to the INA where an employer keeps at least five permanent workers, 0.5% to the Banco Popular and 1.5% to the labour capitalization fund. These lines total 23.83%. Law 7983, article 13, adds 3% to the mandatory complementary pension, which makes 26.83% before the compulsory INS risk premium that Toku confirms in your quote.

Working time, leave and pay rules in Costa Rica

• Hours: ordinary work is capped at 8 hours by day, 6 at night and 48 a week. Overtime pays 50% more, and total daily hours cannot pass 12 outside emergencies.
• Rest and holidays: one full rest day each week, paid double if withheld. Nine holidays are paid by law, and three more carry no compulsory pay. Paid maternity leave is one month before birth and three after.
• Vacation: two weeks for every 50 weeks of continuous work, paid out in money only in set cases such as leaving the job.
• Aguinaldo: the MTSS says anyone with a month of service receives, in the first 20 days of December, all wages from 1 December to 30 November divided by twelve.

Probation, notice and termination in Costa Rica

The Labour Code has no general probation clause and sets a three-month trial only for domestic work. For other staff, notice and cesantía both start after three months of continuous work.

Either side can end an open-ended contract without cause by written notice: one week after three to six months, 15 days after six months to a year, one month after a year, or pay in lieu. Cesantía on dismissal without cause is 7 days of salary after three to six months, 14 days after six to twelve, then 19.5 days or more per year of service, for at most the last eight years.

Dismissal for just cause carries no liability, but if the cause is not proved the worker is owed notice, cesantía and salary until final judgment.

Getting paid in stablecoins, USDC, USDT, tokens and crypto in Costa Rica

Short answer: No. Article 165 of the Labour Code requires a money wage to be paid in legal currency and forbids paying in vouchers, chips or any other sign meant to replace the currency, and the central bank says crypto assets are not legal tender, so a USDC payout cannot replace colón pay.

What the law says about the form of pay

Labour Code Article 165 requires a wage agreed in money to be paid in legal currency and absolutely forbids paying in goods, vouchers, chips, coupons or any other sign meant to replace the currency. Article 166 limits salary in kind to food, housing, clothing and other items for immediate personal consumption. Central Bank Law 7558 makes the colón the monetary unit and its banknotes and coins the legal means of payment.

What it means for employee salary

USDC and USDT are neither Banco Central banknotes or coins nor the items Article 166 describes, so they cannot replace the colón salary. A 2021 essay by the Banco Central's president says crypto assets are not legal tender, nobody must give or receive them as payment unless contractually committed, and lawful use is permitted because no law forbids it. That permission does not override Article 165. Law 10961 of 9 June 2026 added article 15 quater to Law 7786: virtual asset providers register with the SUGEF for anti money laundering supervision, and registration is not an authorisation to operate. Toku confirms what applies to a specific hire.

Contractors

No official page reviewed regulates paying contractors in crypto, and the Banco Central says acceptance depends on what the parties agree.

Tax on crypto and tokens

Income tax law 7092 taxes salaries and salary in kind as employment income that the employer withholds, and the aguinaldo is exempt up to one twelfth of the year's salaries. The Banco Central essay records that Hacienda said cryptocurrencies cannot pay taxes under current law. This page does not state how crypto received as income or later sold is taxed, so confirm with local tax advice.

How Toku handles it

Employee salary in Costa Rica stays in local currency. Toku’s stablecoin payroll and its USDC or USDT payouts through contractor management are separate arrangements from employee salary, and token grants are administered through token grant administration. What applies to a specific hire in Costa Rica is confirmed before an offer.

Reviewed November 7, 2026 against the official sources listed below. General information, not legal or tax advice. Tax on crypto or tokens received depends on local rules and where the person is resident, so confirm it with a local adviser.

How hiring through Toku works in Costa Rica

1. Share the role, location, salary and start date.
2. Toku confirms coverage, the contract type and the right to work.
3. The local employer issues the contract and onboards the person.
4. Payroll, contributions and filings run each cycle.

Toku checks the role, work location and contract type before a start date is set. Prepare identification, colón bank details and the signed written contract. Your quote confirms the onboarding timeline for Costa Rica.

What an employer of record costs in Costa Rica

Where Toku supports the hire, its employer of record service starts at $599 per employee per month, with salary, employer contributions and benefit premiums itemized in your quote. Coverage in Costa Rica is confirmed before an offer. See the published pricing.

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