Leave Policy in Costa Rica

Costa Rica's leave framework is governed by the Código de Trabajo, enacted as Ley N° 2 of 1943 and updated through subsequent amendments, which establishes binding statutory minimums that apply to all employment relationships in the country. These minimums cover annual leave, maternity and paternity leave, public holidays, and sick leave, and they represent the floor below which no employer may fall, regardless of any internal company policy that may supplement or build upon them.

For employers managing a Costa Rica workforce, compliance means navigating obligations that are split across multiple parties, including direct employer responsibilities and contributions coordinated through the Caja Costarricense de Seguro Social, the national social security institution. Gloroots supports this through its Employer of Record service, which handles statutory filings, CCSS contributions, and leave tracking under a unified employment governance structure, removing the need for employers to establish a local legal entity.

Leave Policy at a Glance

Overview and Legal Basis for Leave in Costa Rica

Costa Rica's leave framework is governed primarily by the Código de Trabajo (Ley N° 2 of 1943) and its amendments, including Law 10211 (May 2022) and Law 10397 (November 2023). These statutes set statutory minimums that apply to all employment relationships in the country.

The Caja Costarricense de Seguro Social (CCSS) provides a secondary regulatory layer, administering subsidies for sick leave, maternity leave, and paternity leave. Employers must distinguish between these statutory floors and any additional leave granted through individual contracts or company policy.

Costa Rican law covers the following leave categories:

• Annual leave (vacation)

• Sick leave

• Maternity leave

• Paternity leave

• Adoption leave

• Bereavement leave

• Public holidays

• Voting leave

• Breastfeeding breaks

• Caregiver leave

Employers managing staff in Costa Rica through entity-free employment should understand how does EOR work to ensure every statutory obligation is met correctly from day one.

Annual Leave (Earned / Privilege Leave)

Under Article 153 of the Código de Trabajo, employees earn 14 calendar days of paid annual leave after completing 50 consecutive weeks with the same employer. This is the statutory minimum and cannot be reduced by contract.

Before reaching 50 weeks, employees accrue one day of leave per month worked. If employment ends before the 50-week threshold, the employer must pay out all accrued days in full. This accrual rule protects workers regardless of contract length.

On termination for any reason, the employer must pay out the full balance of all unused accrued leave. No portion may be forfeited.

Key rules governing scheduling and carry-forward:

• Timing: Article 156 requires that leave scheduling account for both the employee's preference and the employer's operational needs.

• Written agreement: Any adjustment to leave timing or carry-forward must be documented in writing by both parties.

• Carry-forward limit: Unused leave may accumulate for up to two consecutive years by written mutual agreement under Article 156. Beyond that period, the employer must schedule the leave.

• Encashment on exit: Full payout of all accrued unused leave is mandatory on termination, with no exceptions.

Employers should maintain accurate leave records from the first month of employment. Accrual begins immediately, and any gap in documentation creates payroll liability on separation.

Public Holidays

Costa Rica recognizes 13 public holidays each year: 9 mandatory paid holidays and 4 non-mandatory holidays. Employers must pay double the regular daily wage to any employee who works on a mandatory holiday. For a regional comparison, see the leave policy in Mexico, where public holiday rules follow a different structure.

Three holidays follow a moveable-date rule. Juan Santamaría Day (11 April), Annexation of Nicoya (25 July), and Mother's Day/Assumption of Mary (15 August) shift to the following Monday when they do not fall on a Monday. If an employee works on the actual calendar date, the employer must grant a replacement holiday within 15 days.

Verify this table annually. Holiday dates and classifications can change by legislative decree.

Sick Leave

Costa Rica's sick leave system splits payment responsibility between the employer and the Caja Costarricense de Seguro Social (CCSS), the national social security institution.

For the first three days of illness, the employer pays 50% of the employee's salary and the CCSS pays the remaining 50%. From day 4 onward, the CCSS covers 60% of salary and the employer has no further payment obligation.

To qualify for CCSS benefits, the employee must submit a medical certificate within 48 hours of the first absence. Without that certificate, CCSS eligibility is forfeited for that episode.

There is no statutory cap on how long CCSS-covered sick leave can last. Duration is subject to ongoing CCSS medical review. Sick leave does not accrue or carry forward between periods; entitlement is event-based and tied to each individual illness episode. For context on how a comparable social-security sick pay model operates in the region, see the leave policy in Colombia.

Casual Leave

Costa Rica's Labor Code does not establish a separate statutory category for casual leave. There is no distinct entitlement set apart from annual leave.

Short-notice absences for personal matters are typically handled through an employee's annual leave balance or at the employer's discretion. Employers may grant casual leave as a contractual benefit above the statutory floor, but no law requires it.

Because no statutory casual leave exists, there is nothing to carry forward at year end. Any carry-forward or usage rules depend entirely on what the employment contract specifies.

Maternity Leave

Costa Rica's Labor Code (Article 95) grants employees 4 months of maternity leave in total: 1 month (28 days) before the expected birth date and 3 months (84 days) after delivery.

Pay during leave is 100% of salary, split equally between the employer (50%) and the Costa Rican Social Security Fund, known as the CCSS (50%). To qualify, the employee must present a doctor's certificate at least 5 weeks before the leave begins.

Upon returning to work, the employee is entitled to 1 hour of breastfeeding time per day under Article 96. That hour can be structured in four ways:

• A 1-hour reduction in the daily workday

• One continuous 1-hour break

• Two 30-minute breaks

• One 15-minute break for every 3 hours worked

Employers with on-site staff must also provide a dedicated physical space for breastfeeding.

Maternity leave entitlement by scenario

Managing these statutory obligations accurately requires tracking eligibility dates, coordinating CCSS contributions, and maintaining compliant documentation. Employers without a local entity can use EOR services to execute these requirements under local law without setting up a separate legal structure.

Paternity Leave

Biological fathers in Costa Rica are entitled to 8 days of paid paternity leave under Law 10211 (May 2022), structured as 2 days per week during the first 4 weeks after birth.

Payment is at 100% of salary, split equally between the employer (50%) and the CCSS (50%).

If the mother dies during childbirth or within 3 months post-partum, the father inherits the remaining maternity leave entitlement, up to 3 months post-birth. This extended leave is paid by the CCSS under Law 10397 (November 2023, Art. 95(c)). A PANI certification is required to access this entitlement.

Adoption and Surrogacy Leave

Adoptive parents in Costa Rica are entitled to 3 months of paid leave under Labor Code Art. 95(a). Leave begins the day after the child is placed with the adoptive family.

In a joint adoption, both parents may divide the leave between them. Payment is at 100% of salary, funded 50% by the employer and 50% by the CCSS. A certificate from PANI (National Children's Trust) or a court order is required to qualify.

Surrogacy leave is not explicitly addressed in the current Labor Code. In practice, adoption leave provisions are the closest applicable framework for surrogacy arrangements.

Bereavement Leave

Costa Rica's Código de Trabajo grants employees paid bereavement leave when a close family member dies. The statutory minimum is three days of paid leave.

Covered relationships include spouses, children, and parents. Coverage for extended family members such as siblings or grandparents is not explicitly mandated by statute, though collective agreements or individual employer policies may extend both the duration and the scope of covered relationships.

Other Leave Types

Costa Rican law provides several additional leave entitlements beyond the core categories.

Voting leave: Under the Costa Rica Electoral Code, employers must grant and pay for the time an employee needs to travel to a polling station, vote, and return on election days. The duration depends on the employee's distance from the polling station.

Breastfeeding breaks: Employees returning from maternity leave are entitled to one hour per day for breastfeeding, as established under Article 96 of the Código de Trabajo. This entitlement is detailed in the Maternity Leave section of this page.

Caregiver and palliative leave: Employees who are the primary caregiver of a terminally ill dependent are entitled to leave. The Costa Rican Social Security Fund (CCSS) pays a subsidy during this period. Employers must grant the leave and guarantee reinstatement to the same position, on the same terms and conditions, upon the employee's return.

Leave without pay: No statutory entitlement exists for general unpaid leave, but employers and employees may agree to it by mutual consent for personal reasons not covered by other leave categories. This arrangement is common in practice.

Carry-Forward and Leave Encashment Rules

Costa Rica's Labor Code (Art. 156) permits unused annual leave to accumulate for a maximum of two consecutive years, provided both employer and employee agree in writing. Beyond that window, the leave cannot be deferred further.

On termination, employers must pay out all accrued unused annual leave. This obligation is mandatory, not discretionary. Before an employee completes 50 weeks of service, leave accrues at one day per month and is also paid out in full on termination.

Sick leave does not carry forward. It is an event-based entitlement tied to each illness episode. Public holidays are not subject to encashment under any circumstance.

For a useful international comparison, see how leave policy in the UK handles carry-forward and encashment obligations, which differ notably from Costa Rica's written-agreement model.

Best Practices for Managing Leave Compliantly in Costa Rica

Four practices reduce compliance risk for employers operating in Costa Rica.

• Document leave agreements in writing. Art. 156 requires written mutual agreement for leave timing and carry-over. Verbal arrangements do not satisfy this requirement.

• Track accrual from day one. Monthly accrual begins before the 50-week mark. Accurate records protect the employer on termination and during audits.

• Register employees with CCSS promptly. CCSS contributions (approximately 26.67% of gross salary) fund sick, maternity, and paternity subsidies. Late registration creates both financial and legal exposure.

• Monitor Labor Code amendments. Law 10211 (2022) and Law 10397 (2023) introduced significant paternity leave changes. Staying current prevents policy gaps.

Using employer of record software helps HR teams automate accrual tracking, maintain audit-ready records, and apply statutory updates without manual intervention.

Managing Leave Policy in Costa Rica with Gloroots

Costa Rica's leave framework spans the Código de Trabajo, Caja Costarricense de Seguro Social (CCSS) regulations, Law 10211, and Law 10397. For international employers, administering these rules accurately across multiple leave types is operationally demanding.

Gloroots runs leave administration as part of its Global Employer of Record (EOR) service. This covers leave balance tracking, CCSS contribution management, and payroll integration for split-payment leave types including maternity, paternity, and sick leave.

Compliance reporting is built into the platform, giving HR and Finance teams centralized visibility over statutory obligations without requiring a local entity. Review pricing to understand the cost of managing Costa Rica employment through Gloroots.

Frequently Asked Questions About Leave Policy in Costa Rica

How is annual leave calculated in Costa Rica?

Employees earn a minimum of two weeks of paid vacation after completing 50 weeks of continuous work for the same employer.

Leave accrues proportionally during the first year. Employers must pay vacation at the employee's ordinary wage rate, and the entitlement cannot be replaced by a cash payment while the employment relationship continues.

Which public holidays are mandatory in Costa Rica?

Costa Rica recognizes 12 mandatory paid public holidays per year, including New Year's Day, Juan Santamaría Day, Holy Thursday, Holy Friday, Labor Day, and Christmas Day.

Some holidays, such as Afro-Costa Rican Culture Day on August 31, are observed but may be compensated differently depending on the employment agreement and sector.

How much paternity leave are fathers entitled to?

Under Law 9875, fathers are entitled to two days of paid paternity leave immediately following the birth of a child.

This leave is fully paid by the employer. It is separate from any parental leave arrangements and applies to all private-sector employees covered by the Código de Trabajo.

Is unused annual leave paid out on termination?

Yes. When employment ends, employers must pay out any accrued but unused vacation leave at the employee's current ordinary wage rate.

This obligation applies regardless of the reason for termination, whether resignation, dismissal, or mutual agreement. The payment is calculated on the proportional leave earned up to the final working day.

How does the CCSS sick leave subsidy process work?

For sick leave beyond the first three days, the CCSS pays a subsidy equal to 60 percent of the employee's average wage. The employer covers the first three days at full pay.

Employees must present a medical certificate issued by a CCSS-registered physician. The employer submits the documentation to CCSS, which then processes and pays the subsidy directly to the employee.

How is annual leave calculated for employees in Costa Rica?

Employees earn 14 calendar days of paid annual leave after 50 consecutive weeks with the same employer, as set out in Labor Code Article 153. Before reaching 50 weeks, employees accrue one day per month. Part-time employees receive leave on a proportional basis using the same weekly formula.

Which public holidays are mandatory paid days off in Costa Rica?

Costa Rica's Labor Code establishes 9 mandatory paid public holidays. These are New Year's Day, Juan Santamaría Day, Maundy Thursday, Good Friday, Labor Day, Guanacaste Day, Mother's Day and Assumption of Mary, Independence Day, and Christmas Day. Employees who work on any of these days must receive double pay.

How does paternity leave work in Costa Rica?

Biological fathers are entitled to 8 days of paid paternity leave under Law 10211, enacted in May 2022. Leave is taken as 2 days per week across the first 4 weeks after birth. The full salary is paid at 100%, split equally between the employer and the CCSS.

What happens to unused annual leave when employment ends in Costa Rica?

Employers must pay out all accrued unused annual leave on termination. This is a mandatory obligation under the Labor Code, not a discretionary benefit. Employees who have not yet completed 50 weeks of service receive payment for each month of accrued leave at a rate of 1 day per month.

How does the CCSS sick leave subsidy work for employees?

For the first three days of illness, the employer pays 50% of the employee's salary and CCSS covers the remaining 50%. From day four onward, CCSS pays 60% of salary directly, with no further employer obligation. Employees must submit a medical certificate to CCSS within 48 hours to qualify.

Can an employer cancel approved annual leave in Costa Rica?

The Labor Code requires that vacation timing be agreed upon with consideration for both employee preference and operational needs. The Code does not explicitly prohibit cancellation, but unilateral cancellation after approval is generally treated as a breach of the mutual agreement required under Article 156.

Can unused annual leave be carried forward in Costa Rica?

Yes. Unused annual leave may be carried forward for a maximum of two consecutive years, but only by written mutual agreement between employer and employee under Labor Code Article 156. Beyond two years, accumulation is not permitted and any remaining balance must be paid out.