Testimonial
Manuel Ramos
TERAO ASIA
Managing Director
We think INS Global is a good solution about starting in a market like China. Understanding the market doesn’t mean you need to set up a company immediately.
5/5
INS Global is the ideal global partner to help you make a quick, safe entry into Costa Rica and move past red tape and hassles in full legal compliance. INS Global offers PEO (Professional Employer Organization) and Employer Of Record (EOR) services in over 160 countries for companies that want to expand overseas.
For companies looking to expand their services safely, quickly, and cost-effectively, a PEO (Professional Employer Organization), like a global EOR, is the perfect way to access global mobility expertise. An INS Global PEO in Costa Rica lets companies recruit and assure HR services for employees in-country in as few as two days.
An EOR (Employer of Record) acts as an employer for purposes of outsourcing complex employer responsibilities. This is particularly useful for companies looking to expand their services globally in a safe and cost-effective way. INS Global’s EOR in Costa Rica allows companies to follow their global expansion plans in less than 48h.
All you need to do is pay a single monthly fee to your PEO partner, and then you can enter your target market in a fraction of the time it would take otherwise
Rather than handling different teams and departments for HR services, you can have all your needs met quickly and safely with just one point of contact
Branching out into new markets with a company is not a simple process. Even the smallest mistakes can lead to paying high penalties and fees. By partnering with a PEO or EOR, you eliminate high levels of risk and be assured of full legal security.
Manuel Ramos
TERAO ASIA
Managing Director
We think INS Global is a good solution about starting in a market like China. Understanding the market doesn’t mean you need to set up a company immediately.
A PEO and an EOR are often mentioned together. Still, they are not identical in how they function and the services provided. To choose the best option to partner with, you should understand their similarities and differences.
INS Global offers both PEO and global EOR services in Costa Rica so that you can have the best possible services available.
Written employment contracts should be in Spanish and include all details of the employee’s rights, benefits, and compensation.
Salary and compensation must be in Costo Rican colón and not in any foreign currency. Verbal contracts are permitted for temporary work for a maximum duration of 90 days.
Probation periods usually last three months.
The maximum number of work hours per week is 48. Night hours are counted from 7 p.m. to 5 a.m. and cannot exceed 6 hours a day or 36 hours a week. A mixed shift that includes both day and night hours is counted as night work if the work past 7 p.m. is more than three hours. The maximum amount for mixed shifts and nighttime work is 42 hours a week.
Overtime is paid at 50% more than the average hourly wage and cannot be more than four hours daily.
All employees are entitled to receive a Christmas bonus equal to one month’s salary and must be paid this amount between December 1-20th.
There are 9 days of national holiday in Costa Rica. Employees who must work on holidays receive double their regular wages.
Annual paid vacation days are 15 days for employees who have worked a minimum of 50 weeks with their employer. Employees are allowed to split their vacation time into two segments; unused leave can only be carried over to the next year if the employee’s work prevented them from taking time off.
Employees who have made social security payments up to the month before their illness are eligible for 365 days of sick leave. The first three days of sick leave are compensated at 100% of the standard salary; 50% is paid by the employer and 50% by the state. From the fourth day of sick leave, the employee will be compensated by the state with 60% of their salary.
Expectant mothers receive one month of leave before birth and three months after. They receive 100% of their salary, half of which is paid by their employer and the other half by the state.
As of 2022, fathers receive 2 days of paternity leave each week for the first four weeks after birth. The new laws also allow mothers to take one hour of paid time off to breastfeed.
Adoptive fathers and mothers jointly receive three months of paid leave after placement of the adoptive child. The payment follows the same regulations as paid maternity leave.
As of 2022, corporate tax for companies with a gross annual income of more than CRC112,070,000 is 30%. Companies with a lower gross annual income than that amount are taxed less.
Personal income tax ranges from 10-25% for annual income amounts above 3.8 million colón.
Both employees and employers are required to pay toward social security contributions. Employees pay around 10.5%, while employers pay 26.5-34.5%.
No, it is necessary to use a local entity abroad to comply with each country labor law.
Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.
The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.
In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.
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