Costa Rica Labor Code on Social Security System
The Costa Rica Labor Code has made it mandatory for employers to have their employees register with the Social Security system. The employer has to first register with the Social Security Administration as an employer. This registration can be either as an individual or as an incorporated business entity. The employer should be registered with the Social Security Administration office that is located nearest to the business establishment.
What documents are required for registration with the Social Security Office?
Individual employers who employ staff would be required to submit the following documents to the Costa Rica Social Security Administration:
The registration application form applicable to individuals can be obtained online or from the Social Security office.
Copies of all identification documents
Copies of identification documents of each of the employees
Copy of the power bill of the establishment or office where the employees would be working
If you apply to the Social Security Administration as a corporate entity and not as an individual employer then you would have to submit the following additional documents:
Personeria Juridica or the Certificate of Corporate Identity and Standing
Copy of documents that show the incorporation of the corporate entity that is going to be the employer
Copy of the identification document for the corporate entity which is the employer
What are the benefits of the Social Security System in Costa Rica
The Caja Costarricense del Seguro Social (CCSS), Caja, or Social Security system covers all employees for hospitalization, medical costs, and medical care. The Social Security fund also covers maternity, old age, invalidity, widowhood, burials, etc. in addition to any involuntary unemployment.
The employer has to pay 25 percent of the total salary plus another 9 percent to the Social Security Administration for each employee's account. The additional 9 percent is taken from the employee. About 3 percent of this deduction goes into the pension fund of the employee.
What happens if an unregistered employee gets injured?
The employee must be registered with the Social Security Administration within the first week of commencement of employment. The Costa Rica Government levies a penalty upon employers who fail to register their employees. If an unregistered employee falls ill or becomes injured then the employer has to pay his medical bill and half of the salary of the employee as calculated when the employee fell ill or got injured.
If the worker is registered then the employer pays only 50 percent of the salary earnings for the first three days after the event. The Social Security Administration would take care of the remaining costs.
What is the rule for pregnant women?
A pregnant employee can apply for leave of absence with full salary from one month before the expected birth of the baby to up to three months after the birth of the baby. The employer pays 50 percent of the full salary while the Social Security accounts for the other half during this period of four months.
How does the Social Security Administration work?
The Social Security Administration is controlled by the government of Costa Rica. The funds collected in the Social Security accounts cannot be transferred or used by the government for any other purpose. The Social Security fund held with the government is also not affected by any other government budgetary decisions.