Costa Rica Labor Code on Workman's Insurance
The Costa Rica Labor Code has been developed keeping in mind the protection and benefits of employees - even if they are part-time, daily wage earners or domestic staff - without any unfair advantage accruing to employers.
The Costa Rica Labor Code stipulates that employees must seek two kinds of insurance cover -
a) Social security
b) Workman's insurance or worker's compensation policy.
Social Security (La Caja) covers pregnancy, illness, accidents not related to work for the employee and his or her dependents.
The second type of insurance covers any accidents or illnesses relating to work, or occurring because of employment. The insurance also covers deterioration in the health of the employee because of any accidents, nature of employment, or similar incidents at the workplace.
The workman's insurance has been detailed separately by the Government to ensure that a safe and risk-free workplace environment is developed as part of all business models in Costa Rica. The mandatory nature of the workman's insurance ensures that prevention standards are maintained and developed collectively by employers across the country.
From Where Is The Workman's Insurance Obtained?
The Costa Rica Government controls the insurance sector in the country. The Instituto Nacional de Seguros de Costa Rica (INS) is the national insurance company to cover accidents that take place at the workplace. It also offers other types of insurance policies also. The INS is a well-organized Government institution that accepts applications both online and via its centers across the country.
Normal Workman's Insurance - Directives for Employers
The Costa Rica Labor Code stipulates that employers must have their employees enlist with the INS. The employer has to submit the names of the employees, their identification numbers, rates of salary or wages, and job description or category.
The INS then decides what the perceived risk is and accordingly directs a premium to be paid from the salary of the employees. Normally, INS premiums for workman's insurance range from two-three percent of the salary. The premium rate might change if workplace accidents increase.
The INS evaluates the risk factor involved in each case depending upon the premises, nature of employment, safety standards, instances of accidents having occurred in the past, etc. The premium percentage is based upon this evaluation of the workplace.
The employer also has to inform the INS about all new employees, termination of the services of old employees, other personnel information, salary status, etc. on a monthly basis.
Domestic Workers' Compensation
The INS regulations have been elaborated to include domestic employees even if they do not have documents like identification papers. The INS offers three kinds of policies depending upon number of domestic workers employed. The three groups are 1) a maid plus one casual employee 2) Two maids plus one casual employee 3) additional employee. The employer would have to go for the regular INS policy if the number of domestic employees is more or does not fall in these categories. A minimum premium payment is levied for these groups and the employer is exempted from filing any documents.