Higher Minimum Wage and Social Security Contributions Taking Effect in the New Year
In addition, differentiated wage adjustments were approved for certain occupational categories.
By way of example, domestic workers received a 3.96% increase, while workers in generic-level positions received a 2.18% increase. In practical terms, this adjustment represents an additional cost for employers of approximately USD $12 to $22 per month per full-time worker, depending on the applicable occupational category.
As explained by Daniel Valverde, partner at ECIJA and labor law expert:
“For employers, this measure entails the obligation to review salary structures, budgets, and payrolls prior to the effective date, in order to determine whether increases must be applied to current wages. It is also recommended to assess the impact on operating costs, existing contracts, and internal salary scales, so that the necessary adjustments can be made in a timely manner.”
This wage increase is mandatory for all employers and applies to all workers earning the legal minimum wage, whether paid monthly, hourly, or on a piecework basis. This includes domestic workers and occasional laborers.
For employees who already earn above the legal minimum, no salary increase is required, provided their wages remain higher than the new minimum established for their specific occupation.
Social Security Contributions
In parallel, Social Security contributions will once again increase as part of a gradual adjustment process that began in 2019. In Costa Rica, monthly Social Security contributions fund public healthcare benefits, as well as pensions for disability, old age, and death, along with other social programs. These contributions are shared between employers and employees.
As of January 2026, the only change affects the Disability, Old-Age, and Death (IVM) regime. Contribution rates will increase as follows:
- Employers: from 5.42% to 5.58% of total salaries
- Workers: from 4.17% to 4.33% of salaries
As a result, the total monthly contribution burden will amount to 26.83% of total salaries for employers, while workers will contribute 10.83% of their salaries to the Costa Rican Social Security Fund.
Next Steps for Employers
As these changes take effect in January 2026, employers should proactively review their payroll structures, minimum wage compliance by occupational category, and projected labor costs. This includes confirming that all employees earning the legal minimum are adjusted accordingly, assessing the financial impact of the increased Social Security contributions, and ensuring that internal salary scales and employment contracts remain aligned with current regulations.
ECIJA can support employers throughout this process by reviewing and advising on these compliance matters. Our labor and corporate teams work closely with local and international employers to help ensure timely compliance, reduce legal risks, and implement these adjustments efficiently and with confidence.