Costa Rica Statutory and Private Employee Benefits, 2023 Update

Costa Rica Statutory and Private Employee Benefits Overview

The social security system of Costa Rica provides universal cover for the healthcare and old age needs of the people. While all employees are required to contribute, the social security system also takes care of those unable to do so. The means-tested system ensures that people living in poverty have access to necessities. The Caja Costarricense de Seguro Social (Costa Rican Department of Social Security, CCSS) is the main regulator of the Costa Rican social security system.

The Costa Rica employee benefits report provides in-depth industry analysis, information, and insights into employee benefits, an overview of the state and compulsory benefits, detailed information about the private benefits, insights on various central institutions responsible for the administration of the different branches of social security and the regulatory framework of the employee benefits in Costa Rica.

Employee Benefits Regulations in Costa Rica

The chief laws that govern employee benefits offered in Costa Rica are:

• Codigo de Trabajo (Labor Code)
• Ley de Desarrollo Social y Asignaciones Familiares (Law of Social Development and Family Allowances)
• Reglamento del Seguro de Salud (Health Insurance Regulation)
• Reglamento del Seguro de Invalidez, Vejez y Muerte (Regulation Disability Insurance, Old Age and Death, IVM)

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Costa Rica Employee Benefits Segmentation by State and Compulsory Benefits

The key state and compulsory benefits offered by employers in Costa Rica are retirement benefits, death in service, long-term disability benefits, short-term sickness benefits, medical benefits, workers’ compensation insurance, maternity and paternity benefits, and other benefits.

Retirement Benefits: The social security system in Costa Rica is designed to provide a steady income and financial support to employees, even after retirement. They receive pensions and other benefits from one or more sources. Each retirement scheme has a different method of funding. There are separate pension systems for teachers, people employed in Costa Rica’s judicial system, and firefighters. For instance, El Seguro de Invalidez, Vejez y Muerte (The Insurance of Invalidity, Old-age, and Death – IVM) is the main pillar of Costa Rica’s retirement benefits system. IVM is a DB plan wherein the pension payable after retirement is funded by contributions from employees, employers, and the state. Self-employed people can also contribute to the fund and access the benefits. The scheme also provides disability and survivors’ pensions and is managed by the CCSS.

State and Compulsory Benefits in Costa Rica

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Costa Rica Employee Benefits Segmentation by Private Benefits

The key private benefits offered by the employers of Costa Rica are retirement benefits, death benefits, medical benefits, disability benefits, accidental death and dismemberment benefits, and other benefits.

Medical Benefits: The country has a robust public healthcare system that offers 100% of coverage for all medical expenses. Most employers provide health benefits under group health plans, which supplement the public healthcare system. Group life and group accident plan also offer medical benefits as riders. International health insurance plans provide worldwide coverage. Expats have the option to get themselves covered under the expat health insurance plans, which gives them the flexibility to choose a doctor or hospital of their choice.

Private Employee Benefits in Costa Rica

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Scope

This report provides a detailed analysis of employee benefits in Costa Rica –

• It offers a detailed analysis of the key government-sponsored employee benefits, along with private benefits.
• It covers an exhaustive list of employee benefits, including retirement benefits, death in service, long-term disability benefits, medical benefits, workmen’s compensation insurance, maternity and paternity benefits, family benefits, unemployment benefits, long-term care benefits, leaves and holidays, and private benefits.
• It highlights the economic and regulatory situations relating to employee benefits in Costa Rica.

Key Highlights

• Ministry of Labor and Social Security, Costa Rican Social Security Fund, Superintendent of Pensions, National Institute of Insurance organizations are responsible for the functioning of the overall social security system.

• A person’s national insurance contribution is determined based on their income.

• An insured person who is unemployed or unable to work and whose benefits have been exhausted is entitled to credited contribution.

• In Costa Rica, employers provide voluntary retirement benefits to their employees through RVPCs, a DC retirement plan operated by an approved OPC. Only the Complementary Pension Operators (OPC) offer the plans.

Reasons to Buy

• Make strategic decisions using in-depth information related to employee benefits in the country.
• Assess employee benefits of the market, including state and compulsory benefits and private benefits.
• Gain insights into the key employee benefit schemes offered by private employers in the country.
• Gain insights into key organizations governing the employee benefits market, and their impact on companies.