Paid time off

Paid time off in Costa Rica is governed by statutory minimum entitlements that employers must provide to all employees. Under Costa Rican labor law, workers are entitled to a minimum of two weeks of paid vacation for every fifty weeks of continuous service. This entitlement accrues progressively as an employee completes service periods and represents a fundamental right designed to ensure rest and recovery during employment.

The regulation is codified within Costa Rica's labor legislation framework, with specific provisions outlined in proyecto de ley documents and referenced through vLex Costa Rica's legal database. The two-week minimum per fifty-week service cycle establishes the baseline requirement; employers may offer more generous terms, but cannot fall below this threshold.

Employers must track continuous service periods carefully to calculate accrual accurately. The "continuous service" requirement means that breaks in employment may reset the calculation, though Costa Rican law provides protections against arbitrary termination designed to circumvent accrual. Vacation time typically must be taken within a reasonable period following accrual, though specific timing arrangements may be negotiated between employer and employee.

Payroll teams administering Costa Rican employment must maintain detailed service records and calculate vacation liability as employees progress through fifty-week cycles. Upon termination, any accrued but unused vacation time must be paid out to the employee as part of final settlement. Compliance requires systematic tracking of service dates and vacation usage to ensure no employee falls below the statutory minimum entitlement.