Paid time off

Paid time off in Costa Rica is governed by statutory minimum entitlements that accrue based on continuous service. Employees are entitled to a minimum of two weeks of paid vacation for every fifty weeks of continuous service. This requirement applies across all employment sectors and cannot be reduced by employment contract or collective agreement.

The entitlement is codified in Costa Rica's labor legislation, with the specific framework referenced in proyecto de ley materials and labor code provisions enforced by the Ministry of Labor and Social Security. The two-week minimum per fifty-week service cycle establishes a baseline that employers must respect regardless of industry, company size, or employment classification.

Accrual operates on a continuous basis, meaning employees accumulate vacation rights proportionally throughout their employment relationship. An employee completing fifty weeks of uninterrupted service becomes entitled to take two weeks of paid leave. This accrual continues with each subsequent fifty-week period, so an employee with one hundred weeks of service holds entitlement to four weeks of vacation.

Employers must track continuous service periods carefully to ensure compliance. Interruptions to service—such as authorized leave, suspension, or termination—affect the calculation of continuous weeks. Vacation time must be granted within reasonable timeframes and cannot be systematically denied or deferred indefinitely. Unused vacation accrues and must be compensated upon termination of employment at the employee's regular wage rate. Payroll teams should maintain detailed service records and vacation tracking systems to document accrual, usage, and any outstanding balances for audit and compliance purposes.