Navigating employment regulations is crucial for businesses expanding internationally. In Costa Rica, labor laws, particularly those governing working hours and overtime, are designed to protect employees and ensure fair compensation. Understanding these regulations is essential for compliance and building a positive working relationship with your team in the country.
Costa Rican labor law, primarily governed by the Labor Code, sets clear standards for the duration of the workday and workweek, as well as requirements for rest periods and overtime pay. Adhering to these rules is a fundamental aspect of operating legally and ethically within the country's employment framework for 2025.
Standard Working Hours and Workweek Structure
Costa Rican law defines different maximum working hours based on the type of shift. The standard workweek is typically six days, followed by a mandatory rest day.
There are three main types of shifts with corresponding maximum hour limits:
- Day Shift (Jornada Diurna): Work performed between 5:00 AM and 7:00 PM.
- Night Shift (Jornada Nocturna): Work performed between 7:00 PM and 5:00 AM.
- Mixed Shift (Jornada Mixta): A shift that includes hours from both the day and night periods, provided the night hours do not exceed three and a half hours. If night hours exceed this, the entire shift is considered a night shift.
The maximum ordinary working hours are as follows:
| Shift Type | Maximum Daily Hours | Maximum Weekly Hours |
|---|---|---|
| Day Shift | 8 hours | 48 hours |
| Mixed Shift | 7 hours | 42 hours |
| Night Shift | 6 hours | 36 hours |
These limits represent the maximum ordinary hours an employee can work before overtime rules apply.
Overtime Regulations and Compensation
Work performed beyond the maximum ordinary hours for a given shift type is considered overtime (horas extra). Overtime work must be compensated at a higher rate than ordinary hours.
The standard compensation rate for overtime in Costa Rica is 150% of the employee's ordinary hourly wage. This means for every hour of overtime worked, the employee must be paid at one and a half times their regular rate.
| Type of Work | Compensation Rate (relative to ordinary hourly wage) |
|---|---|
| Ordinary | 100% |
| Overtime | 150% |
While the law permits overtime, it should be occasional and not a regular part of the employee's schedule. There are no strict legal limits on the amount of overtime that can be worked, but it must be voluntary (though often implied by the employment contract or company policy) and properly compensated.
Rest Periods and Break Entitlements
Employees in Costa Rica are entitled to mandatory rest periods during their workday and workweek.
- Daily Break: For every continuous workday, employees are entitled to a minimum paid break of 30 minutes. This break is considered part of the effective working time and must be compensated.
- Weekly Rest Day: Employees are entitled to at least 24 consecutive hours of paid rest per week. This rest day is typically Sunday, but it can be another day of the week based on agreement or the nature of the work, provided it is clearly established.
| Rest Period | Minimum Duration | Status |
|---|---|---|
| Daily Break | 30 minutes | Paid |
| Weekly Rest Day | 24 consecutive hours | Paid |
These rest periods are fundamental rights and cannot be waived by the employee or employer.
Night Shift and Weekend Work Regulations
As noted under standard hours, night shifts (7:00 PM to 5:00 AM) have a shorter maximum duration (6 hours daily, 36 hours weekly) compared to day shifts due to the nature of working during these hours.
Working on the mandatory weekly rest day (typically Sunday) is permitted only under specific circumstances and must be compensated at the overtime rate. If an employee works on their designated paid rest day, they are entitled to receive their ordinary wage for the hours worked plus an additional 50% premium, effectively resulting in payment at 150% of the ordinary rate for those hours.
Working on official public holidays also has specific rules, generally requiring double pay (200%) plus compensatory rest, or triple pay (300%) if no compensatory rest is provided.
Working Time Recording Obligations
Employers in Costa Rica have a legal obligation to maintain accurate records of the working hours of their employees. This is crucial for demonstrating compliance with maximum hour limits, overtime regulations, and rest period entitlements.
These records should clearly show:
- The start and end time of each workday.
- Any breaks taken.
- The total number of ordinary hours worked per day and week.
- The total number of overtime hours worked per day and week.
- The compensation paid for ordinary and overtime hours.
Maintaining diligent and accurate time records is a key employer responsibility and serves as proof of compliance in case of labor inspections or disputes.
