1. We invite you to keep in mind the following labor obligations for the beginning of 2025, which are detailed below:
I. D152 – Annual withholding tax return for one-time and final withholding taxes: This declaration must be submitted no later than February 28th, 2025.
II. Payment of Pensions for School Salaries: The school salary must be paid before January 15th, 2025.
2. Update of the income tax brackets for salaries for the year 2025
On Tuesday, December 3rd, 2024, the Income Tax brackets (Salary and Profits) and individual tax credits were updated in scope No. 195 of La Gaceta No. 227.
These sections apply from January 1st, 2025.
The sections that must be applied for the salary tax will be the following:
Tramo Renta | Tasa de Impuesto |
Up to ₡922,000 | Exento |
Form ₡922,000 and up to ₡1,352,000 |
10% |
Form ₡1,352,000 and up to ₡2,373,000 | 15% |
Form ₡2,373,000 and up to ₡4,745,000 | 20% |
More Than ₡4,745,000 | 25% |
Tax credits:
I. For each child, the sum of one thousand seven hundred and twenty colones (₡1,720.00)
II. For the spouse, the sum of two thousand six hundred colones (₡2,600.00)
Link https://www.imprentanacional.go.cr/pub/2024/12/03/ALCA195_03_12_2024.pdf
¿How to calculate severance pay in Costa Rica?
Severance pay is a labor right that ensures financial support for the employee at the end of his or her employment relationship. Below, we present the key points to perform this calculation according to Costa Rican legislation:
1. ¿What is severance pay?
Economic insurance is something that the employer must pay to the employee at the end of his or her employment contract, except in cases of resignation or dismissal with just cause.
2. Documents and previous steps:
• Gross salaries: Try to have the gross salaries of the last 6 months.
• Time worked: Determine the start and end date of the contract.
• Reason for leaving:
Dismissal with employer liability: Payment of severance pay, notice, vacations, and bonus.
Resignation or dismissal with just cause: Vacation pay and Christmas bonus only.
3. Calculating severance pay step by step
Step 1: Determine the time worked.
• Less than 3 months: Severance pay does not apply.
• From 3 to 6 months: Equivalent to 7 days of salary.
• From 6 months to 1 year: Equivalent to 14 days of salary.
• More than 1 year: See the days worked per year.
Year worked |
Days |
1 year worked |
19,5 days of salary |
2 years worked |
20 days of salary |
3 years worked |
20, 5 days of salary |
4 years worked |
21 days of salary |
5 years worked |
21,24 days of salary |
6 years worked |
21,5 days of salary |
7 years worked |
22 days of salary |
8 and 9 years worked |
22 days of salary |
10 years worked |
21, 5 days of salary |
11 years worked |
21 days of salary |
12 years worked |
20, 5 days of salary |
13 years worked and following |
20 days of salary |
Note: The severance pay cap is 8 years.
Step 2: Calculate the average daily salary.
For monthly payments: Divide the monthly salary by 30 days.
For weekly payments: Divide by 26 days
Step 3: Multiply the average daily salary by the corresponding days of unemployment.
Example:
Daily Salary: ₡20,000
Time worked: 5 years
Calculation: ₡20,000 x 21.5 days = ₡430,000
Additional considerations:
• Social security contributions are not deducted from unemployment benefits.
• Periods of incapacity do not count towards the calculation.
• The 4 months of maternity and paternity leave are included.
Link http://www.pgrweb.go.cr/scij/Busqueda/Normativa/pronunciamiento
The content of this newsletter is merely informative, that´s why it cannot be used under any circumstances as advice on the matter described in it. If you need advice on any of the aspects discussed, our team of professionals will be willing to assist you. contacto@jadelrio.com