PEO Services in Costa Rica

A co-employment model for companies that want to share the employer relationship in Costa Rica rather than hand it over entirely. Worth knowing up front: true PEO co-employment is far less established in Costa Rica than in the US, so we will tell you honestly whether PEO or an EOR genuinely fits, and place you with the right vetted partner.

  • Independent advice
  • Vetted partners
  • Honest positioning

What a PEO does in Costa Rica

A Professional Employer Organisation works on a co-employment model. You and the PEO partner share the legal employer responsibilities for your Costa Rican staff: you keep direction and day-to-day control, while the partner administers payroll, income tax, CCSS contributions, and HR compliance under a shared arrangement.

01

Shared employer role

You and the PEO partner share the legal employer responsibilities. You keep direction and control; they handle payroll, income tax, CCSS contributions, and HR administration.

02

More direct control

PEO suits companies that want to retain more direct control of the employment relationship than a full EOR arrangement allows. In Costa Rica, true co-employment is uncommon, so EOR is usually the better fit.

03

Honest recommendation

For most companies hiring in Costa Rica, EOR is simpler. We will tell you honestly whether PEO genuinely fits your structure, or whether EOR serves you better.

How PEO works in Costa Rica, step by step

From assessing the fit to a compliant co-employment arrangement.

01 — Assess the fit

We map your structure, headcount, and how much control you want to keep, and tell you honestly whether PEO or EOR serves you better. No product push.

02 — Set up co-employment

If PEO fits, we place you with a vetted Costa Rican partner and structure the shared employer arrangement correctly.

03 — Onboard your people

Compliant Costa Rican employment terms under the Código de Trabajo, with the administrative employer functions handled by the partner.

04 — Payroll & compliance

Income tax, CCSS contributions, the aguinaldo accrual, and statutory filings handled monthly, while you keep day-to-day direction.

What PEO in Costa Rica costs

As with EOR, two parts: the statutory cost of employment (predictable, run through Costa Rica’s combined CCSS scheme) and the partner service fee.

Employer CCSS contributions

26.83% of gross salary to the CCSS, plus the mandatory aguinaldo accrual, all administered under the shared employer arrangement.

Minimum wage (2026)

Set by occupational category rather than one flat rate: the reference tier for 2026 is CRC 373,092.30/month, verified against the correct category for the role.

Income tax (employee)

Progressive from 0% to 25%, exempt below CRC 918,000/month, withheld at source as part of the shared payroll administration.

PEO partner fee

A service fee for the co-employment administration. Under a shared employer arrangement, Costa Rica’s CCSS contributions and aguinaldo accrual still have to be administered correctly by someone. We benchmark across our vetted network, typically 15 to 25% below going direct.

Why arrange it through Bradford Jacobs

Why companies arrange Costa Rican PEO through us rather than going direct to a single provider.

We tell you if PEO fits your needs

We are independent: we assess what you actually need, place you with the right vetted partner, secure pricing you will not get going direct, and stay on your side to escalate or renegotiate. You get advice, not a product pitch.

  • Independent advice
  • Vetted partners only
  • On your side at renewal

Pricing you can’t get direct

Costa Rica’s CCSS contributions and mandatory aguinaldo accrual both have to be administered correctly under a shared employer arrangement, and going direct rarely prices the aguinaldo accrual in from month one. We benchmark across our vetted network for rates typically 15 to 25% below going direct, and renegotiate for you at renewal.

  • 15-25% below direct
  • Network benchmarking
  • Renegotiated for you

Straight to the top when it matters

When something needs resolving, and in global employment it sometimes does, you come to us. We escalate directly, past the helpdesk, to people who can actually move it.

  • Direct escalation
  • No support queues
  • Named account contact

Two decades of placements

Two decades placing and managing employment arrangements across global markets, with the local knowledge that prevents costly Costa Rican compliance mistakes.

  • Co-employment expertise
  • Honest fit advice
  • Right structure

We flex as your structure changes

PEO, EOR, and your own entity sit on a spectrum, and the right point shifts as you grow. We advise on the path and manage the moves, EOR to PEO, or either to your own Costa Rican S.A. or S.R.L., as your Costa Rican presence develops.

  • EOR, PEO or entity
  • Transitions managed
  • Right fit as you grow

The employer duties a Costa Rican PEO shoulders

Whichever model you use, the underlying Costa Rican rules are the same. Under a PEO arrangement, the administrative employer functions are handled for you.

Working time, leave & contracts

Compliant Costa Rican employment contracts and working-time rules (48-hour standard week, statutory overtime rules, minimum two weeks’ annual leave). Income tax and CCSS contributions withheld and filed correctly. Statutory benefits, notice, severance, and the aguinaldo applied properly.

Statutory protections & exits

Statutory notice, probation, and the protections Costa Rican employees carry under the Código de Trabajo, since dismissal without justified cause triggers notice and severance (cesantía), all handled under the shared arrangement. The value is the same as with EOR: the compliance is handled by people who do it daily. The difference is simply how much of the employer role you keep.

What a PEO arrangement covers

The co-employment administration covers all of this, under one transparent fee.

Compliant contract

A compliant Costa Rican employment contract under the Código de Trabajo, issued and maintained for you.

Payroll & filings

Monthly payroll run, with income tax and CCSS contributions calculated, withheld, and filed each month.

Statutory benefits

All statutory benefits administered: annual leave, sick pay, maternity and paternity leave, the aguinaldo, notice and severance.

Compliance & support

Ongoing HR compliance and a single point of contact, for the life of the engagement.

Your questions answered

Straight answers on how PEO co-employment works in Costa Rica.

What is the difference between PEO and EOR in Costa Rica?

With an EOR, the partner is the sole legal employer of your Costa Rican staff. With a PEO, you and the partner share the employer relationship, you keep more direct control, they handle the administration. In Costa Rica, true co-employment is uncommon, so EOR is the usual route; PEO suits specific structures.

For most companies, EOR is simpler and faster, especially with no Costa Rican entity. PEO fits when you want to share rather than outsource the employer role, or have a structure that calls for it. We assess your situation and recommend honestly.

It depends on the structure. Some co-employment arrangements assume or work alongside your own Costa Rican entity. If you have no entity and want none, EOR is usually the cleaner route. We will confirm which applies to you.

The administrative employer functions, payroll, income tax, CCSS contributions, statutory benefits, and statutory filings, are handled by the partner. We make sure the arrangement is structured so responsibilities are clear and Costa Rican law is met.

The statutory employer cost (26.83% CCSS contributions plus the mandatory aguinaldo) plus a partner service fee for the co-employment administration. We benchmark across our network for pricing typically 15 to 25% below going direct.

Yes. These models sit on a spectrum and the right one changes as you grow. We advise on the path and manage transitions, EOR to PEO, or either to your own Costa Rican S.A. or S.R.L., as your Costa Rican presence develops.

Not sure whether PEO or EOR is right for Costa Rica?

Tell us your structure and headcount and we will give you an honest recommendation, usually within a day, plus pricing you will not get direct. No product push, just the right fit.

Tax and labour data verified July 2026 (CCSS, Ministerio de Hacienda, PwC). Figures change; we confirm the current position when we scope your hire.