Costa Rica: Adjustment to CCSS Employer-Employee Contributions Effective January 2026
Costa Rica: Adjustment to CCSS Employer-Employee Contributions Effective January 2026
With fiscal year-end and budget planning underway for next year, it is important for companies be aware of the confirmed change to employer-employee contributions to the Costa Rican Social Security Fund (CCSS), which will take effect on January 1, 2026.
This adjustment comes from the Reform to the Regulations of the Insurance for Disability, Old Age, and Death (IVM) of the CCSS (Session No. 9038 of 2019), which established gradual increases in contributions to strengthen the sustainability of the pension fund.
(*) Non-agricultural employers with fewer than 5 permanent employees: By not applying the INA (National Institute of Training) contribution (1.50%), the total social security contributions on wages increase from approximately 25.17% (2025) to 25.33% (2026).
(**) Reference rate used for illustrative purposes. The actual Workers' Compensation premium varies depending on the economic activity and the employer's risk classification.
This adjustment comes from the Reform to the Regulations of the Insurance for Disability, Old Age, and Death (IVM) of the CCSS (Session No. 9038 of 2019), which established gradual increases in contributions to strengthen the sustainability of the pension fund.
1. What is changing in 2026?
The adjustment applies only to the Insurance for Disability, Old Age, and Death (IVM).
In total, contributions to the IVM will increase by 0.32 percentage points, distributed as follows:
- Employer contribution to IVM: Increases from 5.42% to 5.58% → an increase of 0.16 percentage points.
- Employee contribution to IVM: Increases from 4.17% to 4.33% → an increase of 0.16 percentage points.
2. Impact on Total Social Security Contributions
Overall, the change in the IVM is reflected as follows:- For companies (total employer contribution)
- 2025: 26.67%
- 2026: 26.83%
- For employees (total contribution)
- 2025: 10.67%
- 2026: 10.83%
- A slight increase in labor costs for companies.
- A slight reduction in net wages for employees, resulting from the higher IVM contribution.
3. Composition of Social Security Contributions 2025 vs 2026
The distribution of social security contributions is shown below, highlighting that the only item that varies is the IVM (Insurance for Disability, Old Age, and Death).| Employer Contributions | 2025 | 2026 | Δ pp |
| CCSS – SEM (Sickness and Maternity) | 9.25% | 9.25% | 0.00% |
| CCSS – IVM (Disability, Old Age and Death) | 5.42% | 5.58% | 0.16% |
| FODESAF (Family Allowances) | 5.00% | 5.00% | 0.00% |
| IMAS | 0.50% | 0.50% | 0.00% |
| *INA (non-agricultural. ≥ 5 people) | 1.50% | 1.50% | 0.00% |
| Banco Popular (employer contribution via CCSS) | 0.25% | 0.25% | 0.00% |
| LPT – Banco Popular (remaining employer contribution) | 0.25% | 0.25% | 0.00% |
| LPT – FCL (Labor Capitalization Fund) | 1.50% | 1.50% | 0.00% |
| LPT – Fondo Pensiones Compl. (OPC) | 2.00% | 2.00% | 0.00% |
| **INS – Workers’ Risk Insurance | 1.00% | 1.00% | 0.00% |
| TOTAL EMPLOYER CONTRIBUTION | 26.67% | 26.83% | 0.16% |
(*) Non-agricultural employers with fewer than 5 permanent employees: By not applying the INA (National Institute of Training) contribution (1.50%), the total social security contributions on wages increase from approximately 25.17% (2025) to 25.33% (2026).
(**) Reference rate used for illustrative purposes. The actual Workers' Compensation premium varies depending on the economic activity and the employer's risk classification.
| Employee Contributions | 2025 | 2026 | Δ pp |
| CCSS – SEM | 5.50% | 5.50% | 0.00% |
| CCSS – IVM | 4.17% | 4.33% | 0.16% |
| Banco Popular – Employee contribution | 1.00% | 1.00% | 0.00% |
| TOTAL EMPLOYEE CONTRIBUTION | 10.67% | 10.83% | 0.16% |
4. Recommendations for companies
In anticipation of the change taking effect, we suggest:- Review the 2026 payroll budget, incorporating the increase in social security contributions.
- Verify and update payroll system parameters so that the first payment in January 2026 already includes the new IVM rates.
- Communicate the adjustment to employees in advance, explaining the expected impact on deductions and net pay for the first pay period of 2026.
5. How can BDO help you?
At BDO Costa Rica, we offer our expertise in the following services:- Payroll services (Payroll outsourcing): Calculating salaries, social security and tax deductions, bonuses, severance pay, vacation pay, overtime, and payroll-related reports.
- Payroll-related treasury management: Preparing files for employee payments, coordination of social security contributions, as well as policies and obligations related to Workers' Compensation (INS).
- Compliance with social security and labor obligations: Preparing and/or reviewing CCSS payrolls, reconciliation of social security contributions against reported information, and support in fulfilling the requirements from the CCSS and INS.