Jan 5, 2026
Labor Landscape in Costa Rica in 2025
The Costa Rican labor landscape in 2025 was shaped by regulatory adjustments and intense public debate.
Amendment to the Labor Code: Paid Leave for Official Procedures
In October, an amendment to the Labor Code (Article 515) was approved, granting employees paid leave for specific official procedures, such as appearing as witnesses in judicial proceedings, attending personal appointments at the Ministry of Labor, or participating in disciplinary proceedings within the public administration.
To exercise this right, employees must present the corresponding summons and later provide proof of attendance, preventing employers from deducting the day’s pay.
Debate over the 4×3 Workweek Proposal
On the other hand, a flagship proposal for work schedule flexibility, the so-called 4×3 workweek, which would allow employees to work 12-hour days for four days per week, faced strong social opposition.
The bill initially advanced in the Legislative Assembly but encountered more than 2,500 opposing amendments and was ultimately withdrawn by the Executive branch in July 2025, following pressure from labor unions, opposition parties, particularly the Frente Amplio, and warnings about its negative impacts.
Various professional groups, including the College of Therapists, warned that working continuous 12-hour shifts could adversely affect workers’ physical and mental health due to fatigue and reduced rest time.
Wage Adjustments and Minimum Wage Increases
Regarding wages, the National Wage Council approved a general minimum wage increase of only 1.63% for the private sector starting in January 2026. This represents the lowest increase in recent years, driven by low inflation and moderate economic growth.
This modest increase contrasts with the 2.37% adjustment granted for 2025. Although it was agreed upon by government, employers, and workers, it poses challenges for the recovery of purchasing power.
Outlook for 2026
Looking ahead to 2026, continued discussion is expected around labor flexibility versus worker protections. While the 4×3 proposal is currently on hold, the topic may resurface in the future, alongside initiatives aimed at improving job quality and reducing underemployment.