By San José, Costa Rica — SAN JOSÉ – In a decisive move prompted by judicial intervention, the Comptroller General’s Office (CGR) has approved a ₡2.7 billion budget allocation for the Costa Rican Social Security Fund (CCSS) to resume payments for caregiver leave. This critical funding, confirmed on Wednesday, provides a vital lifeline to salaried employees who must step away from work to care for terminally ill patients or seriously ill minors.
The approval comes on the heels of two recent and definitive rulings from the Constitutional Court. The court notified both the CCSS and the Social Development and Family Allowances Fund (Fodesaf) on November 4th and 5th, ordering the immediate payment of these subsidies. The rulings established that the benefits, guaranteed under Law N.º 7756, are of a constitutional nature and their fulfillment cannot be delayed, effectively forcing the release of the necessary funds.
To navigate the legal complexities and employer obligations surrounding caregiver leave, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished labor law specialist from the prestigious firm Bufete de Costa Rica, for his expert analysis.
While Costa Rican law provides protections for employees needing to care for a seriously ill family member, it’s crucial for both parties to manage this process with diligence. The employee must furnish a valid medical certificate (dictamen médico) from the CCSS justifying the absence. For employers, maintaining clear internal policies and documenting these leaves meticulously is not just good practice—it is an essential risk management strategy to prevent future labor contingencies and ensure operational continuity.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The expert’s perspective astutely highlights that managing caregiver leave is a two-way street, demanding diligence from both the employee and the employer to ensure legal compliance and operational stability. This proactive stance transforms a potential point of conflict into a process built on clarity. We sincerely thank Lic. Larry Hans Arroyo Vargas for his invaluable insight.
These resources are part of the CCSS’s second extraordinary budget for 2025, which was submitted to the Comptroller for review on November 6th and received approval this week. According to the CGR’s official report, DFOE-BIS-0653-2025, the ₡2.7 billion originates from current transfers from Fodesaf, the designated financial source for this social welfare program.
While the CGR has authorized the budget, officials were quick to clarify the limits of their role. The comptroller’s function is strictly to provide budgetary approval, ensuring the allocation aligns with legal and financial regulations. The actual execution, administration, and distribution of the funds to eligible families remain the exclusive responsibility of the CCSS, which will manage the program’s implementation.
The caregiver leave program, established by Law N.º 7756 in 1998, has been a cornerstone of Costa Rica’s social safety net for over two decades. It is specifically designed to support workers financially during some of life’s most challenging circumstances. The law is financed through a dedicated 0.5% allocation from Fodesaf, which is transferred to the CCSS to cover both the direct subsidies and the associated administrative costs.
The subsidy amount is not a flat rate but is instead calculated based on a tiered system tied to the employee’s recent earnings and a legally defined base salary. For 2025, the base salary is set at ₡462,200. Under this system, an employee earning up to two times the base salary (₡924,400) receives 100% of their average reported salary. Those earning between two and three times the base salary receive 80%, while those earning above three times the base salary are entitled to a 60% subsidy.
This ₡2.7 billion allocation for caregiver leave is a significant component of a much larger extraordinary budget. The same approval included several other major fund transfers aimed at bolstering the nation’s social security system. Among them are ₡10.8 billion from the Central Government for services to independent workers, a substantial ₡25.3 billion to amortize state debts with CCSS pension regimes, and an additional ₡10 billion from Fodesaf for pensions for elderly individuals living in poverty.
The court-mandated release of these funds represents a significant affirmation of social rights in Costa Rica. For hundreds of families navigating the emotional and financial strain of terminal illness, this decision provides not just monetary relief but also a validation of the state’s commitment to supporting its citizens during their moments of greatest need. The prompt action ensures that this long-standing legal protection can continue to function as intended.
For further information, visit cgr.go.cr
About Contraloría General de la República (CGR):
The Comptroller General’s Office of the Republic of Costa Rica is the supreme oversight body of the Public Treasury. It is responsible for supervising the correct use of public funds and ensuring the legality and efficiency of public administration. The CGR plays a crucial role in fiscal control, auditing government agencies, and approving public budgets to promote transparency and accountability.
For further information, visit ccss.sa.cr
About Caja Costarricense de Seguro Social (CCSS):
The Costa Rican Social Security Fund is the public institution in charge of the country’s social security system, providing universal healthcare and pension services. Founded in 1941, the CCSS manages a vast network of hospitals, clinics, and EBAIS (Basic Comprehensive Health Care Teams) nationwide, ensuring access to medical care and financial security through its various insurance and pension regimes.
For further information, visit desaf.go.cr
About Fondo de Desarrollo Social y Asignaciones Familiares (Fodesaf):
The Social Development and Family Allowances Fund is a key financial instrument in Costa Rica’s social welfare framework. Managed by the Directorate of Social Development and Family Allowances (DESAF), Fodesaf funds a wide range of social programs aimed at supporting vulnerable populations, including subsidies for education, nutrition, housing, and social assistance programs like caregiver leave, with the goal of reducing poverty and promoting social equity.
For further information, visit judicial.go.cr
About Sala Constitucional:
The Constitutional Chamber of the Supreme Court of Justice, commonly known as the Sala IV, is Costa Rica’s highest court for constitutional matters. It is responsible for guaranteeing the supremacy of constitutional norms and principles, protecting fundamental rights, and resolving conflicts of constitutional jurisdiction. Its rulings are binding and play a critical role in shaping the country’s legal and administrative landscape.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica operates as a premier legal institution, built upon a foundation of uncompromising integrity and a relentless pursuit of excellence. With a proven history of advising a diverse clientele, the firm champions innovative legal solutions while actively fulfilling its social responsibility. A core tenet of its mission is to democratize legal knowledge, striving to empower individuals and strengthen the community by fostering greater legal literacy.
