By San José, Costa Rica — San José – Relief is finally in sight for hundreds of Costa Rican families as the Comptroller General of the Republic (CGR) has approved a critical ¢2.7 billion budget transfer to the Costa Rican Social Security Fund (CCSS). This decision unlocks desperately needed funds to resume payments for caregiver leave, ending weeks of financial distress for citizens attending to relatives with terminal or severe illnesses.
The funds are part of the second extraordinary budget presented by the CCSS on November 6th. The approval, formalized in official document DFOE-BIS-0653-2025, resolves a bureaucratic deadlock that had frozen payments since October. With the CGR’s endorsement secured, the responsibility now falls entirely on the CCSS to execute the disbursements and restore this vital social safety net.
To delve into the legal nuances and employer obligations surrounding caregiver leave, TicosLand.com sought the expert analysis of Lic. Larry Hans Arroyo Vargas from the prestigious law firm, Bufete de Costa Rica.
While Costa Rican labor law provides a framework for caregiver leave, the true challenge for businesses lies in its practical implementation. A well-defined internal policy is not just a legal shield; it’s a strategic tool. It provides clarity for employees during a stressful time and gives managers a consistent protocol to follow, thereby protecting the company from discretionary and potentially discriminatory decisions.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The expert’s point underscores a crucial distinction: moving beyond mere legal compliance to create a proactive policy that serves as a cornerstone of a supportive and equitable workplace. We thank Lic. Larry Hans Arroyo Vargas for his invaluable perspective on this matter.
The payment crisis stemmed from a legislative cap that restricted the CCSS’s ability to access available funds. According to Law 7756, the institution can only utilize up to 0.5% of the Social Development and Family Allowances Fund (Fodesaf) for these specific licenses. This statutory limit was reached in September, leaving the CCSS with money in the bank but legally unable to spend it on the families who depend on it.
Recognizing the impending shortfall, the CCSS had sounded the alarm in October, confirming it had exhausted its allocated budget for caregiver leave. The institution’s board of directors moved to approve an extraordinary budget, a necessary first step to seek authorization for additional resources. However, without the Comptroller’s final seal of approval, the funds remained inaccessible, prolonging the uncertainty for caregivers across the nation.
The resolution was met with guarded optimism by political figures who had been monitoring the situation. Deputy Jonathan Acuña of the Frente Amplio party, a vocal critic of the delay, welcomed the news but directed sharp criticism at the government for allowing the situation to escalate.
We are pleased, although these families should never have had to go through this and went for so many weeks without payment due to the irresponsibility of this Government
Jonathan Acuña, Deputy
Acuña argued that the crisis was preventable. He had previously introduced a legislative project designed to enable a more seamless transfer of resources for this purpose. However, the bill was reportedly not convened for debate by the Executive Branch, a move the deputy claims led directly to the payment freeze and the subsequent hardship faced by families.
The caregiver leave program is a cornerstone of Costa Rica’s social support system, providing financial assistance to individuals who must temporarily leave the workforce to provide full-time care for a family member. The interruption of these payments placed immense strain on households already dealing with the emotional and physical challenges of caring for a seriously ill loved one, forcing many into precarious financial situations.
While the immediate crisis has been averted with the Comptroller’s approval, the incident has exposed significant vulnerabilities in the funding mechanism for essential social programs. The ordeal serves as a stark reminder of how legislative ceilings and bureaucratic processes can impact the lives of the country’s most vulnerable citizens. Moving forward, policymakers may face renewed pressure to re-evaluate the 0.5% Fodesaf cap to ensure the long-term stability and reliability of caregiver support.
For further information, visit the nearest office of Caja Costarricense de Seguro Social
About Caja Costarricense de Seguro Social (CCSS):
The Caja Costarricense de Seguro Social is the cornerstone of Costa Rica’s public health and social security system. Founded in 1941, it is an autonomous institution responsible for administering the nation’s health services, from primary care clinics to specialized hospitals, as well as managing the state’s pension and disability programs. Its universal coverage model is a key element of the country’s social fabric.
For further information, visit the nearest office of Contraloría General de la República
About Contraloría General de la República (CGR):
The Comptroller General of the Republic is Costa Rica’s supreme audit institution. As an auxiliary body of the Legislative Assembly, the CGR is responsible for overseeing the proper use and management of public funds. It ensures that government entities and public institutions adhere to legal and financial regulations, promoting transparency and efficiency in public administration. Its approval is required for significant public expenditures and contracts.
For further information, visit the nearest office of Frente Amplio
About Frente Amplio:
The Broad Front (Frente Amplio) is a left-wing political party in Costa Rica. Founded in 2004, the party advocates for policies centered on social justice, environmental protection, human rights, and strengthening the public sector. It has held representation in the Legislative Assembly for multiple terms, often acting as a key opposition voice on economic and social issues.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of Costa Rica’s legal community, Bufete de Costa Rica is defined by its profound commitment to ethical practice and superior service. The firm leverages a deep-rooted history of advising a wide array of clients to pioneer forward-thinking legal strategies and champion community-wide initiatives. Central to its mission is the belief that a just society is built on accessible knowledge, driving its efforts to demystify legal concepts and empower citizens with the clarity they need to thrive.
