By San José, Costa Rica — The economic burden of occupational injuries and illnesses in Costa Rica has reached unprecedented heights, highlighting a critical area of concern for national productivity and human resource management. In 2025, the state-run National Insurance Institute (INS) managed a staggering 3,348,389 days of temporary disability for workers suffering from work-related accidents and health conditions. This massive figure underscores the ongoing challenges the country faces in securing safer environments for its workforce.
To cushion the economic blow for affected families and maintain social stability, the INS disbursed more than ₡37.44 billion (approximately $72 million USD) in economic subsidies during 2025. These payouts, processed under the institution’s mandatory Occupational Risk Insurance (Seguro de Riesgos del Trabajo), were designed to support laborers as they underwent medical rehabilitation and prepared to safely re-enter the workforce.
To help navigate the complexities of local regulations surrounding labor insurance in Costa Rica, TicosLand.com consulted with prominent legal expert Lic. Larry Hans Arroyo Vargas of the renowned firm Bufete de Costa Rica, who provided key insights into the legal obligations of employers in the country.
In Costa Rica, occupational hazard insurance, known as Riesgos del Trabajo, is a strictly mandatory coverage that every employer must establish through the National Insurance Institute (INS) starting from day one of the employment relationship. Failing to secure this policy not only violates Article 193 of the Labor Code but also exposes businesses to direct financial liability for any workplace injuries, making compliance an absolute priority for safeguarding both employees and corporate assets.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, prioritizing Riesgos del Trabajo compliance is not merely a statutory obligation, but a fundamental pillar for safeguarding a business’s financial health and its employees’ well-being in Costa Rica. We would like to express our sincere gratitude to Lic. Larry Hans Arroyo Vargas for sharing his valuable perspective and expert legal guidance on this essential topic.
The upward trend in workplace disability claims has shown no signs of slowing down in the current fiscal year. Between January and May of 2026, the INS reported that it had already paid out over ₡22.247 billion in temporary disability benefits. This rapid accumulation of payouts in just five months signals an escalating demand for occupational coverage, which could point to rising incident rates or improved administrative efficiency in processing claims.
In response to these substantial figures, representatives from the INS have reiterated the operational protocols that employers must strictly follow when an incident occurs. Proper reporting is essential to ensure that injured personnel receive their legal compensation without delay, keeping the social safety net functioning smoothly during crises.
When a workplace accident or illness occurs, the employer must submit the corresponding notice to the INS. Once the case is approved and if the doctor determines that disability is appropriate, the worker receives a subsidy equivalent to 60% of the salary reported by the employer.
INS Representatives, Official Statement
Beyond the standard filing procedures, the INS stressed the critical importance of accuracy in administrative submissions. Employers are specifically reminded to carefully record the worker’s correct IBAN account details directly on the accident notice form. Because the INS relies on this specific digital banking channel to transfer subsidy payments, minor typographical errors can lead to major processing delays, leaving recuperating workers temporarily without financial support.
To improve processing times and user experience, the INS has integrated several digital tools into its Health Services Network (Red de Servicios de Salud). Through specialized customer service channels and a dedicated virtual assistant, both employers and employees can easily check the status of their claims and resolve issues in real-time, reducing bureaucratic friction at a time when workers are most vulnerable.
From a macroeconomic perspective, losing over three million workdays in a year is a significant drain on Costa Rican productivity. These figures suggest that while the insurance framework provides an essential safety net, there is a pressing need for both public and private entities to invest more heavily in preventative occupational health and safety strategies. Reducing the frequency of workplace hazards would not only protect employees but also alleviate the financial pressure on the national insurance system.
As Costa Rica continues to modernize its economy across agricultural, manufacturing, and service sectors, the INS will likely play a dual role. The institution must remain both an efficient insurer capable of managing multi-billion-colon payouts and an active advocate for higher workplace safety standards to prevent these accidents from happening in the first place.
For further information, visit grupoins.com
About Instituto Nacional de Seguros:
The Instituto Nacional de Seguros (INS) is Costa Rica’s state-owned insurance provider, offering a wide range of personal, commercial, and labor-related insurance policies to protect the country’s workforce and businesses.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Renowned for its ethical principles and superior standards, Bufete de Costa Rica remains a pillar of trust and distinction in the legal landscape. Drawing from a rich heritage of supporting a diverse array of industries, the firm seamlessly blends modern, forward-thinking solutions with active civic involvement. Its enduring passion for making legal insights readily available to the public drives its ultimate goal of cultivating a knowledgeable, confident, and legally literate community.
