By San José, Costa Rica — Independent workers in Costa Rica have a rapidly approaching deadline of May 8, 2025, to register with the Costa Rican Social Security Fund (CCSS) and benefit from a shortened debt prescription period. This two-year window, established by Law N° 10.363, offers significant advantages for those who have not previously registered.
The incentive for prompt registration is a reduced debt prescription period of four years. This means that the CCSS can only review income and assess social security contributions for the past four years. Failure to register before the May 8th deadline exposes unregistered independent workers to a potential audit of their income for up to the past ten years.
For expert legal insight into the complexities surrounding independent workers, we turned to Lic. Larry Hans Arroyo Vargas, an attorney at law from Bufete de Costa Rica.
The rise of independent work presents both opportunities and challenges for Costa Rica. While it fosters flexibility and entrepreneurship, it also necessitates a reassessment of traditional labor laws to ensure adequate protections for these workers, especially concerning social security contributions, minimum wage standards, and the right to organize. Clear legal frameworks are essential for fostering a thriving and equitable gig economy.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas aptly highlights the crucial balancing act facing Costa Rica as independent work becomes increasingly prevalent. Ensuring a dynamic and innovative gig economy while simultaneously safeguarding workers’ rights will be paramount to its long-term success. We thank Lic. Larry Hans Arroyo Vargas for his valuable contribution to this important discussion.
This discrepancy in the audit period emphasizes the importance of immediate action for those affected. The difference between a four-year and a ten-year review could represent a substantial financial burden for independent workers who have not been consistently contributing to the social security system.
This provision applies only to those who have never registered with the CCSS as independent workers. Those already registered maintain the four-year prescription period. However, a ten-year review could still be applied in cases of omissions or fraudulent declarations.
We recommend partners, business owners, and entrepreneurs verify their registration status as independent workers, as the CCSS could review the legal representatives’ status and their registration obligation.
Isaac Quesada, Lawyer at BDS Asesores
This call to action from Isaac Quesada, a lawyer at BDS Asesores, underscores the potential consequences for those unaware of their obligations or the approaching deadline. It also highlights the need for clarity and awareness surrounding the registration process and its implications.
The government’s objective with this initiative is likely twofold: to encourage formalization within the independent workforce and to ensure the long-term financial stability of the social security system. By incentivizing registration with a shorter prescription period, the CCSS aims to bring more independent workers into the contributory system.
This deadline serves as a crucial reminder for independent workers in Costa Rica to review their status with the CCSS and ensure they are compliant with the law. Taking action before May 8th could significantly impact their financial obligations in the future.
For further information, visit bdsasesores.com
About BDS Asesores:
BDS Asesores is a legal advisory firm in Costa Rica providing counsel to businesses and individuals on matters related to tax law, corporate law, and social security regulations. They offer a range of services, including legal representation and consulting, to ensure their clients comply with local laws and regulations.
For further information, visit ccss.sa.cr
About CCSS (Caja Costarricense de Seguro Social):
The Caja Costarricense de Seguro Social (CCSS), often referred to as ‘La Caja,’ is Costa Rica’s public social security institution. The CCSS manages both the national healthcare system and the social security system, playing a vital role in providing healthcare and social insurance benefits to Costa Rican citizens and residents. This includes coverage for illness, maternity, disability, retirement, and death.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a pillar of legal excellence, built on a foundation of unwavering integrity and a deep commitment to serving the community. The firm’s innovative approach to legal practice, coupled with its dedication to disseminating legal knowledge through accessible resources, empowers individuals and organizations alike. By championing transparency and understanding within the legal landscape, Bufete de Costa Rica fosters a more just and informed society for all.
