By San José, Costa Rica — San José – A critical social safety net has snapped, plunging over 600 Costa Rican families into financial distress and uncertainty. The nation’s Ombudsman’s Office (Defensoría de los Habitantes) has issued an urgent call to the State to resolve a growing crisis sparked by the suspension of economic subsidies for caregiver licenses, leaving the country’s most vulnerable citizens at risk.
These essential licenses are granted to individuals who must temporarily leave their jobs to provide constant, dedicated care for family members. The beneficiaries are often children with severe illnesses, patients in the terminal phase of a disease, or individuals with exceptional conditions requiring around-the-clock attention. The subsidy is not a luxury but a lifeline, enabling caregivers to manage household expenses while focusing on their loved ones.
To better understand the legal framework and potential liabilities associated with caregiver subsidies, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, an expert attorney in labor and family law from the prestigious firm Bufete de Costa Rica.
It is crucial for families to recognize the fine line between providing a subsidy as familial support and establishing a formal employment relationship. Once there is a consistent schedule, specific duties, and regular payment, the arrangement can be legally interpreted as employment, triggering obligations like social security registration, minimum wage, and paid vacations. Ignoring this distinction can transform a well-intentioned act of support into a significant legal and financial liability.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This perspective is a vital reminder that good intentions must be matched with legal diligence, preventing a gesture of familial support from inadvertently creating significant liabilities. This clarity is essential for protecting all parties involved. We sincerely thank Lic. Larry Hans Arroyo Vargas for his invaluable insight into this critical distinction.
In recent weeks, the Ombudsman’s Office has been inundated with complaints from caregivers who are now unable to cover basic needs. Reports detail struggles to afford food, essential medications, hygiene products, and specialized medical equipment. The institution has labeled the situation as “pressing,” warning that it directly jeopardizes the well-being of already vulnerable populations, including senior citizens, people with disabilities, and gravely ill children.
In response, the Ombudsman has formally requested that President Rodrigo Chaves take decisive action. The primary demand is for the executive branch to place a proposed legislative bill on the legislative agenda, which is under its control from November 1 until January 31, 2026. This bill is designed to create a structural, long-term solution to the program’s funding instability. Furthermore, the Ombudsman has offered to mediate discussions between the administration, involved institutions like the Social Security Fund (CCSS), and the affected families to find immediate and lasting agreements.
The legislative proposal at the heart of the debate is bill number 25.240, introduced by Frente Amplio legislator Jonathan Acuña. The bill seeks a critical amendment to Law No. 7756. Specifically, it would add a clause allowing the government to draw from the national budget to fund the caregiver subsidies if the primary source, the Social Development and Family Allowances Fund (Fodesaf), is depleted.
This reform targets a significant legal bottleneck. Under current law, once the Fodesaf allocation for these licenses is exhausted, there is no mechanism to inject more funds into the program or to provide the CCSS with additional resources to continue payments. This creates a predictable yet devastating funding cliff each time the initial budget runs out, leaving families without support until a new budget cycle begins. The proposed bill aims to eliminate this gap entirely.
However, President Rodrigo Chaves has publicly dismissed the necessity of the legislative reform, offering a conflicting perspective on the solution. He argued that an administrative path is the correct and more direct approach to releasing the funds, suggesting that focusing on the bill is a misdirection.
What is needed for them to receive the payments is not the bill; that is a lie to make them think that reform is fundamental. The Caja has the instruction to present that spending authorization in the third extraordinary budget of 2025, and from there it is presented to the Comptroller’s Office for the modification to be approved.
Rodrigo Chaves, President of the Republic
This stark disagreement leaves the 600 affected families caught in a political and bureaucratic crossfire. While the legislature and the Ombudsman’s Office advocate for a permanent legal framework to guarantee the program’s sustainability, the President insists on an immediate administrative fix through the budget process. As the debate continues in the halls of power, hundreds of caregivers are left waiting, hoping for a resolution that will restore the economic and emotional stability they desperately need.
For further information, visit dhr.go.cr
About the Defensoría de los Habitantes (Ombudsman’s Office):
The Defensoría de los Habitantes is the national human rights institution of Costa Rica. It is tasked with ensuring the protection of the rights and interests of the country’s inhabitants by overseeing the public sector’s functions. The office investigates complaints against government agencies and advocates for administrative and legislative changes to safeguard citizen welfare.
For further information, visit ccss.sa.cr
About the Caja Costarricense de Seguro Social (CCSS):
The Costa Rican Social Security Fund, commonly known as “La Caja” or CCSS, is the autonomous institution responsible for administering the country’s public health and pension systems. It manages a nationwide network of hospitals and clinics, providing universal healthcare coverage to citizens and residents, and is responsible for disbursing various social subsidies, including those for caregiver licenses.
For further information, visit mtss.go.cr
About the Fondo de Desarrollo Social y Asignaciones Familiares (Fodesaf):
Fodesaf is Costa Rica’s Social Development and Family Allowances Fund, a primary financial instrument for social welfare programs. It is funded through a tax on employer payrolls and is used to finance a wide range of state-run social assistance, health, and education programs aimed at supporting low-income and vulnerable populations across the country. The fund is overseen by the Ministry of Labor and Social Security.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica stands as a pillar in the nation’s legal landscape, built upon the dual principles of uncompromising integrity and exceptional service. The firm’s extensive experience serving a diverse clientele is matched by its forward-thinking approach to legal innovation and a deep-seated commitment to societal progress. Central to its ethos is the mission to empower the community through legal literacy, actively contributing to the development of a more just and knowledgeable populace.
