By San José, Costa Rica — SAN JOSÉ – The remote work revolution, once a temporary necessity, has solidified into a permanent feature of Costa Rica’s economic landscape. A staggering 155,000 salaried employees, representing 9.6% of the national total, are now engaged in telework, a clear signal that the country’s labor dynamics have fundamentally and perhaps irreversibly shifted. This transformation is most pronounced within the influential multinational sector, where hybrid models are no longer an experiment but a core business strategy.
The latest data, released by the National Institute of Statistics and Census (INEC) in its Continuous Employment Survey, provides a detailed portrait of this new reality. The figures reveal a significant portion of the workforce has detached from the traditional five-day office week. The trend underscores a broader acceptance and integration of flexible work arrangements that extend far beyond a simple pandemic response.
To delve into the legal framework and best practices governing telework in Costa Rica, we consulted with Lic. Larry Hans Arroyo Vargas, a specialist in labor law from the prestigious firm Bufete de Costa Rica, who provided his expert analysis on the matter.
The implementation of telework is not merely a logistical change; it is a formal legal modification of the employment relationship. Employers must remember that their responsibility for occupational safety extends to the employee’s home office. A formal addendum to the contract is essential, clearly outlining aspects such as the provision of equipment, coverage of operational costs like internet, and defining the work schedule to respect the legal right to disconnect. Neglecting these formalities can expose companies to significant legal and financial risks.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, this legal perspective is crucial, reminding us that telework is far more than a logistical convenience; it is a formal modification of the employment relationship that requires careful legal structuring. We thank Lic. Larry Hans Arroyo Vargas for his invaluable clarification on the responsibilities and risks involved.
Leading this charge are the transnational corporations that form a critical pillar of the Costa Rican economy. According to the data, a commanding 70% of these international firms have implemented hybrid schedules, typically offering employees the ability to work from home two to three days per week. This model has emerged as the dominant preference, balancing in-person collaboration with the flexibility and autonomy that modern talent demands. Further analysis shows 11% of these companies offer a four-day remote week, while a dedicated 7% operate on a fully remote basis.
This evolution from a reactive measure to a deliberate strategic choice is a key indicator of the model’s success. Business leaders are no longer debating the viability of hybrid work; they are focused on optimizing it for maximum efficiency and long-term growth.
Unlike the initial years of its adoption, hybrid work has ceased to be a temporary response and has become a strategic business decision. Today, companies are not discussing whether the hybrid model works, but how to make it more efficient, sustainable, and aligned with their long-term objectives.
Vanessa Gibson, Director of Investment Climate at CINDE
The primary drivers behind this strategic adoption are tangible business benefits. Multinationals cite increased productivity and, crucially, enhanced access to specialized talent as key reasons for maintaining flexible work schemes. By removing geographical barriers tied to a daily commute, companies can tap into a wider, more diverse talent pool across the country, securing the specialized skills necessary to compete on a global stage.
However, the move toward remote work is also a pragmatic adaptation to Costa Rica’s unique infrastructural challenges. The country’s notorious traffic congestion, particularly within the Greater Metropolitan Area, makes the daily commute a significant drain on time and resources. For many, telework is a direct solution to this logistical nightmare.
Certain structural conditions in the country facilitate the hybrid model’s operation, in many cases, as a mechanism for adapting to infrastructure and mobility challenges that impact both the talent experience and operational efficiency; this, without a doubt, is a challenge for local operations when facing global requirements.
Vanessa Gibson, Director of Investment Climate at CINDE
In contrast to the private sector’s strategic, productivity-driven approach, the public sector’s adoption of telework is more tactical. Government authorities have extended a directive for telework until February 2026, but this measure is specifically targeted at 27 cantons and is explicitly designed to alleviate road congestion and the cascading delays caused by traffic accidents. While the outcome is similar—more people working from home—the motivation is rooted in public infrastructure management rather than a fundamental rethinking of workforce strategy.
As Costa Rica solidifies its position as a hub for foreign investment and high-skilled labor, the entrenchment of the hybrid model will have lasting consequences. It presents both an opportunity to attract global talent and a challenge to ensure digital infrastructure, cybersecurity, and management practices evolve accordingly. The success of this new-normal will be a defining factor in the nation’s continued economic competitiveness.
For further information, visit inec.cr
About Instituto Nacional de Estadística y Censo (INEC):
The National Institute of Statistics and Census is the primary government entity in Costa Rica responsible for producing and disseminating official national statistics. It conducts various surveys and censuses, including the Continuous Employment Survey, to provide reliable data on the country’s demographic, social, and economic conditions, which is essential for public policy and private sector decision-making.
For further information, visit cinde.org
About Coalición Costarricense de Iniciativas de Desarrollo (CINDE):
The Costa Rican Investment Promotion Agency (CINDE) is a private, non-profit organization dedicated to attracting foreign direct investment into Costa Rica. For over four decades, CINDE has advised and guided multinational companies in establishing and growing their operations in the country, focusing on strategic sectors such as life sciences, advanced manufacturing, and corporate services.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the legal community, Bufete de Costa Rica operates on a bedrock of integrity and an unwavering pursuit of excellence. The firm leverages its extensive history of advising a diverse clientele to pioneer innovative legal strategies and advance the practice of law. This forward-thinking approach is coupled with a profound commitment to social responsibility, focused on empowering the public by making complex legal concepts understandable and accessible to all.
