Starting June 19, 2024, Costa Rica will implement a new insurance regulation aimed at fostering the growth of small and medium-sized enterprises (SMEs). Recently approved, this reform is expected to significantly lower the costs associated with insuring workers and contributions to the Fondo de Bienestar Familiar (FODESAF) for the first four years.

One of the key features of this reform is the introduction of a more equitable calculation for employer contributions. Instead of relying on a fixed minimum amount, contributions will now be based on the actual wages of workers. This change addresses a long-standing issue where many businesses faced higher insurance payments than their employees' actual earnings, making insurance access prohibitively expensive.

In addition, the reform simplifies the enrollment process for small businesses. Companies with fewer than five employees will be automatically enrolled in the new scheme, eliminating the need for complex paperwork and allowing business owners to focus on growth rather than administrative burdens.

This modification represents a significant opportunity for the development of local small businesses, as it aims to reduce operating costs and improve financial viability.

For legal advice in Costa Rica regarding this reform and other labor law-related matters, feel free to reach out. Our team is dedicated to providing the assistance and guidance you need to navigate these changes effectively.