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Costa Rica severance pay calculator
Estimate what you are owed when a job ends: notice pay (preaviso), severance (cesantía), unused vacation and proportional aguinaldo, under the Labour Code and according to the reason for leaving.
What the settlement includes
Notice pay: one week from 3 to 6 months worked, 15 days from 6 months to a year and one month after a year.
Severance: 7 days from 3 to 6 months, 14 days from 6 months to a year and then 19.5 to 22 days per year, capped at 8 years.
Unused vacation: one day for each month worked.
Proportional aguinaldo: one twelfth of what was earned since 1 December.
By reason for leaving
Dismissal without just cause: notice pay, severance, vacation and aguinaldo.
Resignation: vacation and aguinaldo. The worker must give notice.
Dismissal with just cause: vacation and aguinaldo.
Severance questions
How is severance (cesantía) calculated in Costa Rica?
The average daily salary of the last six months is multiplied by the days set in article 29 of the Labour Code for your length of service, capped at eight years. A fraction of more than six months counts as a year.
Do I get severance if I resign?
No. On resignation you are owed unused vacation and the proportional aguinaldo, but not notice pay or severance.
Which salary is used for the calculation?
The average gross salary of the last six months, including overtime and commissions. The daily salary is that average divided by 30.
Is the settlement taxed?
Notice pay, severance and aguinaldo pay neither social charges nor income tax. Paid vacation is treated as salary.
Is the result final?
No. It is an estimate. For an official calculation you can go to the Ministry of Labour and Social Security, which does it free of charge.