worker's compensation

BACKGROUND

Costa Rican labour law says employers must protect their employees in 2 ways: with (1) Social Security (“La Caja”), which covers sickness, pregnancy, and non work-related accidents for the employee and his/her dependants, and; (2) Workers’ Compensation, which is paid by the employer, and covers work-related accidents. If an employer fails to protect his employees, he is responsible for any events which otherwise would have been covered.

Workers’ Compensation is provided by INS. It comes in two forms: “normal” Workers’ Compensation (Riesgos del Trabajo, or RT), and Domestic Workers’ Compensation (Riesgos del Trabajo - Hogar, or RTH), which is a special cheaper version where the red tape is less.

“NORMAL” WORKERS’ COMPENSATION. (RT) 

To obtain coverage, the employer must sign an application, and provide a copy of his ID. If the employer is a corporation, INS also requires a copy of the “cédula juridical” and of the signer’s power-of-attorney (“personería.) Also, the employees’ names, ID numbers, rates of wages, and job descriptions (one word: e.g. guard, clerk, electrician, etc.) INS will determine, according to the perceived risk, what percentage of the payroll must be paid – it is usually around 2-3% of payroll per year, paid in advance, normally by month. The employer must keep INS informed of hirings, firings, and other relevant personnel information, and send INS all payroll information on a monthly basis. Due to the detailed reporting requirements, it is best for employers to handle RT directly with the most conveniently situated INS office.

DOMESTIC WORKERS’ COMPENSATION. (RTH)

INS provides two standard policy options. If your domestic arrangements do not conform to either, you should buy a “normal” Workers’ Compensation policy. The RTH policy can cover foreign workers, whether or not they are legal immigrants. The options are:

1. One domestic employee (maid, servant, cook, housekeeper, etc. – but not a guard or driver) up to full-time, plus (optionally) one other person (gardener, odd-job person, etc.) for up to 5 days per month. Yearly cost, C.18,589
2. Two domestic employees up to full-time, plus one other person for up to 5 days per month. Yearly cost: C.33,410

To obtain coverage, the employer must sign an application form and provide a copy of his/her ID. You must provide the full-time employees’ name(s) and ID number(s). Data of the part-time person is not needed. If you change employee(s), INS must be advised by means of a letter, with the name(s) and ID number(s) of the incumbent(s). The cover becomes effective when the premium is paid.

ACCIDENTS

A form “Orden de Atención Médica” must be completed and signed by the employer. If the accident is serious, call 911 for an ambulance. If not serious, send the employee (with the form) to the INS clinic near Hospital Mexico.

Rev.05/08