March 22, 2022
Back

Costa Rica: New law encourages employability of people over 45 years of age - JD Supra

Companies established in Costa Rica have now more inducements to recruit the experience, knowledge, and skills of people over 45 years old. This is possible thanks to the recent entry into force of the Law to Promote Employment Opportunities for People over 45, Law 10.079.

This legislation establishes several incentives that apply to companies whose payroll has at least 10% of people over 45 years old. Some of the incentives are:

Reduction in payment of employer’s social security contributions Instead of 5%, 4% will be paid on the total salary amounts reported monthly to those employees over 45 years old. Instead of 5%, 3% will be paid on the total salary amounts reported monthly to those employees over 45 years old.
Income tax deduction (*) A deduction of 5% will be applied to the income tax. A deduction of 7% will be applied to the income tax.

(*) This deduction will apply after determining the amount to be paid for income tax, provided that these new hires are for more than one continuous year of work.

It is necessary to consider that, for these benefits to be granted, the following must be met:

  • That the reference percentage of personnel over 45 years old is based on new hires done after the entry into force of Law 10.079 (entered into force on January 25, 2022).
  • That the General Directorate of Social Development and Family Welfare (DESAF) issues first a technical impact study on the Fund for Social Development and Family Welfare (FODESAF).

This law expressly recognizes that the preference of people over 45 years old in recruitment and selection processes will not be considered discrimination.

Law 10.079 is valid for four years, counted as of its date of publication.



source: https://www.jdsupra.com/legalnews/costa-rica-new-law-encourages-7480779/

Your content is great. However, if any of the content contained herein violates any rights of yours, including those of copyright, please contact us immediately by e-mail at media[@]kissrpr.com.