Informality Takes Hold in Costa Rica

Four out of ten companies that operate outside the formal market are more than 15 years old, which reflects the fact that for many of them, informality is not something transitory, but permanent.

Friday, April 20, 2018

A study by the Costa Rican Union of Chambers and Associations of the Private Business Sector (Uccaep) revealed that one of the main reasons why many business units that operate in the informal sector decide to continue doing so is the high cost of social charges.

Nacion.com reports that "...Jorge Araya, deputy executive director of the Uccaep, said that the issue of social charges is the one that most afflicts these types of companies and which helps explain why they remain in this situation. He explained that when the formal sector is consulted about its main cost, they point out that it is the cost of the payroll, influenced by the social charges, whereas when the informal sector is consulted, which is not paying social security, it points to the cost of locally purchased materials."

"... Another result indicated by the study is that 84% of medium and large companies, and 54% of medium and small companies are run by people with higher education or university education; while, among informal businesses, 23% of them are run by people with higher education."

Do you need more information about your business sector?

Request more information:









this site is protected by reCAPTCHA and Google's privacy policy and terms of service.
Need assistance? Contact us
(506) 4001-6423


More on this topic

Honduras: New Law on Social Protection

May 2015

Radical changes will create five regimes: Social Protection Floor, Social Security Prevision, Insurance Health Care, Professional Risk Insurance and Labor Insurance Coverage .

An article on Latribuna.hn reports that "... The new legal framework will take effect in the next 45 days and will give rise to the approval of four special laws that will regulate the scope of these principles. "

New Extension for Payment of Worker-Employer Cuota

May 2013

The Social Security Department in Panama is deferring for four months payments of the employer quotas.

According to Roberto Troncoso, president of the Panamanian Association of Business Executives, the "moratorium by the Social Security Department (CSS by its initials in Spanish) creates a bad habit" among irresponsible employers.

Period of Exemption from Charges Extended

April 2012

The Guatemalan Social Security Institute (IGSS) has granted an additional 90 days exemption from fines for those companies who do not pay employer and employee contributions on time.

The additional period granted by the IGSS began on Sunday, April 1st, under agreement 1284 published by the public record newspaper Diario de Centro América.

Costa Rica: Potential Increase In Social Security Charges

July 2011

Businesses are suggesting putting Social Security Department (CCSS) in order before increasing the compulsory contribution of employers and workers to solve their funding problems.

A press release from the Costa Rican Union of Chambers and Associations of the Private Business Sector (UCCAEP) states:

 close (x)

Receive more news about Employment

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones


Tailor made software for construction companies

O4Bi is a system that allows to control and manage what a company needs: the complete process of development of works, accounts receivable, treasury, banks, sales and accounting.
O4Bi is a very robust system that allows to control and...

Stock Indexes

(Apr 6)
Dow Jones
-5.60%
S&P 500
-5.10%
Nasdaq
-5.64%

Commodities

(May 7)
Brent Crude Oil
67.960
Coffee "C"
153.35
Gold
1,832
Silver
27.565