Data Sources
3
ILO / WB / OECD coverage
🇨🇷 Americas ·OECD member
Costa Rica
An ILO EPLex composite of 0.179 places Costa Rica among light-protection jurisdictions on the 0-1 scale.
ILO EPLex B-READY 2025 OECD EPL
0.179 ILO EPLex composite (0–1)
Costa Rica's statutory protection against unfair dismissal is light - an ILO EPLex composite of 0.179 on the 0–1 scale, more flexible than 99% of the 95 rated countries. Data is compiled from 3 official sources (ILO EPLex, World Bank B-READY 2025, OECD EPL), covering statutory notice periods, severance pay, and dismissal procedures.
Costa Rica - the verdict
Costa Rica's statutory protection against unfair dismissal is light - an ILO EPLex composite of 0.179 on the 0–1 scale, more flexible than 99% of the 95 rated countries.
- 0.179
- ILO EPLex composite (0–1)
- 99th
- percentile, flexibility
- 0.85/6
- OECD EPL strictness
- 64.0/100
- B-READY labor quality
Sources: ILO EPLex · World Bank B-READY 2025 · OECD EPL. Higher = stronger statutory protection.
How we calculate this percentile
We sort every country with a published ILO EPLex composite score (95 in total) from lowest to highest. Costa Rica's position in that sorted list gives its percentile: round((countries at or below its score ÷ 95) × 100). A higher percentile means stronger statutory dismissal protection relative to the full 95-country set, not a comparison to any single peer country.
Costa Rica has some of the weaker statutory protections against unfair dismissal, scoring just 0.179 on the ILO EPLex composite (2019) - well below the global median. The OECD EPL overall index is 0.85/6.0, ranking #72 of OECD-covered countries. B-READY 2025 labor regulation quality is 64.0/100. Statutory notice rules apply across 7 tenure tiers.
What the Data Shows for Costa Rica
Americas. Covered by 3/3 tracked datasets. As an OECD member, it is included in the OECD's long-running historical EPL series. The most recent ILO EPLex composite score is 0.179 out of 1.0 (2019), summarizing statutory termination rules into a single index. B-READY 2025 labor score: 64.0/100, moderate. The OECD EPL overall strictness index is 0.85/6.0, where higher values indicate stricter rules on individual and collective dismissal.
Statutory notice periods in Costa Rica scale with tenure across 7 tiers, reaching 1 month at 20 years of service. Severance pay can reach 13.33333 months of salary at 20 years, while redundancy-specific pay is 0 months. The maximum probation period allowed by law is 25 months, defining how long employers can assess workers under reduced protection. Dismissal process: slow, ~8.2 weeks. No 3rd-party approval required for individual dismissal.
Labor disputes here resolve relatively quickly, averaging 0.0 months through formal channels. Labor disputes are rare in practice, with only 0.9% of firms surveyed by the World Bank reporting one. Employer social contributions run to a moderate 5.7% of salary on top of wages. The EPLex redress/reinstatement sub-indicator is 0.375/1.0, reflecting how strong remedies are when a dismissal is ruled unlawful. Historically, Costa Rica's OECD EPL score moved from 0.85 in 2014 to 0.85 in 2019, showing the direction of reform over time. 6 peer comparisons below.
How to read the three measurement scales
These figures draw on three different measurement traditions, so read each one on its own terms before comparing across countries. The ILO EPLex composite condenses statutory termination rules into a single index from zero to one, where higher numbers mean stronger legal protection against dismissal. The World Bank Business Ready 2025 labor score runs from zero to one hundred and blends the quality of regulation with how well public services and dispute processes actually work in practice. The OECD employment protection index uses a zero to six scale and only covers member economies, but it offers the longest historical series, which makes it the better choice for tracking reform over time. A country can score strictly on paper yet still process dismissals quickly, so always weigh the statutory index against the practical estimates. Where a country appears in fewer than all three datasets, treat the missing measures as not yet collected rather than as a sign of weak protection, and revisit this page when new releases are published because indicators can shift year over year.
Region
Americas
Geographic grouping
Latest Year
2025
Most recent indicator update
Costa Rica vs. every rated country
Where Costa Rica's ILO EPLex composite sits among all 95 countries with a composite score.
Costa Rica - ILO EPLex composite
Worker-protection strength against unfair dismissal (0–1 scale)
0.18 Top 99% higher than 1% of 95 rated countries
Each bar is a band; taller bars hold more rated countries. The dashed line + filled bar mark this entry. Hover or tap any bar for its full count, share, and where it sits relative to this entry.
Source ILO EPLex composite (0–1 scale) · 2019
Costa Rica EPLex composite 17.9%
Out of a 1.0 maximum. Higher = stronger statutory protection against dismissal.
ILO EPLex (2019)
0.179
out of 1.0 · Rank #95
B-READY 2025
64.0
out of 100 · Rank #64
OECD EPL
0.85
out of 6.0 · Rank #72
ILO EPLex
Termination Protection Breakdown (2019)
Prohibited Grounds for Dismissal 0.500
Probation Period 0.000
Procedural Requirements 0.000
Notice Periods 0.159
Severance Pay 0.200
Redundancy Pay 0.000
Redress / Reinstatement 0.375
Scale: 0 = no protection · 1 = maximum protection. Source: ILO EPLex 2019.
Max probation period: 25 months
Notice Periods by Tenure
| Tenure | Notice Period |
|---|---|
| 6 months | 0.5 months |
| 9 months | 0.5 months |
| 2 years | 1 month |
| 4 years | 1 month |
| 5 years | 1 month |
| 10 years | 1 month |
| 20 years | 1 month |
Source: ILO EPLex ILO EPLex Notice period is the legally mandated advance notice before termination
Severance and Redundancy Pay by Tenure
| Tenure | Severance | Redundancy |
|---|---|---|
| 6 months | 0.4666667 mo | 0 mo |
| 9 months | 0.4666667 mo | 0 mo |
| 2 years | 1.333333 mo | 0 mo |
| 4 years | 2.8 mo | 0 mo |
| 5 years | 3.533333 mo | 0 mo |
| 10 years | 7.166667 mo | 0 mo |
| 20 years | 13.33333 mo | 0 mo |
Values in salary-months. Source: ILO EPLex. Severance = individual dismissal. Redundancy = collective/economic dismissal.
B-READY 2025
Labor Regulation Quality
Regulation Quality
75.1
out of 100
Public Services
73.5
out of 100
Efficiency
43.4
out of 100
Notice Required
Yes
Severance Required
Yes
Weeks to Dismiss
8.2
Weeks Severance
4.7
Firms in Disputes
0.9%
Months to Resolve
0.0
Social Contributions
5.7%
3rd Party for Dismissal
Not required
Source: World Bank Business Ready 2025 World Bank Business Ready 2025 Pillar scores are 0-100 (higher = better regulation quality)
OECD EPL
Historical Protection Score
| Year | Overall Score | Visual |
|---|---|---|
| 2014 | 0.85 | |
| 2015 | 0.85 | |
| 2016 | 0.85 | |
| 2017 | 0.85 | |
| 2018 | 0.85 | |
| 2019 | 0.85 | |
Scale: 0-6 (higher = more protective). Source: OECD Employment Protection Legislation database.
Compare Costa Rica With...
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Understanding EPL Scores How OECD, ILO, and B-READY scores are calculated and compared Termination Laws by Country Notice periods, severance, and dismissal rules worldwide Hiring Internationally Legal frameworks for cross-border employment Non-Compete Agreements Enforceability and restrictions across jurisdictions Reading Employment Statistics How to interpret labor market data and indicators Labor Market Trends Workforce analysis and global employment trends
Frequently Asked Questions
What are the employment protections in Costa Rica?
ILO EPLex termination protection composite score: 0.179/1.0 (2019); World Bank B-READY labor regulation quality: 64.0/100; OECD EPL overall: 0.85/6.0; 7 notice period tiers defined by law; 7 severance/redundancy pay tiers. (3 sources.)
How does Costa Rica compare to the OECD average?
OECD EPL 0.85/6.0 (below the ~2.3 average).
What notice period and severance pay does Costa Rica require?
up to 1 month notice (20 years); severance up to 13.33333 months (20 years); notice mandated; severance mandated.
What data sources cover Costa Rica's employment laws?
3 sources: ILO EPLex; World Bank B-READY 2025; OECD EPL.
How strict are dismissal protections in Costa Rica?
EPLex 2019: relatively flexible (0.179/1.0); max probation 25mo; 3rd-party approval not required; dismissal ~8.2 weeks.
How does Costa Rica handle labor disputes?
disputes resolve in ~0.0mo; 0.9% of firms report one; social contributions 5.7% of salary; EPLex redress indicator 0.375/1.0.
What to do with this
Use Costa Rica's scores as a comparison benchmark, not legal advice.
- Costa Rica sits below 99% of rated countries on statutory dismissal protection (ILO EPLex 0.179/1.0) - see exactly where it lands among all 95. View the rankings
- The three indices measure different things on different scales, compare Costa Rica side by side with another country before drawing a conclusion. Compare Costa Rica
- Read Costa Rica against its regional peers, the Americas averages reveal the structural pattern. Americas overview
These indices reflect the law as written, not how it is enforced, recent amendments, or the facts of any individual case. For a real decision, confirm the current statute and consult a qualified employment lawyer, see our disclaimer.
Related
Data sourced from official OECD, ILO, and World Bank employment-protection datasets. See our methodology for details. Retrieved and formatted by PlainEmploy Editorial
Disclaimer: This information is provided for informational purposes only and does not constitute professional advice. Data is sourced from OECD, ILO, and World Bank labor market databases. Consult a qualified professional before making decisions based on this data.
Read our methodology - how this data is sourced, computed, and verified.
Primary sources: ILO EPLex, World Bank B-READY, OECD EPL.
PlainEmploy is rendered directly from the OECD Employment Protection Legislation indicators, the ILO EPLex database, and the World Bank B-READY labor pillar, no number is typed in by an editor. This country's composite scores and comparisons are computed directly from the underlying OECD/EPLex/B-READY tables, no figure is typed in by an editor. See our editorial standards & corrections policy, the methodology behind these numbers, or report a data error. Data current as of 2026-07-06.