GENERAL INFORMATION ON COSTA RICAN LEGISLATION. 

Government Regulators. 

Key Regulators: 

• Costa Rican Social Security Fund (CCSS) 
• National Insurance Institute (INS) 
• Ministry of Finance 
• Ministry of Labour and Social Security 

Labour Legislation and Social Security 

• The legislation is governed by the Ministry of Labour and Social Security (MTSS). 
• Employers must register workers in the social security system from the beginning of the employment relationship. 
• Social security is funded by the government, employers, and workers: 
• Worker's contribution: 10.67% of gross salary. 
• Employer contribution: 26.67%. 

Employment Contracts 

• There are fixed-term and  indefinite contracts. 
• The Labor Code establishes that the employer must insure employees against occupational risks through a policy with the INS. 

Deductions and Taxes 

• Employees are subject to withholding of salary income to pay income tax, applicable only to those who exceed the exempt minimum. 
• Unemployment benefit is paid if the contract is terminated without just cause, with compensation based on seniority (up to 8 years). 

Employment Benefits 

• Aguinaldo: It is equivalent to one month's salary, is paid in December and is exempt from income tax. 
• Vacations: Two weeks for every 50 weeks worked. 
• Overtime: They are paid at 1.5 times the ordinary salary. 

Holidays and Leaves 

• Costa Rica has 11 official holidays, although some are not mandatory. 
• Medical leave: The first three days are paid 50% by the employer, then 60% by the CCSS. 
• Maternity: Four months with shared payment between the employer and the CCSS. 

Data Privacy 

• Since 2011, Law No. 8968 regulates the protection of personal data in Costa Rica. 
• The Agency for the Protection of Inhabitants' Data (PRODHAB) was created  to ensure compliance. 

 

GENERAL INFORMATION ON PANAMANIAN LEGISLATION. 

Government Regulators. 

• Ministry of Labor and Labor Development (MITRADEL): Regulates labor relations and conflicts. 
• Social Security Fund (CSS): Manages social security and health, pension and maternity benefits. 
• Ministry of Economy and Finance: Manages economic policies and administration of government resources. 
• General Directorate of Revenue (DGI): Administers the tax system and combats tax evasion. 

Labour Legislation and Social Security 

• The CSS covers pension, disability, survivorship, sickness and maternity plans. 
• The contributions to social security are: 
• Employee: 9.75% 
• Employer: 14.65% 
• In the payment of the thirteenth month, the contributions are reduced to 7.25% (worker) and 10.75% (employer). 

Employment Contracts 

Types of contract: 

• Defined: With a specific end date. 
• Indefinite: No end date. 
• For specific work: For specific projects or services. 

Termination of the contract: 

• Termination without just cause gives the right to compensation: 
• 1 month's salary for the first 3 years. 
• 20 days per year between the 4th and 6th year (maximum 5 months' salary). 

Deductions and Taxes 

• Educational Insurance: 1.5% (employer) and 1.25% (employee). 
• Income tax: 
• Less than $11,000 annually: Exempt. 
• From USD 11,000 to 50,000: 15% on the excess. 
• More than USD 50,000: 25% on the surplus. 

Employment Benefits 

• Thirteenth month: Mandatory payment in three parts per year (April, August and December). 
• Vacation: 30 days after 11 months of continuous work. 
• Overtime: 
• 25% surcharge during the day. 
• 50% at night or mixed. 

Holidays and Leaves 

• Panama has 11 national holidays, such as November 3 (Colombian Independence) and November 28 (Spanish Independence). 
• Medical leave: 70% covered by the CSS after the first 3 days. 
• Maternity: 14 weeks paid by the CSS. 

Data Privacy 

• Law No. 787 protects personal data in public and private files. 
• The collection of data is regulated under the principles of necessity, proportionality and lawfulness 

 

Government Regulators. 

• Guatemalan Labor Code: Regulates the labor relationship. 
• Ministry of Labor and Social Welfare: Administers labor policy. 
• Superintendence of Tax Administration (SAT): Manages taxes and withholdings. 

Labour Legislation and Social Security 

• The unemployment rate in the country is 2.2%, one of the lowest in Latin America. 
• The contributions to social security are: 
• Employee: 4.83%. 
• Employer: 12.67%. 
• All workers must be affiliated with the Guatemalan Social Security Institute (IGSS). 

Employment Contracts 

Types of contract: 

• Indefinite: It does not have an end date. 
• Fixed term: It has a deadline or is conditioned to a specific event. 
• For specific work: Ends when the contracted work is completed. 

Deductions and Taxes 

Income Tax (ISR): 

• Up to GTQ 300,000 annually: 5%. 
• Over GTQ 300,000: 7%. 
• Boleto de Ornato: A mandatory municipal tax for people between 18 and 65 years old. 

Employment Benefits 

• Bonus: Equivalent to one month's salary, paid in December. 
• Annual bonus: An additional salary paid in July (Decree 42-92). 
• Bonus-incentive: GTQ 250 per month to increase productivity. 
• Vacation: 15 working days after one continuous year of work. 

Holidays and Leaves 

Guatemala has 14 national holidays, including: 

• Independence Day (September 15). 
• Army Day (June 30). 
• Christmas (December 25). 
• Medical leave: Covered by the IGSS after the first three days of disability. 

Data Privacy 

•  Initiative 4090-2009 regulates the protection of personal data. 
• It guarantees the right to informational self-determination and punishes the misuse of private data 

HONDURAS 

Government Regulators. 

• Ministry of Labor and Social Welfare: Supervises compliance with labor legislation. 
• Honduran Social Security Institute (IHSS): Administers social security and health benefits. 

Labour Legislation and Social Security 

Social security contributions: 

• Employee: 3.5% of salary. 
• Employer: 7% of the salary. 
• Contributions are made for Disability, Old Age and Death (IVM) and Sickness and Maternity (EM). 

Employment Contracts 

Types of contract: 

• Indefinite: It does not have an end date. 
• Defined: The date of completion or completion of a work is specified. 
• For specific work: Ends with the conclusion of a project. 

Deductions and Taxes 

• Minimum wage: Between HNL 7,408 and HNL 14,347 per month, depending on the sector and size of the company. 
• Salary adjustments: Depending on the number of employees: 
• 1 to 10 employees: 5.32%. 
• More than 151 employees: 7.50%. 

Employment Benefits 

• Bonus: One month's salary, paid in December. 
• Fourteenth month: An additional salary paid in June. 
• Vacation: 10 working days after one year of continuous work. 

Overtime: 

• 25% surcharge during the day. 
• 50% at night. 

Holidays and Leaves 

Honduras has 11 national holidays, including: 

• Independence Day (September 15). 
• Labor Day (May 1). 
• Christmas (December 25). 
• Medical leave: 2.5% of the worker's contribution, 5% of the employer. 
• Maternity: Benefit covered by social security. 

Data Privacy 

• Honduras is working on its Personal Data Protection Law, seeking to guarantee privacy and the right to informational self-determination 

Government Regulators. 

• Labor Code of the Republic of El Salvador. 
• Ministry of Labor and Social Welfare: Supervises compliance with labor legislation. 

Labour Legislation and Social Security 

• Social security is administered by the Salvadoran Social Security Institute (ISSS). 
• Social security contributions: 
• Employee: 3% of salary. 
• Employer: 16.25% of the salary. 

Employment Contracts 

Types of contract: 

• Indefinite: It does not have an end date. 
• Defined: Has a specific deadline or condition. 
• For specific work: Ends when the assigned work is completed. 

Termination of the contract: 

• In case of voluntary resignation, workers with more than 2 years of service receive 15 days' salary per year worked. 

Deductions and Taxes 

Income Tax (ISR): 

• Up to USD 472.01 per month: Exempt. 
• Between USD 472.01 and 895.24: 10%. 
• More than USD 895.24: Between 20% and 30%. 
• Value Added Tax (VAT): 13%, paid by consumers. 

Employment Benefits 

• Bonus: It is paid in December and varies according to seniority: 
• Less than 3 years: 15 days' salary. 
• 3 to 10 years: 19 days' salary. 
• More than 10 years: 21 days' salary. 
• Vacation: 15 working days after one year of continuous work, with an additional payment of 30% of the ordinary salary. 

Overtime: 

• 100% additional on top of the ordinary rate. 

Holidays and Leaves 

10 national holidays, including: 

• Labor Day (May 1). 
• Fiestas Agostinas (first days of August). 
• Independence (September 15). 
• Christmas (December 25). 
• Medical leave: Covered by the ISSS after the first 3 days. 
• Maternity: 12 weeks paid. 

Data Privacy 

• In 2021, the Organic Law on the Protection of Personal Data was enacted, guaranteeing the right to informational self-determination 

Government Regulators. 

• Nicaraguan Social Security Institute (INSS). 
• National Technological Institute (INATEC). 
• Ministry of Labor of Nicaragua. 

Labour Legislation and Social Security 

Social security contributions: 

• Employee: 7% of salary. 
• Employer: 21.5% (for companies with less than 50 workers) and 22.5% (for companies with more than 50 workers). 
• INATEC contribution: 2% of the total payroll. 

Employment Contracts 

Types of contract: 

• Indefinite: No end date. 
• Defined: Has a specific deadline or condition. 
• For specific work: Ends with the conclusion of the established task. 

Deductions and Taxes 

Income Tax (ISR): 

• Up to C$100,000 annually: Exempt. 
• From C$100,000.01 to C$200,000: 15%. 
• From C$200,000.01 to C$350,000: 20%. 
• From C$350,000.01 to C$500,000: 25%. 
• More than C$500,000: 30%. 

Employment Benefits 

• Aguinaldo: Mandatory payment of one month's salary after one year of continuous work, known as the thirteenth month. 
• Vacation: 15 working days after 6 months of continuous work. 
• Overtime: Paid at an additional 100% on top of the normal rate. 

Holidays and Leaves 

Nicaragua has 10 national holidays, including: 

• Labor Day (May 1). 
• Independence Day (September 14 and 15). 
• Christmas (December 25). 
• Medical leave: Covered by the INSS after the first days of disability. 

Data Privacy 

• Nicaragua does not have a specific law on the protection of personal data, but general regulations apply in labor contracts