Pension
There is a compulsory insurance scheme for employees in the private and government sectors in Costa Rica. The legal age for retirement is 65 years with pension eligibility if at least 240 contributions have been paid. If not 240, but at least 180 installments have been paid, employees become eligible for a partial pension proportionate to the number of contributions paid relative to 240. There are two types of pensions: Basic Pension and Mandatory Individual Account. The Basic Pension is calculated based on the average of the best 300 monthly salaries of the employee. An annual bonus equal to one month’s salary is also paid in the first year. There are provisions for early retirement with a reduced pension. Mandatory pension is a supplementary pension that depends on the total amount of contributions made by the insured and employer in a pension fund of their choice. The benefit is paid as long as the fund lasts.
There is a non-contributory pension scheme for Costa Ricans above 65 years of age or disabled people under 65 who are not registered with the contributory pensions scheme and are in a state of extreme poverty. The amount of monthly pension is CRC 82,000 (Costa Rican colones).
The contributions for social insurance are paid by employers, employees, and the government.
Dependents/Survivors Benefits
A mandatory social insurance scheme provides benefits to survivors after the death of the insured employee. The benefit applies if the deceased was a pensioner for old age or disability, made at least 180 contributions, and contributed for at least 12 months in the 24 months before death. Their spouse, children, parents, grandparents, and siblings are eligible for benefits.
If the deceased employee had paid at least 12 monthly contributions but was not eligible for a pension, their survivors are entitled to indemnity payment equal to 1 month's salary for each month of contribution. The pensions from the Mandatory Complementary Pension Scheme (ROPC) are also transferred to the survivors in the same manner as the basic pension regime.
Monthly benefits are paid to survivors by the employer for a maximum of 10 years (though premiums are paid to the National Insurance Institute) in case of death due to occupational risk.
Invalidity Benefits
The social insurance scheme in Costa Rica provides insurance benefits for disability to employees who have lost at least 2/3rd of their ability to perform their profession and have contributed at least 180 monthly contributions. There are two types of pensions: basic and mandatory. The Basic Pension is calculated based on the average of the employee's best 300 monthly salaries and the number of contributions made. Mandatory Pension is a supplementary pension that depends on the total amount of contributions made by the insured and the employer. Pension is paid as long as the fund lasts.
There is a non-contributory pension scheme for disabled nationals of Costa Rica who are under 65 years of age, not registered with the contributory pensions scheme, and in a state of extreme poverty. The amount of monthly pension is CRC 82,000 (Costa Rican colones).
Benefits are paid by the employer (through premiums paid to the National Insurance Institute) for disability caused due to occupational risks, depending on the type and degree of disability.