Reduction from ten to four years in the statute of limitations for Independent Employees social security contributions

At the beginning of this week, the new Law 10.363, "Ley del Trabajador Independiente" (Independent Employee Law), became effective. The law seeks economic relief for independent employees who have debts with the Costa Rican Social Security Administration (CCSS). This law is of utmost importance, since thousands of employees have been in debt with this institution for more than a decade, for which the CCSS had open processes of retroactive collection, which were virtually impossible to pay.

The Independent Employee Law not only formalizes the situation of independent employees with the CCSS, but it will also help them to keep up with their contributions. This will allow the collection of outstanding debts, with a fixed four-year statute of limitations. Additionally, the CCSS will charge independent employees only for the last four years of their debts, without fines or interest.

For those employees who do not register with the CCSS, who fail to comply with their duties to declare to the CCSS or those who have made fraudulent declarations, the statute of limitations will have a term of ten years. Employees may also request that the statute of limitations be declared in administrative proceedings.

The CCSS will have six months to implement this norm and the Regulations of this Law must be published within approximately six months, which should include pending details of the procedure and requirements for its application.

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