The majority of the Board of Directors of the Costa Rican Social Security Administration (CCSS) approved the amendment

The reform to the Minimum Contribution Base (BMC) for the health and pension sector was published in the Official Gazette on September 7. This amendment contemplates article 63 of the Health Insurance Regulations, and articles 2 and 34 of the Disability, Old Age and Death Insurance Regulations.

The article 63 of the Health Insurance Regulations provided that the amount of the reported salary could not be lower than the minimum reference income considered on the taxation scale of the individually affiliated Independent Employees. From now on, with the amendment, regardless of the salary amount reported to Social Security, the minimum contribution must correspond to the minimum reference income of the independent employee, being defined as the Minimum Contribution Base for all employees, whether they are on regular payroll, independent, or voluntary insured employees who contribute to social security.

In the Disability, Old Age and Death Insurance Regulations, the amendment to articles 2 and 34 introduces the possibility for employers to acknowledge a proportion of the contribution, when these are lower than the Minimum Contribution Base. For example, when an employee has proportional quotas with multiple employers, under no circumstance may the sum of them exceed one quota per month. Therefore, if the employee works part time, they will require two months to cover an entire quota.

Please contact us if you are interested in this matter and you need legal advice on Costa Rican Labor and Employment Law. We will be happy to help and guide you every step of the way.