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Disability, Old Age, and Death Pension Contribution Increase

13
January, 2023
Disability, Old Age, and Death Pension Contribution Increase

Categories: Blog

As of January 1st, 2023, the pension contribution to be made by employers, workers and the State to the Disability, Old Age and Death (IVM) regime of the Costa Rican Social Security Fund will increase. According to the agreement of the Board of Directors, from session 9038 of June 20th, 2019; the increase will be made on a tripartite basis.

The joint increase will be 0.5% so the tripartite contribution will increase from 10.66% to 11.16%. This will be effective until December 31st, 2025, and the contributions will be made as follows:

– Employer: will contribute an additional 0.17% for a total of 5.42%.
– Worker: Will contribute an additional 0.17% for a total of 4.17%.
– State: Will contribute an additional 0.16%, for a total of 1.57%.

This increase seeks to contribute to the financial sustainability of the retirement system that gathers all the contributors of the Costa Rican Social Security Fund.

ERP Lawyers has a team of experts who can guide and assist you if you require legal advice on this matter. We invite you to contact us at info@erplawyers.com.

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