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Find out how the recent Independent Employee Law in Costa Rica is providing economic relief to independent employees with outstanding debts in the Costa Rican Social Security Administration (CCSS)! This law introduces a limitation period for those debts that they have for more than a decade and that are impossible to pay.
Independent Employee & CCSS
Now, independent employees will be able to formalize their situation with the CCSS and keep up with their contributions. In addition, a four-year limitation period has been established for the collection of outstanding debts. Imagine, only the last four years of debt will be collected, without fines or interest!
CCSS and the delinquent independent employees
To April 16, 2023, according to data from the Centralized Collection System (SICERE), there are a total of 134,659 active independent employees and delinquent independent employees who have debts that are more than 4 years past due, for an amount of ¢301102 million (1).
Independent employees in Costa Rica must register with the CCSS
It is essential to take into consideration that employees who do not register with the CCSS, who fail to comply with the corresponding declarations, or those who have made fraudulent declarations, the prescription will increase from four years to ten years. In both cases, Employees may also request that the statute of limitations be declared in administrative proceedings.
Check here how you can request the prescription of the debt in administrative proccedings
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.
If you need legal advice on this matter, at ERP Lawyers we are ready to help you. We have a team of experts who can guide and collaborate with you in this matter. Do not hesitate to contact us through our email info@erplawyers.com and get the advice you need to handle any situation related to independent employees and the CCSS in Costa Rica.