Affordable Hired Help

As you know, full or part-time domestic help, is hard to find and prohibitively expensive for the average person, not to mention a retiree, in the United States. This is not the case in Costa Rica. A live-in maid or other full-time help usually costs between $150 and $200 per month. Often you can hire a couple for a bargain price with the woman working as a maid and the man working as a full-time gardener and watchman.

In Costa Rica a maid usually does everything from washing clothes to taking care of small children. You can also use your maid to stand in line for you or run errands and bargain for you in stores, since foreigners often pay more for some items because of their naivety and poor language skills.

General handymen and carpenters are also inexpensive. If you are infirm, one of the above people can assist you with many daily tasks. To find quality help, check with other retirees for references or look in local newspapers (The Tico Times, La República or La Nación).

Costa Rica's labor laws for domestic workers are strict and difficult to interpret. All full time domestic employees have the right to social security benefits from the Caja Costarricense de Seguro Social (roughly the equivalent of our Social Security System). This important institution pays for sick leave, general health care, pension fund, disability pensions and maternity care.

It is the employer’s responsibility to pay monthly social security payments for each employee. The employer must make monthly payments of about 22 percent of the worker’s monthly wage, and an additional 9 percent is deducted from the employee. In return the worker is entitled to social security services mentioned above.

New employees must be registered with social security within a week of being hired. All new employees must register in an office in downtown San José (Tel: 223-9890). There is an automatic trial period of one month for domestic help, during which time an employee may be released without notice or termination pay.

It is also mandatory to insure employees against work-related accidents (seguro contra riesgos de trabajo). This type of workman’s compensation costs 8,000 colones monthly for domestic employees and must be reapplied for annually.

Employers must also pay minimum wage to employees. This wage is set by the Ministry of Labor (Tel: 223-7166) and depends on the job and skills required. Average wages for unskilled workers start at about $120 per month. Live-in help can receive an additional 50% more that is not actually paid to them but is used when computing certain benefits and bonuses.

Live-in domestic help cannot be required to work more than twelve hours a day, although few expect this. Live-in workers usually work-eight hours a day like other workers. Most regular employees work an eight-hour day, five days per week. Live-in employees can work more than this but have to be given some time off.

Furthermore, employees are entitled to a paid vacation depending on their length of employment and whether they are full or part-time. The law requires one day of vacation for every month of employment. A two-week vacation is due after fifty weeks of work. The employer can choose the time the vacation is taken and can require that half be taken at two different times, but they must be granted within fifteen weeks of the time when they were due. Employers must also pay aguinaldo or Christmas bonus if an employee has worked from December 1 through November 30. It is the equivalent of one month’s salary. This Christmas bonus should be paid in early December. Don’t forget that live-in employees receive an additional 50 percent Christmas bonus. Employees must also be paid for five official holidays.

Paid holidays are January 1, Thursday and Friday at Easter, April 11, May 1, July 25, August 15, September 15, and December 25th. A maternity leave of one month before a baby’s birth is required; the employee receives 50% of her normal salary.

In some cases when a worker is terminated it is the employer’s responsibility to pay severance pay, all accumulated, unused vacation time, the proportionate aguinaldo and any wages due.

An employee must be given notice prior to being laid off. Severance pay, or cesantía, is usually one month’s salary for each year worked. If an employee resigns voluntarily, the employer doesn’t owe severance pay.

We have touched only briefly on the main points of Costa Rican labor law because it is very complex. If you have any questions, we advise you to contact the Minister of Labor (223-7166) or better yet your attorney. Have your lawyer help with any labor related matters to avoid unnecessary problems arising between you and your hired help. There are two new books to help you communicate better with your hired help: Crown Publishers Home Maid Spanish and Barron’s Household Spanish. Both books enable you to converse with your Spanish-speaking help without being fluent in the language. They are filled with all of the essential words and phrases you need to know. As of July 1, 2001 monthly minimum salaries are unskilled workers $230, semi-skilled workers $260, skilled workers $285, technicians $290, technicians with higher education $450 and employees with a university degree $530. To give you more of an exact idea of what salaries are like in Costa Rica, here are some samples of the approximate starting minimum monthly wages as established by the Labor Ministry or Ministerio de Trabajo y Seguridad Social: Accountant $400.00, bus driver $200.00, chauffeur $175.00, clerk $175.00, computer operator $300.00, dentist or doctor $1000.00, other professionals $430.00, farm hand $125.00, domestic worker $120.00, executive bilingual secretary $375.00, guard $180.00, journalist $550.00, messenger $175.00, nurse $375.00, plant supervisor $400.00, phone operator $170.00, secretary $200.00, and unskilled laborer $120.00.

Only inexperienced workers receive these starting salaries. Experienced workers command higher wages. However, keep in mind that these figures vary and are subject to change at any time. Such factors as bonuses and other perks also increase actual salaries.