Contribution to the IVM regime will increase in january 2023 in Costa Rica

During the 9038th Board of Directors meeting of the Costa Rican Social Security Fund (CCSS) held on June 20, 2019, it was agreed to implement a triennial increase of half a percentage point for the Disability, Old Age, and Death Insurance Program (IVM). This increase took effect in January 2020 and will be incrementally applied every three years. The contribution for this increase is tripartite, meaning that it is shared by employers, employees, and the government.

Based on the above, starting in January 2023, the increase in social security contributions for the IVM program will be as follows:

The objective of this percentage increase is to contribute to the sustainability of the IVM retirement program.

It is important to remember that failure to implement these changes when paying or withholding the corresponding social security contributions may result in the initiation of administrative collection procedures by the CCSS against non-compliant employers.

In light of the above, it is advisable for organizations to take preventive measures within the payroll administration process to ensure the execution of updated social security payments and withholdings starting from the first month of 2023.