San Mateo creates an employer subsidy of up to one year for disability leaves

The Municipality of San Mateo, in Alajuela, created a complementary employer subsidy for all its personnel who fall under temporary disability recognized by the Costa Rican Social Security Fund (CCSS) or the National Insurance Institute (INS). The measure was formalized through the reform of the Autonomous Regulation of Organization and Operation of the Municipality of San Mateo, published in La Gaceta No. 213 on Tuesday, November 10, 2026, and is effective as of that same publication.

The regulatory framework of the reform

The text, signed by Vice Mayor Daniel Carranza Miranda, adds a Title IV bis to the municipal regulation, consisting of articles 96 bis, 96 ter, and 96 quáter, in addition to a single transitory provision. The publication appears under the official reference IN202601138064, in the Regulations section, pages 57 and 58 of the official gazette.

According to the recitals, the reform draws on the precedent of the previous publication of the regulation, disseminated in digital supplement No. 172 of La Gaceta No. 214 on November 6, 2012. The proposal arrived via official letter VCSM-042-2026 on October 9, 2026, and was adjusted with the modifications of article 11, agreement No. 2, of ordinary session No. 128 of the Municipal Council, held on October 19, 2026, and communicated by official letter SCMSMINT-204-10-2026 on October 20, 2026.

How the subsidy is paid

Article 96 bis establishes four coverage scenarios, always based on the reference ordinary daily remuneration:

• CCSS disabilities of one to three days without a subsidy from that institution: The Municipality recognizes 100% up to a maximum of two days per calendar month per employee, distributed according to the chronological order of the slips and without the possibility of being accumulated in subsequent months.
• CCSS disabilities of more than three days: 100% during the first three days without a subsidy, which are not counted toward the monthly limit; from the fourth day onward, a 40% supplement.
• Disabilities subsidized by the CCSS from the first day: a 40% supplement from that same day, including the case of successive disabilities extended within 30 days after the previous one.
• Occupational risks recognized by the INS: during the first three days of each disability, the difference between the INS benefit and 100% of the daily remuneration is paid, without being subject to the monthly limit; from the fourth day onward, 40%.

In no case may the sum of the insurance benefit and the municipal contribution exceed 100% of the ordinary remuneration for the same period, nor generate double payment for the same contingency. If the 40% supplement exceeds that ceiling, the municipal contribution is reduced to the necessary difference.

Calculation base, maximum term, and controls

Article 96 ter defines the reference ordinary remuneration as the base salary or global salary plus the fixed and permanent components of the position and the ordinary workday. Overtime, per diems, allowances, travel expenses, occasional availability payments, variable incentives, and any item conditioned upon the effective provision of service are excluded.

For continuous incapacities of more than three days, from the CCSS or the INS, the subsidy is recognized during the first six months, extendable only once for an additional six months, up to a maximum of one year. The period is computed from the first day of the continuous period, and new certificates do not restart the count. The benefit ceases when the incapacity or the service relationship ends, the period expires, permanent incapacity is declared, or the insurer annuls or rejects the certificate.

Article 96 quáter clarifies that these sums are in the nature of a subsidy and not a salary: they do not serve as a basis for the Christmas bonus (aguinaldo), school salary, seniority payments, vacations, benefits, or social charges. While receiving the benefit, the official may not perform any other remunerated activity, public or private, and the Administration must budget the resources annually, as payment cannot be ordered without budgetary coverage. The sole transitory provision states that the reform applies to incapacities starting after its entry into force and, for those already in progress, only to the subsequent days.

Impact

The reform transfers to the municipal budget a coverage that until now depended on the CCSS or the INS, with a ceiling of one year per continuous period and monthly limits for short absences. The benefit covers all personnel subject to the regulation, requires Human Resources to verify each certificate, and creates a recurring budgetary burden for the Municipality of San Mateo, which must include it in its budget every year.

Source: La Gaceta, No. 213, Tuesday, November 10, 2026, Regulations, pp. 57-58 (official reference: IN202601138064).