A government agency meant to help Costa Ricans, or “ticos” as they call themselves, has spent nearly two decades keeping over a million people out of the formal economy. 
Starting in 2005, independent workers were required to contribute to the Costa Rican Social Security Fund (CCSS). Since then, it kept a ledger of what each independent worker in the informal sector owed in unpaid payroll taxes, often based on assumptions and rough estimates of each worker’s income. Interest and fees drove the debts even higher. 
According to government estimates, there are about one million informal workers that make up roughly 20% of the Costa Rican total population and half of all workers in the country. Since most informal workers receive low incomes, these debts were far beyond their ability to pay, and they actively worsened the lives of over a million ticos.
Because independent workers were required to first pay off their debts before entering the legal or “formal” job market, they were stuck doing work that was underpaid, often unstable, and sometimes dangerous. These jobs offered them little hope of paying off their taxes or of escaping poverty, creating a vicious cycle. Even worse, the CCSS publicly listed individuals not registered with the system, creating a stigma that hindered their access to credit and government contracts. 
The path to a better life started with formalization, but they couldn’t take even the first step.
Determined not to let the abuse of thousands of Costa Rican workers continue, Atlas Network partner IDEAS Labs began a campaign to slash the tax debts levied by the CCSS. Backed by grant support and professional development opportunities from Atlas Network, they worked closely with members of congress, the CCSS board, the Costa Rican Chamber of Commerce, and the Costa Rica Bar Association to craft and advance reforms.