The Christmas Bonus in Costa Rica

The Christmas bonus is a right for all workers in Costa Rica, regardless of their type of employment, as long as it’s based on a labor contract.

This right is regulated under a specific law, the Christmas Bonus in Private Enterprises Act, law number 2412.

The Christmas bonus may be equivalent to a thirteenth month because, if the worker has been employed for the entire legally established period, it translates to a full month’s salary, and in some cases, could even be higher.

How Is the Christmas Bonus Calculated and Paid?

How is it calculated? According to the law, all regular and overtime wages received by the worker from December 1 of the previous year to November 30 of the current year are added up and then divided by 12. Therefore, if the worker was active during this entire period and has variable pay, the Christmas bonus could be higher than their average monthly salary.

What happens if the worker leaves before completing this period? The worker is entitled to a proportional amount of the Christmas bonus.

There are situations that can impact this calculation, the most common being illness, which may lead to temporary leave due to incapacity.

When a worker is on leave due to a regular illness or a workplace accident, they receive a subsidy rather than a salary, and, as stated above, only wages are considered for the Christmas bonus calculation. Therefore, if there are months during this period where the worker was incapacitated and earned less, this lower amount will be used in the calculation.

Exceptions and Special Situations:

It’s important to highlight that there is an exception for maternity leave. In this case, although the worker is “inactive,” what she receives during this period is considered salary and is therefore included in the Christmas bonus calculation. Additionally, workers on maternity leave receive 100% of their income.

The Christmas bonus is exempt from social security contributions and taxes, which is a considerable benefit for those who receive it.

Key Rules for Receiving the Christmas Bonus

When is the Christmas bonus paid? By law, it must be paid within the first 20 days of December.

Is the Christmas bonus subject to garnishment? Yes, it can be garnished if a court order is issued by a competent authority, for example, to cover child support payments.

Can the worker lose their right to the Christmas bonus due to serious misconduct?
No. This payment must be made, just like vacation pay, regardless of the reason for termination of the employment relationship.

We hope this information has been useful to you.

Until next time,
Marcela Acosta V
Quatro Legal Partner
mav@quatro.legal

Disclaimer: The information provided in this blog post is for general informational purposes only and is not intended to constitute legal advice. While we strive to ensure the accuracy and timeliness of the content, laws and regulations are subject to change. For the most accurate and up-to-date information, please contact our office directly. Some images may be AI generated.