• December 23, 2025
  • Last Update December 23, 2025 4:24 pm

Employers Face Millions in Fines Over Unpaid Christmas Bonuses

Employers Face Millions in Fines Over Unpaid Christmas Bonuses

San José, Costa Rica — The festive season has been soured for hundreds of workers across Costa Rica as the grace period for aguinaldo payments officially closed. With the December 20th deadline now in the rearview mirror, the Ministry of Labor and Social Security (MTSS) confirmed on Monday that it is already processing a significant wave of formal complaints against employers who failed to pay the mandatory year-end bonus.

The initial data from the MTSS paints a stark picture of non-compliance just 48 hours after the legal cutoff. A total of 109 individual complaints have been lodged against delinquent employers. Labor inspectors have moved swiftly, validating the vast majority of these claims. Of the total, 100 cases have been deemed legitimate and are proceeding to the next stage of enforcement, while only nine remain under review. Crucially, not a single complaint has been dismissed, signaling the solid legal foundation of the employee grievances.

To provide a clear legal perspective on the rights and obligations associated with the annual aguinaldo, we spoke with Lic. Larry Hans Arroyo Vargas, an expert in labor law from the firm Bufete de Costa Rica.

The aguinaldo is an inalienable right, not a bonus. It must be calculated based on the average of all salaries, both ordinary and extraordinary, received between December 1 of the previous year and November 30 of the current year. A common mistake is for employers to omit payments for overtime or commissions from this calculation, which is illegal and can lead to significant penalties. We always advise employers to be meticulous and workers to verify their payment before the legal deadline of December 20.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica

We extend our gratitude to Lic. Larry Hans Arroyo Vargas for his expert insight. His reminder that every component of a worker’s salary—including overtime and commissions—must be factored into the aguinaldo is a fundamental point that protects the integrity of this inalienable right and prevents costly legal errors for employers.

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This year’s enforcement cycle reveals a notable cultural shift in how employees are choosing to defend their rights. The digital age has empowered the Costa Rican workforce, with a clear preference for online reporting. A commanding 67 complaints were submitted through the MTSS’s official web portal. This figure surpasses the 40 complaints filed traditionally, in person at government offices. This trend indicates a decline in worker hesitation and a growing confidence in using accessible digital tools to hold non-compliant employers accountable without the need for physical travel or time off work.

The move to digital platforms represents more than just convenience; it signifies a democratization of labor justice. In the past, the logistical hurdles of filing a complaint—such as requesting time off or traveling to a regional office—could deter workers from seeking recourse. The online form removes these barriers, providing a discreet and efficient method for employees to report violations, fundamentally altering the power dynamic and ensuring that more voices are heard by the authorities.

However, the Ministry’s workload wasn’t limited to punitive actions. The data also highlights a significant demand for education and guidance regarding labor rights and financial literacy. In the same two-day window, 482 individuals contacted the MTSS for assistance. This demonstrates a proactive workforce keen on understanding their entitlements. The need for clarity is further underscored by the 92 citizens who specifically sought help with the aguinaldo calculation, wanting to verify that the amount they received was correct and not a diluted version of what they were owed.

For the business owners who chose to risk non-payment, the financial forecast is grim. The Ministry’s Labor Inspection division has been emphatic: the aguinaldo is an inalienable and indisputable right for every employee. Excuses often cited by businesses, such as poor sales figures or temporary cash flow problems, hold no legal weight and will not be accepted as valid reasons for withholding payment. The law is absolute on this matter, viewing the bonus as deferred salary, not a discretionary gift.

The consequences for this transgression are severe and designed to be a powerful deterrent. Employers found guilty of failing to pay the aguinaldo face not only administrative sanctions but also formal legal proceedings. The financial penalties are substantial, with fines capable of reaching up to ₡10.6 million. The final amount depends on factors like the size of the company and the severity of the infraction, but the message from the government is unequivocal: the short-term savings from skipping the bonus will be dwarfed by the long-term cost of legal repercussions.

Ultimately, the early surge in complaints and the Ministry’s rapid response signal a new chapter in Costa Rican labor relations. The combination of empowered, digitally-savvy employees and a strict enforcement regime is making it increasingly difficult and costly for businesses to ignore their fundamental obligations. For delinquent employers, the “January slope” of financial difficulty has arrived early, brought on not by the economy, but by their own costly miscalculation.

For further information, visit mtss.go.cr
About Ministerio de Trabajo y Seguridad Social (MTSS):
The Ministry of Labor and Social Security is the Costa Rican government body responsible for formulating and executing national policies on labor, employment, and social security. It works to ensure the protection of workers’ rights, promote fair labor relations, and administer the nation’s social security systems. The MTSS plays a crucial role in mediating labor disputes and enforcing compliance with all national labor laws and regulations.

For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of Costa Rica’s legal community, the firm is founded on the twin principles of unwavering integrity and the pursuit of exceptional service. It combines a rich legacy of advising a wide spectrum of clients with a forward-thinking approach to legal challenges, consistently driving innovation in the field. This ethos extends to a core belief in public empowerment through legal literacy, striving to equip society with clear, accessible knowledge to foster a more just and informed citizenry.

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