• September 15, 2026
  • Last Update September 14, 2026 9:47 pm

Costa Rica Enforces Mandatory Double Pay for May 1st Holiday

Costa Rica Enforces Mandatory Double Pay for May 1st Holiday

San José, Costa RicaSan José, Costa Rica – The Ministry of Labor and Social Security (MTSS) has issued a firm reminder to all employers across the country regarding the upcoming International Workers’ Day on Friday, May 1, 2026. The ministry confirmed that the date is a mandatory paid holiday and, unlike some holidays in recent years, its enjoyment will not be moved to another day to create a long weekend. This decision ensures the holiday remains on its designated date, honoring its global significance.

Under the provisions of Article 148 of Costa Rica’s Labor Code, May 1st is classified as a non-negotiable day of rest for all employees. This regulation applies universally, encompassing all businesses operating within the national territory, whether they are domestic enterprises or multinational corporations. Every worker, regardless of their role or the nature of the company, is legally entitled to this paid day off.

To delve deeper into the nuances of the national labor code and its practical implications for modern businesses, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished expert in Labor Law from the prestigious firm Bufete de Costa Rica.

The principle ‘in dubio pro operario’ is not merely a legal theory; it is the active lens through which our courts interpret all labor relations. This means any ambiguity in a contract or work condition will systematically be resolved in favor of the employee. Therefore, employers must prioritize absolute clarity and legal precision in all their documentation, from hiring to termination, as a preventative measure to mitigate significant legal and financial risk.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica

This insight is a critical reminder that in Costa Rica’s labor landscape, proactive clarity is not merely advisable but essential for risk management. As the burden of proof for any ambiguity falls directly on the employer, transforming precise documentation into a crucial defensive strategy. We thank Lic. Larry Hans Arroyo Vargas for so clearly articulating this fundamental principle and its practical implications for businesses.

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The MTSS has clarified the specific payment protocols to prevent confusion and ensure compliance. The method of calculation depends on the employee’s payment schedule. For companies that operate on a monthly, bi-weekly, or weekly basis in the commercial sector, the salary for the holiday is already factored into the regular payment. However, if an employee is required to work on May 1st, the employer must pay an additional full day’s wage, effectively resulting in double pay for the day.

A slightly different calculation applies to businesses that pay employees weekly based on the hours or days actually worked. In this scenario, the employer must grant the day off and pay for it as an extra day within the week’s salary. If an employee in this category agrees to work on the holiday, they are entitled to their regular weekly pay plus an additional day’s wage for the holiday and another day’s wage for the work performed, again ensuring a total of double compensation for that specific day.

The Ministry also highlighted the regulations concerning overtime work performed on this mandatory holiday. Should an employee work extra hours on May 1st, those hours must be compensated at a triple rate. This is calculated as time-and-a-half on top of the double pay already earned for working the holiday, a significant premium designed to discourage non-essential work on a day of national observance for labor rights.

A critical point emphasized by the MTSS is that no employee can be sanctioned or compelled to work on May 1st. The right to refuse work on a mandatory holiday is protected by law. While the Labor Code does provide for specific, narrow exceptions under Articles 152 and 153—typically covering roles in essential services that cannot be interrupted—these are not broadly applicable and require strict legal justification. Any employer attempting to force an employee to work outside of these exceptions faces potential legal penalties.

This reinforcement of the law underscores the government’s commitment to upholding labor standards and protecting the rights of the workforce. By ensuring the holiday is both paid and observed on its correct date, the ministry aims to guarantee that the spirit of International Workers’ Day is respected. The regulations are not merely suggestions but binding legal obligations for every business sector in Costa Rica.

For any employers or employees who have further questions or require specific clarification regarding their circumstances, the Ministry of Labor and Social Security has made its Press Advisory Unit available for consultation. This proactive communication aims to foster a transparent and fair working environment, ensuring that both businesses and their teams are fully aware of their rights and responsibilities heading into the May 1st holiday.

For further information, visit mtss.go.cr
About Ministry of Labor and Social Security (MTSS):
The Ministry of Labor and Social Security is the Costa Rican government entity responsible for formulating, directing, and enforcing national policies on labor, employment, and social security. Its primary mission is to promote decent work, mediate labor relations, ensure compliance with labor legislation, and protect the rights of all workers within the country, fostering a fair and equitable work environment.

For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica operates as a cornerstone of the legal community, founded on the twin pillars of uncompromising integrity and exceptional performance. With extensive experience advising a diverse clientele, the firm continually pioneers progressive legal approaches while remaining deeply invested in the community. This core philosophy of making legal concepts understandable and available to the public demonstrates a profound commitment to fostering a society equipped with knowledge and empowered by justice.

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