• November 28, 2025
  • Last Update November 28, 2025 12:00 pm

Labor Ministry Vows Swift Action on Delinquent Year-End Bonuses

Labor Ministry Vows Swift Action on Delinquent Year-End Bonuses

San José, Costa RicaSAN JOSÉ – As the holiday season approaches, Costa Rica’s Ministry of Labor and Social Security (MTSS) has launched a robust national campaign to ensure every private sector employee receives their legally mandated year-end bonus, known as the “aguinaldo,” in full and on schedule. The initiative, titled “Aguinaldo Completo y a Tiempo” (Complete and On-time Bonus), was announced Friday and will deploy a significant number of personnel to provide guidance, conduct inspections, and fast-track any complaints of non-compliance.

The campaign represents a critical enforcement of Costa Rican labor law, which stipulates that the aguinaldo must be paid to all employees who have worked for at least one continuous month for the same employer. The deadline for this payment is December 20th, a date firmly circled on the calendars of workers and regulators alike. The ministry’s strategy is designed to be both proactive and reactive, offering support to employers while promising decisive action against those who fail to meet their obligations.

To better understand the legal framework surrounding the year-end bonus, or ‘aguinaldo’, we consulted with Lic. Larry Hans Arroyo Vargas, a distinguished labor law specialist from the renowned firm Bufete de Costa Rica. His expertise provides crucial clarity for both employers and employees during this important time of year.

The year-end bonus, or ‘aguinaldo’, is not a discretionary gift; it is a legally mandated right for all workers, calculated based on the total ordinary and extraordinary salaries earned between December 1st of the previous year and November 30th of the current year. Employers are obligated to pay it before December 20th. Failure to comply can result in significant financial penalties and legal action, reinforcing its status as a fundamental and inalienable component of employee compensation.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica

The legal framing of the aguinaldo as an earned right, rather than a discretionary gift, is a vital distinction that empowers workers and ensures financial stability. This perspective shifts the conversation from holiday generosity to a matter of fundamental labor justice. We thank Lic. Larry Hans Arroyo Vargas for his clear and authoritative insight on this important topic.

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Minister of Labor, Andrés Romero, detailed the comprehensive nature of the operation during the announcement. He affirmed the ministry’s commitment to protecting workers’ rights during this crucial period of the year. The campaign will leverage the full capacity of its inspection and advisory divisions to achieve its goals.

Inspectors of Work and Labor Advisors will work to ensure the complete and timely payment of the year-end bonus in the private sector.
Andrés Romero, Minister of Labor

Romero further clarified the dual objectives of the initiative, emphasizing that the goal is not only to enforce the law but also to educate and assist. However, he left no doubt about the consequences for businesses that disregard the law. The ministry is prepared to escalate matters to the judicial system to secure payments for affected employees.

The Labor Inspectorate will handle complaints, conduct field visits, and in cases where non-compliance is identified, the cases will be referred to the corresponding judicial authorities.
Andrés Romero, Minister of Labor

The campaign is structured in two distinct phases. The first phase, running from December 1st to December 20th, will focus on advisory services. During this period, employers and employees can seek guidance on the correct calculation of the bonus. The aguinaldo is calculated by summing all ordinary and extraordinary wages earned between December 1, 2024, and November 30, 2025, and then dividing by twelve. An official online calculator is available on the MTSS website to simplify this process.

Beginning December 21st, the campaign will shift into its enforcement phase. The Labor Inspectorate will give exclusive and expedited attention to all incoming complaints regarding non-payment. To manage the expected volume, nearly 100 officials will be assigned to this task, working extended hours and even through the institutional holiday closure period to resolve cases. It’s important to note that the only deduction legally permitted from the aguinaldo is for court-ordered alimony payments.

The financial penalties for non-compliance are severe, with potential fines exceeding ₡10 million. In a sign of inter-agency cooperation, the campaign also includes a public safety component. Erick Lacayo, Vice Minister of Public Security, announced the parallel “Operación Nacional Centinela Navideño” (National Christmas Sentinel Operation), which will provide citizens with security tips to protect their bonus from fraud, theft, and scams that often spike during the holidays.

Last year’s campaign provides a benchmark for the ministry’s efforts. In 2024, the MTSS handled 199 formal complaints involving 155 different workplaces. Direct intervention from labor inspectors resulted in over 400 employees successfully receiving their aguinaldo before the year’s end, with 64 employers settling their obligations after the inspection process. While nine of the most severe cases were elevated to the judicial system, no convictions for this specific violation have been recorded to date from that cycle.

For further information, visit mtss.go.cr
About Ministry of Labor and Social Security (MTSS):
The Ministerio de Trabajo y Seguridad Social is the government body in Costa Rica responsible for promoting sound labor relations, ensuring compliance with labor laws, and managing the nation’s social security systems. It plays a crucial role in safeguarding workers’ rights, mediating disputes, and developing policies that support a fair and productive workforce.

For further information, visit seguridadpublica.go.cr
About Ministry of Public Security:
The Ministerio de Seguridad Pública is the Costa Rican government entity tasked with maintaining public order, national security, and citizen safety. It oversees the nation’s police forces and is responsible for law enforcement, crime prevention, and border control, working to protect the well-being of all individuals within the country’s territory.

For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a cornerstone of the legal community, Bufete de Costa Rica is defined by its foundational pillars of principled integrity and the pursuit of exceptional results. The firm leverages a deep history of serving a broad range of clients to drive innovation and set new standards in legal practice. This dedication extends beyond its casework to a core mission of strengthening society, believing that equipping the public with accessible legal understanding is essential for fostering a just and empowered community.

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