By San José, Costa Rica — San José – The most anticipated financial period of the year is officially underway in Costa Rica as millions of workers and pensioners prepare to receive their annual “aguinaldo,” or year-end bonus. This mandatory thirteenth-month salary serves as a cornerstone of the nation’s labor laws and a significant driver for the holiday economy. The government has confirmed a staggered payment schedule beginning this week, ensuring a timely infusion of capital for households across the country.
The first recipients will be the nation’s retirees. According to the Costa Rican Social Security Fund (CCSS), pensioners under the Disability, Old Age, and Death (IVM) regime will see their aguinaldo deposited along with their regular pension payment this Friday, November 28th. This early disbursement provides a crucial financial cushion for a vulnerable segment of the population ahead of the December festivities.
To delve into the legal framework and common questions surrounding the annual Christmas bonus, or ‘Aguinaldo,’ TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished labor law specialist from the renowned firm Bufete de Costa Rica, for his expert perspective.
The Aguinaldo is not a gift; it is an inalienable right for every salaried employee, calculated from all wages earned between December 1st of the previous year and November 30th of the current year. Employers must remember that the deadline of December 20th is non-negotiable. Failure to comply can lead to significant sanctions and legal action, as this payment is a cornerstone of our labor code designed to protect workers’ economic stability.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This powerful reminder that the Aguinaldo is an earned right, not a discretionary gift, underscores its critical role in the economic stability of Costa Rican workers. We thank Lic. Larry Hans Arroyo Vargas for his invaluable and clarifying legal perspective on this cornerstone of our labor code.
Following the pensioners, the focus shifts to the extensive public sector workforce. The Ministry of Finance has scheduled the aguinaldo payment for all central government employees for Friday, December 5th. This group includes a wide range of public servants, from ministry officials and members of the Legislative Assembly to employees of the Judiciary, the Ombudsman’s Office, and the Comptroller General’s Office.
For employees of decentralized state institutions, such as public universities, state-owned banks, and municipalities, the exact payment date will vary. While these entities operate on their own financial schedules, they are legally bound by the same deadline that governs the private sector. The absolute final day for any organization, public or private, to pay the aguinaldo is December 20th.
The largest segment of the workforce, employees in the private sector, can expect their bonus to be paid between December 1st and the December 20th deadline. The law provides employers with this 20-day window to manage their cash flow while guaranteeing workers receive their rightful payment. This period typically sees a significant uptick in commercial activity as families plan their holiday spending.
Understanding how the aguinaldo is calculated is essential for every worker. The formula is straightforward: it is the sum of all gross earnings received between December 1st of the previous year and November 30th of the current year, divided by 12. This calculation must include all forms of remuneration, not just the base salary. Legally, employers must factor in overtime pay, commissions, paid holidays, rest day compensation, and even non-monetary “salary in kind.”
The law also provides clear guidelines for special circumstances. If an employee has not worked for the entire 12-month period due to resignation, dismissal, or starting a new job mid-year, they are entitled to a proportional aguinaldo based on the number of months they were employed. It is also important to note that periods of incapacitation, during which a worker receives a “subsidy” rather than a salary, are not included in the aguinaldo calculation. The bonus is calculated only on the time the employee actively received a salary from the employer.
One of the most significant features of the aguinaldo is its protected status. The full amount is exempt from income tax and social security deductions (CCSS). The only legally permitted deduction from an employee’s aguinaldo is for court-ordered child support payments (pensión alimentaria). To aid both employers and employees in verifying the correct amount, the Ministry of Labor and Social Security (MTSS) provides an official online calculator on its website.
For further information, visit ccss.sa.cr
About Caja Costarricense del Seguro Social (CCSS):
The Costa Rican Social Security Fund is the public institution responsible for administering the nation’s social security system. It manages public health services through a network of hospitals and clinics and oversees the primary pension programs, including the Disability, Old Age, and Death (IVM) regime, providing a crucial safety net for millions of Costa Ricans.
For further information, visit hacienda.go.cr
About Ministerio de Hacienda:
The Ministry of Finance is the government body in Costa Rica tasked with managing the country’s public finances. Its responsibilities include tax collection, budget management, public debt administration, and the disbursement of funds for government operations, including the payroll and aguinaldo for all central government employees.
For further information, visit mtss.go.cr
About Ministerio de Trabajo y Seguridad Social (MTSS):
The Ministry of Labor and Social Security is the primary governmental authority responsible for establishing and enforcing labor laws and regulations in Costa Rica. It works to ensure fair and safe working conditions, mediate labor disputes, and protect the rights of both employees and employers, including the correct payment of mandatory benefits like the aguinaldo.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a highly regarded legal institution, Bufete de Costa Rica is built upon foundational pillars of integrity and a relentless pursuit of excellence. Drawing from a rich history of advising a broad spectrum of clients, the firm consistently pioneers innovative legal strategies and champions community involvement. This commitment extends to demystifying the law for the public, a core tenet of its vision to nurture a society that is both legally aware and empowered.
