Q COSTA RICA — This coming weekend and next are holiday weekends in Costa Rica, but with a difference: among them is the way these holidays are paid, which varies depending on the type of holiday, the employee’s payment method, and whether they work during the regular workday.
The experts recommend reviewing the regulations to avoid errors in salary calculations.
The July 25th holiday commemorates the 202nd anniversary of the Annexation of Nicoya, and the August 2nd holiday, corresponding to the Día de la Virgen de los Ángeles (Day of Our Lady of the Angels).
Under Costa Rican labour law, they are treated differently. Therefore, both employers and employees should be aware of how each holiday is compensated to avoid errors in payroll.
According to Article 148 of the Labor Code, July 25th is a mandatory paid holiday, while August 2nd is a non-mandatory paid holiday.
This difference determines how much should be paid if the employee works on those dates or chooses to take them as a day off.
In the case of July 25th, those who are paid hourly or daily in non-commercial activities are entitled to holiday pay even if they do not work. If they work that day, the day must be paid at double time.
For individuals with monthly, bi-weekly, or weekly salaries in commercial activities, holiday pay is already included in their regular salary. If they work on July 25th, the employer only needs to add an additional single payment to complete the equivalent of double pay.
If overtime is worked during that day, it must be paid at a rate of 50% above the hourly rate for the holiday.
The situation changes on August 2nd, when employees with monthly or bi-weekly salaries are entitled to enjoy that day with the holiday pay already included in their salary. If they work, the day must be paid at double time, and if overtime is worked, it is paid at triple time.
Those who receive weekly, daily, or hourly pay can rest on that day, but the employer is not obligated to pay for the holiday if they do not work. If they do work, the workday is paid at the regular rate, and overtime is paid at time and a half.
Although the general rule is that holidays are days off, the law allows companies to require their employees to work (except for the Día de la Madre – Mother’s Day on August 15) when the nature of the business requires it.
Unlike previous years, none of these holidays will be moved in 2026 to the following Monday to create a long weekend. July 25, which falls on a Saturday, and August 2, which falls on a Sunday, must be observed on their official dates.
How are holidays paid in Costa Rica?
July 25 (mandatory payment)
- If no work is performed, holiday pay is due according to the employee’s salary scale
- If work is performed, the workday is paid at double time.
- Overtime is paid with a 50% surcharge on the hourly rate for the holiday.
August 2nd (non-mandatory payment)
- Monthly or bi-weekly salary: the holiday is already included; if you work, double pay is due.
- Weekly, daily, or hourly salary: if you don’t work, the employer is not obligated to pay for the day; if you work, you are paid at the regular rate.
- Overtime is paid according to the applicable payment method.