Q COSTARICA (Edit)—All public and private sector employees in Costa Rica are entitled to the Aguinaldo, the year-end bonus or thirteenth salary, payable in December of each year.
Although the amount of the payment depends on several factors, it usually matches an employee’s monthly salary and can be paid in one or more installments during the month, but not later than December 20.
The Aguinaldo is a mandatory payment, required by law to be paid to all employees who have worked for at least one month between December 1st of the previous year to November 30th of the current year. Its amount equals, for simplicity’s sake, one-twelfth of the total wages earned throughout that year, making it a proportional bonus that reflects each worker’s individual earnings.
This practice isn’t just about extra cash; it’s designed to ease the financial strain that often accompanies the holiday season. From gift shopping to family gatherings, December can be an expensive month, and the Aguinaldo helps many meet those year-end expenses without added stress.
One of those stress expenses for those who own vehicles is the Marchamo, the annual circulation permit for vehicles.
ALL employers are legally obligated to pay the Aguinaldo by December 20th each year. Missing this deadline can lead to penalties and interest charges, pushing companies to prioritize this payment. For workers, it’s often viewed as a crucial part of their annual income—a chance to settle debts, save, or simply enjoy the festivities in a more relaxed way.
The Aguinaldo system also reflects Costa Rica’s commitment to social welfare. By mandating this bonus, the government ensures a more equitable distribution of wealth, especially during a season when financial pressures tend to mount for lower and middle-income families.
Beyond the numbers and legalities, the Aguinaldo serves as a cultural symbol, reinforcing the values of community and generosity that mark Costa Rican society. It’s one of the few countries in Latin America with such a firmly codified end-of-year bonus, setting Costa Rica apart in its approach to worker rights and holiday traditions.
But how is the Aguinaldi calculated?
These are the rules surrounding this extraordinary payment:
- All gross salaries (ordinary and extraordinary) received by the employee from December 1st of the previous year to November 30th of the current year must be added together, and that total divided by 12.
- All remuneration, both ordinary and extraordinary, must be included, including base salary, overtime, commissions, holidays, rest days, and any other salary payment.
- “Salary in kind” (Salario en especie in Spanish)—non-cash compensation for work performed, such as benefits, goods, or services provided by an employer instead of money—must also be taken into account.
- If an employee did not work the entire period, whether due to resignation, dismissal, or starting work mid-year, they are entitled to receive a proportional payment of their Aguinaldo for the months they worked.
- When a person is incapacitated, the employee is entitled to the Aguinaldo for the time they did receive wages; that is, the period the employee was incapacitated due to illness or work-related injury is not taken into account, since they did not receive a salary but rather a “subsidy.”
- The only deduction that can be made from the Aguinaldo due to the employee is the amount corresponding to child support payments. No other deductions for taxes or social security contributions should be applied.
An example of a calculation of the Aguinaldo:
- Salary from December 1 to May 31: ¢600,000 per month
- Salary from June 1 to November 30: ¢660,000 per month
According to the data above, the Aguinaldo is ¢630,000 colones.
The Ministry of Labor offers an online calculator to help determine the correct amount, which you can access at the following link: https://www.mtss.go.cr/buscador/Aguinaldo.aspx
Edit: The earlier calculation mistakenly treated a ¢300,000 payment in kind (especie) as a monthly amount, when it should have been considered a one-time payment. The image also displayed Costa Rica’s financial calculations, factoring in the decimo (one-tenth), with a long trail of zeros at the end. Very confusing.