How are holidays paid in Costa Rica?

How are holidays paid in Costa Rica?

Categories: Blog

The Law in Costa Rica specifies that holidays paid must be granted to every worker to participate in special celebrations, whether civic, religious, social or historical. Therefore, if you have ever worked on a holiday, you must have been paid.

There are 2 types of holidays

The Labor Code establishes 2 types of holidays: mandatory paid holidays and non-mandatory paid holidays, as detailed below:

Mandatory paid holidays:

  • January 1st (Circumcision of Christ – New Year)
  • April 11th (Juan Santamaría Day)
  • Holy Thursday and Friday (Holy Week)
  • May 1st (International Labor Day)
  • July 25 st (Annexation of the Nicoya Party to Costa Rica)
  • August 15 st (Mother’s Day and Assumption of the Virgin)
  • September 15 st (Independence of Costa Rica)
  • December 25 st (Nativity of Jesus Christ)

Non-mandatory paid holidays

  • August 2nd (day of the Virgin of the Angels)
  • October 12th (Culture Day)

Ways to enjoy the Holiday

In the event that the holidays, April 11th, July 25st and October 12th fall on a tuesday, wednesday, thursday or friday, the employer must ensure that day is worked and enjoyment of the holiday is transferred to the following monday.

In case of working in a company that has a lot of activity on saturdays and sundays or that cannot stop their work on mondays, the employee can enjoy the holiday on any other day agreed with the employer, provided that the selected day is given within a period of no more than fifteen days after the date of the holiday in question. Other holidays must be enjoyed on the corresponding day.

If you are a worker who practices a religion other than the Catholic religion, in addition to the eleven holidays indicated above, you have the right to celebrate your religious celebrations.

To do this, you can ask the employer to grant you no more than four days off per year, provided that such days are registered with the Ministry of Foreign Affairs and Cult. These days will not be paid; but may be reduced from vacations, by agreement between employer and worker.

Compensation received on holidays

The compensation of holidays in Costa Rica depends on the way the salary is paid, as well as day in which rest corresponds and of the activity of the company. Regardless of the payment method, the mandatory payment holiday must be compensated, even if it coincides with the weekly rest day. All this is regulated by the Labor Code and by the method of payment. Therefore, the Labor Code of Costa Rica establishes the following criteria:

  • Nine of the eleven holidays are mandatory (January 1st, April 11th, Thursday and Holy Friday, May 1st, July 25 st, August 15th, September 15th and December 25st), and two are not (August 2nd and October 12th).
  • The payment of holidays will be determined by the company’s method of payment of the salary; so if the worker is compensated per unit of time (day, week, month or fortnight) the holiday payment will be equal to the daily ordinary salary.
  • If it is a piece payment (value per production) the holiday will be paid according to the average daily salary.
  • Companies that have a weekly payment method are obliged to compensate only the mandatory payment holidays.
  • When there is a mandatory holiday in a week, the employer must pay, in addition to the salary earned on the days actually worked, an additional amount corresponding to the holiday.
  • Companies that have a monthly payment method (with or without a fortnightly advance), a global payment system that pays every day of the month, up to thirty days, whether they are business or non-working days, do not distinguish between holidays; therefore all 11 days (holidays) must be compensated in a mandatory way, so that the simple payment of holidays is not made additionally, like it happens in the weekly payment, since it is already included in the salary.
  • When the employer forces his workers to work the holidays, based on the exceptions established by law, he must pay them compensation, which means double the salary earned.
  • When weekly paid workers must work a mandatory paid holiday, the double day must be paid.
  • In the case of monthly payment in any activity, including in commerce with weekly payment, when workers work a holiday, the employer must add an additional payment to the monthly salary to complete (along with the one already in the salary) the double payment provided by law.

It is important that as a worker or employer you know your duties and rights, and keep yourself informed about it, in order to avoid future inconveniences.

At ERP Lawyers we have a team of professionals specialized in labor law, willing to provide the advice and support required so that you can legally exercise your labor obligations and responsibilities. Contact us today to receive ethical and responsible advice in this area.

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