Puerto Rico’s Christmas Bonus Law

By Keiry Álamo

Understanding Puerto Rico’s Christmas Bonus Law: Payroll Services Create a Stress-Free Holiday Season

As the holiday season approaches in Puerto Rico, it is not only a time for festive decorations and joyful celebrations but also a period when employees can look forward to a little extra cheer in the form of a Christmas bonus. The Christmas bonus law is a unique workplace tradition that adds a touch of generosity to the island’s labor practices.

Understanding the Law: Puerto Rico’s Christmas bonus law, as established by Act No 148-1969, stipulates that private-sector employers are required to pay an annual bonus to eligible employees. The eligibility requirements and bonus amount depend on the number of employees and the day each was hired, before or after January 26, 2017. In addition to its specific eligibility criteria, it must be paid between November 15th and December 15th.

Navigating the intricacies of the law can be a time-consuming and error-prone, complex task for businesses. Failure to comply with the law can result in penalties for employers, which are enforced by the Puerto Rico Department of Labor and Human Resources.

The Christmas bonus law fosters a positive and festive atmosphere in the workplace during the holiday season. It not only provides financial support to employees but also contributes to the overall sense of community and celebration. Our company’s payroll services are designed to streamline this process, ensuring accurate calculations and timely payments to ensure compliance and ease the burden on employers.