The formula — and why the pro-rata works itself out
Christmas bonus = total pay for the period ÷ 12. That is the whole rule.
Which removes half the usual errors: there is no separate pro-rata calculation for someone who started mid-year. If they worked five months, the total only contains five months; dividing by twelve produces the proportional amount on its own. The formula is the same for everybody.
| Case | The sum | Bonus |
|---|---|---|
| Full year, ₡500,000 a month | ₡6,000,000 ÷ 12 | ₡500,000 |
| Started in July, ₡500,000 a month | ₡2,500,000 ÷ 12 | ₡208,333.33 |
| ₡500,000 plus ₡900,000 of commission in the year | ₡6,900,000 ÷ 12 | ₡575,000 |
The proportional right belongs to anyone who has not completed the year, as long as they worked at least one month.
What goes into the total
Everything that counts as pay, ordinary and extraordinary. This is where employers most often underpay, by taking only the base salary:
- The base salary
- Overtime
- Commission
- Paid public holidays and rest days
- Any other payment that is salary in nature
What is not deducted
The income tax exemption covers the bonus up to one twelfth of the period's pay. If a company chooses to pay more than that — as its own policy, or under an agreement — the excess is taxable.
The only deduction a Christmas bonus admits is court-ordered family maintenance. Nothing else: not an advance, not a company loan, not the canteen account.
When it is paid
Before 20 December, without exception. Not “in December”: before the 20th.
And if employment ends earlier, the proportional bonus forms part of the final settlement and is paid with it, not in December. What a settlement contains.
Why it should be accrued monthly
The bonus is paid in December but it is earned every month. Charging the whole amount to December leaves eleven months with overstated profit and one December that looks like a disaster.
The monthly accrual is 8.33 % of gross pay, against a liability for Christmas bonus payable, cancelled in December when it is paid. If the liability does not match what has to be paid, the difference shows up — and November is a much better month to find that out than the 19th of December.
Quick questions
What if the person worked less than a month?
The proportional right requires at least one month worked.
Can I pay it early, or in instalments?
The obligation is that it is paid before 20 December. Paying early does not remove the duty to top it up if the period's total turns out higher.
Is there a “fourteenth month” too?
Not by law in the private sector. If a company pays one, it is its own benefit and it does not share the exemption.
The accrual happens with the payroll
One twelfth is set aside each month in its own account, so December is a payment and not a surprise.
See how it worksAbout this article. The calculation, the period and the proportional right come from Law 2412; the income tax exemption from article 35 of the Income Tax Act. This is not employment law advice: for a specific case, consult the Ministry of Labour or your adviser.
Verified as of 24 September 2026. Rules change. This is information, not legal or tax advice.
Sources: Current legal texts (Sinalevi) Ministry of Labour