#CostaRica 🇨🇷 #BDS_Informs: July 25 and August 2 Public Holidays: Key Legal Rules Employers Should Know

The first of these is July 25, marking the 202^nd anniversary of the Annexation of the Section of Nicoya. This is followed by August 2, the Feast of Our Lady of the Angels, Patron Saint of Costa Rica.

From a labor law perspective, and pursuant to Article 148 of the Labor Code, July 25 is classified as a mandatory paid public holiday, whereas August 2 is a non-mandatory paid public holiday. This distinction is important, as it determines the applicable compensation rules in each case.

Compensation Rules for the Mandatory Paid Public Holiday (July 25)

• Hourly-paid employees in non-commercial activities: Employers must pay employees for the days actually worked and, in addition, pay one ordinary day's wages for each mandatory paid public holiday. If the employee works on the holiday, the day must be paid double.
• Monthly, biweekly, or weekly-paid employees in commercial activities: Their salary already includes payment for public holidays. If they work on the holiday, they are entitled to an additional ordinary day's pay, resulting in double pay for that day.
• In both cases, overtime worked on the holiday must be compensated at a 50% surcharge on the double hourly rate, effectively resulting in double time and a half.

Compensation Rules for the Non-Mandatory Paid Public Holiday (August 2)

• As for employees paid on a monthly or biweekly basis, their salary already covers every day of the month. Accordingly, they are entitled to enjoy the holiday with pay, as it is already included in their salary. If they work on that day, they are entitled to double pay, either through payment of an additional day's wages or payment for the actual hours worked that day. Overtime worked on this holiday must be compensated at triple time.
• As for employees paid weekly, daily, or by the hour, they are directly affected by the non-mandatory nature of the holiday. While they may take the day off, the employer is not required to pay them if they do not work. If they do work, they are entitled to their regular pay rate, while overtime must be compensated at time and a half.

Public Holidays Falling on Weekends: What Happens If They Coincide with an Employee's Regular Day Off?

This year presents a particular circumstance, as July 25 falls on a Saturday and August 2 falls on a Sunday, which may coincide with employees' regular days of rest.

If Saturday or Sunday is not part of the employee's regular work schedule, meaning it is their normal day off and they are not required to work, the employer is not required to provide the double pay applicable to the mandatory paid public holiday (except in the case of hourly-paid employees, who would still receive the additional payment corresponding to the July 25 holiday). However, if the employee is asked in advance to work on the public holiday, the general compensation rules described above will apply.

May Employers Require Employees to Work on Public Holidays?

Although the general rule is that employees are entitled to enjoy public holidays, employers may, on an exceptional basis, require employees to work on those days, provided they give sufficient prior notice and there are objective business reasons for doing so, or the nature of the business demands it, as established in Articles 150 and 151 of the Labor Code. In such cases, an employee's unjustified refusal to work may be subject to disciplinary action.

Will These Public Holidays Be Moved?

Unlike previous years, public holidays in 2026 will not be moved to the preceding or following Monday. Instead, they must be observed on the dates on which they are officially commemorated.

Over the coming days, we will provide further details regarding the specific rules applicable to the upcoming August 15 and August 31 public holidays.