#CostaRica 🇨🇷 #BDS_LaborAlert: Labor Day Holiday Approaching: These Are the Applicable Legal Provisions

On Thursday, May 1, our country will celebrate Labor Day, also known as "International Workers' Day." This holiday, which currently is often regarded simply as a day of rest, originated from a labor movement in 1886 during which workers demanded improvements to their working conditions.

In Costa Rica, this day is considered as a mandatory paid holiday pursuant to article 148 of the Labor Code. Accordingly, all workers are entitled to enjoy the holiday and may not be required to work on that day, save for the exceptional cases provided for under articles 150 and 151 of the same Code.

Salary Provisions

Employers who pay wages on a weekly basis (in non-commercial activities) must pay for the days worked during that week and add a regular day’s wage for the holiday. If an employee is required to work on the holiday, the additional pay must be double the regular wage rate.

On the other hand, employers who make monthly, biweekly, or weekly payments in commercial activities already include payment for holidays within the salary for all days of the month. Therefore, if an employee works on May 1st, they must be paid an additional day’s wage to comply with the double payment required by law.

If an employee works overtime on this holiday, the overtime must be paid at double time and a half rate, meaning the employee will receive triple pay for those hours.

For 2025, as with other commemorative dates, the holiday will not be moved; therefore, it must be observed on Thursday, May 1st.

Labor Day is a time to reflect on workers’ historical struggles to achieve labor rights and also serves as a reminder of the ongoing need to engage in efforts to continue improving working conditions for the labor force in our country.

Please contact us if you have any questions regarding the handling of this or other holidays. We are available to assist you.

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