If you work in the private sector, the Christmas bonus in Puerto Rico is a right established by Law 148 of 1969. The legal minimum can reach $600, depending on your hire date and the size of your employer. In government, the Executive Branch pays a $600 bonus, the cap set by the Puerto Rico Treasury Department (Hacienda), and certain retirees receive $200.
Here, Christmas lasts until Three Kings Day, so your bonus goes further when you plan it. Heads up: according to the Department of Labor and Human Resources (DTRH), 272 employers requested an exemption in 2025. In this guide, we walk through the 2026 Puerto Rico Christmas bonus rules and how to get the most out of your payment.
What is the Christmas bonus in Puerto Rico?
The Christmas bonus is an annual payment that the law requires employers to make. In the private sector, it's governed by Law 148-1969, and in the public sector, by Law 34-1969. The amounts in the law are minimums: your employer can pay you more, but never less, unless the DTRH approves an exemption.
A brief history of the Christmas bonus
Both laws date back to 1969, but the Labor Reform (Law 4-2017) created separate rules for anyone who started on or after January 26, 2017. Some people call them the "new Christmas bonus." Because the federal court struck down Law 41-2022, according to Ayuda Legal Puerto Rico, those 2017 rules remain in effect.
How much is the Christmas bonus in Puerto Rico?
The amount of the Christmas bonus depends on where you work. In the private sector, Law 148 sets a minimum of up to $600 or $300, depending on when you were hired and the size of your employer. In the Executive Branch, the cap is $600, and certain government retirees receive $200.
How the Christmas bonus is calculated
Apply your percentage to your wages for the period, then take whichever is lower: that result or your cap. With $1,600 a month ($19,200 from October to September):
- Before 2017, employer with more than 15 employees: 6% of $10,000 = $600.
- Before 2017, employer with 15 or fewer: 3% of $10,000 = $300.
- Since 2017, employer with more than 20 employees: 2% of $19,200 = $384.
- Since 2017, employer with 20 or fewer: $384, limited to the $300 cap.
- Since 2017, first year of employment: half of $384 = $192.
Note: This is a fictional example for illustrative purposes. The amounts, APR, payments, and costs shown do not represent actual offers, rates, or terms from any lender or service provider.
Christmas bonus for public employees
Law 34 sets the bonus at 12.5% of annual salary up to $8,000 (a maximum of $1,000). But according to Hacienda's Circular Letter 1300-14-26 (2025), the Executive Branch grants no more than $600. The University of Puerto Rico (UPR) and the municipalities fall outside that cap.
According to the same Circular Letter, you qualify with 6 months of service (regular employees) or 960 hours (irregular employees) between December 1 and November 30. Payment is due December 20; the 2026 payment date hasn't been announced yet.
What are the requirements for the Christmas bonus in Puerto Rico?
Eligibility for the Christmas bonus comes down to the hours you worked between October 1 and September 30. You need 700 hours if you were hired before January 26, 2017, or 1,350 if you were hired after. It doesn't matter whether you work full time or part time: what counts is the hours.
According to Ayuda Legal Puerto Rico, leave hours (vacation, sick leave, maternity leave, or State Insurance Fund leave) don't count toward the total. Did you leave the company after reaching the required hours? You keep your right to the bonus.
Law 148 excludes agricultural work, domestic service, and charitable institutions. If your collective bargaining agreement gives you less than the law requires, your employer has to make up the difference.
When is the Christmas bonus paid, and what happens if it doesn't arrive?
According to the DTRH, the private-sector Christmas bonus is usually paid between November 15 and December 15. In the public sector, the deadline is December 20. If your private employer pays late, the law requires it to pay you additional compensation.
Under Law 148, if your employer pays within the first 6 months of the delay, it owes you the bonus plus half. If it takes longer, it owes you double.
Which companies won't pay a Christmas bonus?
An employer without enough profits can ask the DTRH for an exemption from the Christmas bonus, backed by financial statements certified by a CPA. For 2026, according to the DTRH notice, the deadline is Monday, November 30, at 4:00 p.m.
Requesting an exemption isn't the same as receiving one: the DTRH can approve it in full or in part, or deny it.
According to the DTRH press release (2025), 272 employers requested an exemption in 2025, compared with 297 in 2024. There were 236 full exemptions, 5 partial exemptions, and 31 denials.
Secretary María del Pilar Vélez Casanova summed it up this way: "This trend reflects… a more stable and responsible employer sector, and a greater awareness of compliance with labor obligations."
In December 2025, the DTRH published the official list of exempt employers, and it usually updates the list every year. If someone at your job says "there's no Christmas bonus this year," look up your employer on that list first.
Do retirees receive a Christmas bonus?
Some retirees do. According to the Retirement Board, the Christmas bonus for Central Government retirees is $200 if you retired before July 2013. Under the Teachers' system, the $200 bonus covers those who were retired as of July 31, 2014, not those who retired later.
Are there deductions from the Christmas bonus?
According to Hacienda's Circular Letter (2025), the public-sector bonus has no retirement or savings deductions. If it's $600 or less, it also has no Puerto Rico income tax withholding. Social Security and Medicare are withheld as required by law.
Important: In the private sector, the Christmas bonus may be subject to withholding. The available Hacienda guidance is from 2012, and we haven't confirmed it's still current. Ask your employer or Hacienda.
How can you make the most of your Christmas bonus without going into debt?
Decide where your bonus will go before it arrives, and split it by priority: debt, emergency fund, and holiday spending. That way, the money lasts you all the way to Three Kings Day. First, confirm your actual amount using the rules in this guide before you divide it up.
The median household income in Puerto Rico is $26,297, according to the U.S. Census Bureau (ACS 2020-2024). In the U.S., 63% of adults would cover an unexpected $400 expense with cash or its equivalent, according to the Federal Reserve (SHED 2025).
Imagine your bonus is $384 and you split it like this:
- Set aside $150 to make an early payment on a credit card.
- Put $134 in your emergency fund.
- Save $100 for gifts and Three Kings Day.
Note: This is a fictional example for illustrative purposes. The amounts, APR, payments, and costs shown do not represent actual offers, rates, or terms from any lender or service provider.
If you're carrying several debts, check out this guide to consolidating debt and these strategies for saving every month. Don't count on the bonus before you have it, and don't assume the amount. And in December, be careful about charging purchases to your card that you won't be able to pay off.
What to do if an unexpected expense is bigger than your bonus
If your car breaks down or your generator fails and the bonus isn't enough, compare the types of loans available. Keep in mind that every loan is a debt.
With Kiwi, you can apply for a personal loan of up to $3,000* in Puerto Rico, 100% from your phone, in minutes. You'll get a decision, subject to evaluation, in about 24 to 48 business hours. Once you're approved, the money can arrive instantly via ATH Móvil, with no origination fees and no prepayment penalty.
Kiwi performs a soft pull on TransUnion that doesn't affect your FICO® score. It also performs a hard inquiry on Clarity Service that may appear on your Clarity Service report. Learn the difference between a soft pull and a hard pull and review the requirements for personal loans.
Paying on time can also help you build your credit history step by step. Individual results may vary. Any increase in your credit score depends on multiple factors.
*Subject to credit approval. Loan amounts may vary by applicant's state of residence.
Apply for up to $3,000
Frequently asked questions
How many hours do you have to work to receive the Christmas bonus?
You need 700 hours if you started before January 26, 2017, or 1,350 if you started after. The hours are counted from October 1 to September 30.
Are part-time employees entitled to the Christmas bonus?
Yes, if they meet the required hours, because Law 148 measures hours worked. In government, Hacienda also recognizes part-time employees.
What happens if I quit before the bonus is paid?
According to Ayuda Legal Puerto Rico, you keep your right to the bonus if you've already reached the required hours. If the payment doesn't arrive, file a claim with the DTRH.
Can my employer pay me less than the minimum?
Only if the DTRH approves a full or partial exemption. The amounts in Law 148 are minimums, and your employer can pay more.
Is the "aguinaldo" the same as the Christmas bonus?
No. Ayuda Legal Puerto Rico clarifies that an aguinaldo, or holiday gift, isn't part of the Christmas bonus the law requires.
Where do I file a claim if I'm not paid the Christmas bonus?
File a claim with the DTRH's Bureau of Labor Standards (787-754-5353, according to the DTRH in 2025). Before you do, check whether your employer has an exemption.
- Your hire date and your employer's size determine your legal minimum.
- Keep your own count of the hours you work from October to September.
- Requesting an exemption isn't the same as getting one; check the DTRH's official list.
- A late payment entitles you to an additional 50% or 100%.
- Plan where your bonus goes before it arrives, and confirm withholding with Hacienda.
