Dec 5, 2025
How the Bonus Is Calculated: The “One-Twelfth Rule”
The statutory formula is straightforward:All ordinary and extraordinary salary-based earnings received between December 1 of the previous year and November 30 of the current year are added and then divided by 12. (Source: Escuela Judicial, Poder Judicial)
The calculation includes not only base salary but also overtime, bonuses, commissions, paid holidays worked, and any other recurring salary-linked income. Payments in kind may also be included if assigned a reasonable monetary value. (Source: MTSS – Ministry of Labor, FAQ)
If a worker joined the company during the year or left before December, the bonus must be prorated in proportion to the time worked.(Source: La Teja).
Employer Obligations and Consequences of Non-Compliance
Payment of the Christmas Bonus is mandatory and must be complete and timely. Failure to comply exposes the employer to sanctions, claims before the Ministry of Labor and Social Security (MTSS), and potential legal liabilities. (Source: MTSS Press Releases)
The law also requires that the bonus be paid in a single lump-sum payment; dividing it into installments without legal justification may increase compliance risks. (Source: CRHoy)
For proper internal control, companies should issue a signed receipt acknowledging payment. This supports both payroll audits and internal compliance procedures.
Recommended Practices for 2025
To ensure accurate and compliant management during this year-end process, companies should:
Conduct a detailed review of payroll for the December 2024 – November 2025 period, ensuring all salary-based compensation is included.
Verify any compensation in kind and ensure it carries a reasonable and supportable monetary value.
Plan cash flow to guarantee sufficient liquidity for the total bonus payment.
Provide written acknowledgments of payment to all employees.
Prepare proportional calculations for new hires, temporary staff, or employees who left before December.
The 2025 Christmas Bonus is not an optional expense nor a mere administrative formality. It is a legally protected right with a clear calculation method, firm deadlines and real consequences for non-compliance.
For responsible employers, meeting this obligation not only prevents sanctions but also strengthens the trust and stability of their teams and reinforces orderly and transparent corporate management.
Fulfilling the aguinaldo requirement is more than compliance; it is a commitment to formality, stability and long-term business integrity