Law No. 148 of June 30, 1969, as amended, requires that employers pay bonuses to all employees who have worked more than 700 hours during the 12-month qualifying period starting September 30 and ending on October 1.
Employers with up to 15 employees shall pay their qualified employees a bonus equal to 3% of the employee’s earned wages during the qualifying period, up to $10,000; therefore, a maximum bonus of $300. Employers with 16 or more employees shall pay their qualified employees a Christmas bonus equal to 6% of the employee’s earned wages during the qualifying period, up to $10,000; therefore, a maximum bonus of $600.
According to regulations of the Department of Labor and Human Resources of Puerto Rico, an employee’s wage includes the base salary, commissions, vacation and sick leave payments, unemployment insurance, and disability insurance.
Employees in agricultural activities, domestic activities, charitable institutions, and the government are excluded from the application of Law No. 148, and need not to receive the bonus as prescribed by said law.
Law No. 148 also requires that the bonuses be paid to employees between December 1 and December 15. An alternate payment period could be applicable if employers and employees agree to it in writing, and the change in payment period should be notified to the Department of Labor and Human Resources of Puerto Rico on or before November 30 of the current year.
If the bonus is not paid in the period prescribed by law or the alternate payment period, if applicable, employers will have to pay as bonus to their employees 1.5 times of what they would have received, if the payment is made no later than 6 months after the expiration of the period, and 2 times what they would have received, if the payment is made 6 months after the expiration of the period.
