It is important to note that the Department of Treasury of the Commonwealth of Puerto Rico changed the requirements for paying Christmas bonuses with the enactment of the Labor Transformation and Flexibility Act of 2017 (PC 0453) in January 2017.
The changes to the rules for the payment of Christmas Bonuses in Puerto Rico are detailed below.
The Labor Transformation and Flexibility Act of 2017 (PC 0453) stipulates the following requirements regarding Christmas bonuses for employees hired after January 26, 2017.
Employees hired AFTER January 26, 2017:
• Must work at least 1,350 hours per year to be eligible for the bonus
• Will earn a Christmas bonus equal to 2% of wages earned, up to $600
• If an employer has fewer than 20 employees, up to $300
• May be paid 50% of the applicable Christmas bonus during their first year of employment
Employees hired BEFORE January 26, 2017:
• Must need to work 700 hours per year to be eligible for the bonus
• Shall continue to earn a bonus equal to 6% of up to $10,000 of wages earned ($600)
What you Need to Do:
Carefully review your Earnings Record or Master Control reports to assist with any calculations before processing any Christmas bonus payments.