Private employers have until December 1 to prove they can’t pay Yule bonuses

By THE STAR STAFF

Private employers who qualify for an exemption from paying the Christmas bonus to their workers have until Monday, December 1 to submit the required documentation, according to Labor and Human Resources Secretary María del Pilar Vélez Casanova.

The official urged employers to take the necessary steps to comply with Law No. 148 of June 30, 1969, as amended, which mandates the payment of the annual bonus between November 15 and December 15. Vélez Casanova emphasized that the bonus is “one of the most anticipated benefits by the working class” and represents both a legal obligation and recognition of employees’ contributions throughout the year.

“We are in the period to comply with the payment of the Christmas bonus. This incentive is not only a legal mandate but also a gesture of appreciation for the work and commitment of employees during the year. We urge employers to fulfill this responsibility and, in cases where economic conditions do not allow payment, to request the exemption within the established deadline,” Vélez Casanova said.

Employers seeking an exemption must demonstrate financial hardship, such as losses or insufficient profits to cover the bonus without exceeding 15% of annual net earnings. Applications must include a certified financial statement of the period October 1, 2024, to September 30, 2025, signed and sealed by a licensed CPA. For businesses with a different fiscal year, statements for that period plus interim financials up to September 30, 2025.

Requests can be submitted in person at any Work Standards Bureau office during business hours or by mail, provided the postmark meets the deadline.

The Department has also created a task force of accountants to review applications with greater rigor and efficiency, ensuring transparency and compliance with the law.

Meanwhile, the Financial Oversight and Management Board for Puerto Rico has authorized the disbursement of nearly $50 million to fund Christmas bonuses for public employees, following a request from the Office of Management and Budget (OMB).

In a letter addressed to OMB Executive Director Orlando Rivera Berríos, the Board confirmed its approval of budgetary reprogramming request PP 2026-00030M, which reallocates funds from existing payroll and operating appropriations within the FY2026 General Fund. The approved amount totals $49,518,990, which will be distributed among various government agencies to cover the annual holiday payments.

The decision allows the OMB to transfer funds under its custody to agencies responsible for paying the bonuses, ensuring compliance with local statutes that mandate these seasonal benefits for eligible public employees. “After reviewing the request and supporting documents, the Oversight Board makes the following determination: Approved,” the letter states.