Puerto Rico is known to be one of the most dynamic economies in the Caribbean region. The major industries of the country are Agriculture, Manufacturing, and Service. However, Service holds the highest economic value. Finance and real estate contribute 20% of the GDP, while tourism provides $5.5 billion every year from Services in Puerto Rico.
San Juan, Bayamon, Carolina, Ponce.
Financial Manager, Information Technology Engineers, Developers, Software Engineers.
The top local universities in Puerto Rico with the world rank are mentioned below:
Local: 1
World : 973
Local: 2
World : 984
Local: 3
World : 1980
Local: 4
World : 2052
Local: 5
World : 2557
The average salary data of the some of the jobs in Puerto Rico are mentioned below:
Job Title | Salary Range (USD) |
Financial Manager | 37,600 USD |
General Manager | 35,000 USD |
Information Technology Manager | 32,200 USD |
Business Development Manager | 31,500 USD |
Business Analyst | 23,700 USD |
Project Manager | 21,900 USD |
Developer | 18,500 USD |
GRCExecutive, Indeed, LinkedIn
887,000
An Employment Contract is mandatory; it can be verbal or written. This section will help employers know about employment laws, bonuses, allowances, and more to onboard an individual.
In Puerto Rico, the employer can choose a written contract for permanent employees and a verbal contract for temporary employees. The language of the employment contract must be English. Additionally, the contract should have all the terms and conditions of the employer and work.
The probation period in Puerto Rico is 10 Months
Date | Name | Type |
1 Jan | New Year’s Day | Public Holiday |
2 Jan | Day off for New Year’s Day | Public Holiday |
6 Jan | Epiphany | Public Holiday |
7 Apr | Good Friday | Public Holiday |
14 May | Mothers’ Day | Public Holiday |
18 Jun | Fathers’ Day | Public Holiday |
23 Nov | Thanksgiving Day | Public Holiday |
25 Dec | Christmas Day | Public Holiday |
Type of Leave | Time Period | Mandatory |
Annual Leave | 6 days | Yes |
Sick Leave | 12 days | Yes |
Maternity Leave | 56 days | Yes |
The payroll cycle in Puerto Rico is Weekly.
If it exceeds over 8 hours, it is considered overtime, and the employer has to compensate with 1.5 times of wage for each extended hour.
In Puerto Rico, the 13th month pay is mandatory.
Funds | Contributions |
Old Age, Survivors, and Disability Insurance Tax (FICA) | 6.2% |
Medicare (FICA) | 1.45% |
Disability Insurance | 6% |
Federal Unemployment Tax Rate (FUTA) | 6.3% |
State Unemployment Tax Rate (SUTA) | 1% – 5.4% |
Chauffeurs Insurance** | USD 0.30 per week |
Funds | Contributions |
Old Age, Survivors, and Disability Insurance Tax (FICA) | 6.2% |
Medicare (FICA) | 1.45% |
Medicare (FICA)* | 0.9% |
Chauffeurs Insurance** | USD 0.50 per week |
*Federal Medicare for an additional USD 250,000 (for a married couple with joint return), USD 125,000 (for a married couple with separate return), and USD 200,000 (for other individuals).
**Employers having one or more drivers must contribute to Chauffeurs Insurance.
Annual Taxable Income | Tax rate |
0 to 9000 USD | 0% |
From 9000 USD to 25000 USD | 7% (excess over 9000 USD) |
From 25000 USD to 41500 USD | 1,120 USD + 14% (excess over 25000 USD) |
From 41500 USD to 61500 USD | 3,430 USD + 25% (excess over 41500 USD) |
Above 61500 USD | 8,430 USD + 33% (excess over 61500 USD) |
In Puerto Rico, the standard rate of VAT is 11.50%.
The employer can dismiss the employment contract based on a reason or cause, and the employee will be given severance pay. In case of dismissal of contract due to misconduct, the employer will not provide any severance pay.
The notice period is 30 days.
The severance pay is Three months’ salary and an additional amount of two weeks’ salary for each year of service.
An individual will require a Puerto Rican embassy visa. The individual has to apply in a US diplomatic government office for this visa. The individual has to provide all the documents and the employment contract in person in the US government diplomatic office in the country. In Puerto Rico, 190 countries must apply for a visa from the US embassy.
The minimum wage in Puerto Rico varies based on the following factors:
Category | Minimum Wage per hour |
Employers under USA Federal Fair Labor Standards Act (FLSA) | 8.50 USD |
Employers not under USA Federal Fair Labor Standards Act (FLSA) | 5.08 USD |
Workers on Tip | 8.50 USD |