Payroll Cycle
Minumum Wage
Overtime Pay
Visa Immigration

Talent Wiki - Puerto Rico

Your quick guide on talent and labor compliance norms in Puerto Rico
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Capital
San Juan
Currency
United States Dollar (USD)
Languages
Spanish and English
Payroll Frequency
Bi-weekly basis
GDP per Capita
$35,106.44
Employer Tax
19.75% - 25.15%

Supplementary Guide for Employment and Expansion in Puerto Rico

Talent Overview

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.

Major Economic Hubs: 

San Juan, Bayamon, Carolina, Ponce.

Skills in Demand:

Financial Manager, Information Technology Enginers, Developers, Software Engineers.

Local Universities

The top local universities in Puerto Rico with the world rank are mentioned below:

Universidad de Puerto Rico

RANKING

Belarus : 1

World : 738

Universidad de Puerto Rico, Recinto Universitario de Mayagüez

RANKING

Belarus : 2

World : 1044

Universidad Interamericana de Puerto Rico

RANKING

Belarus : 3

World : 1633

Recinto de Río Piedras

RANKING

Belarus : 4

World : 2156

Universidad del Sagrado Corazon

RANKING

Belarus : 5

World : 3023

Salary Data

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

Talent Sourcing Tips

Top Local Job Boards: 

GRCExecutive, Indeed, LinkedIn

Number of LinkedIn users:

8,57,000

Top Recruitment Agencies:

AppleOne, Manpower, CapaTalent

Employing in Puerto Rico

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.

Employee Contract

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.

Probation Period

The probation period in Puerto Rico is 10 Months

Public and Provincial Holidays

Date Name Type
1 Jan New Year's Day Public Holiday
6 Jan Epiphany Public Holiday
17 Jan Martin Luther King Jr Day Bank/Public Sector Holiday
21 Feb Presidents' Day Bank/Public Sector Holiday
2 Mar American Citizenship Day Bank/Public Sector Holiday
22 Mar Emancipation Day Bank/Public Sector Holiday
15 Apr Good Friday Public Holiday
8 May Mothers' Day Public Holiday
30 May Memorial Day Bank/Public Sector Holiday
19 Jun Fathers' Day Public Holiday
4 Jul US Independence Day Bank/Public Sector Holiday
25 Jul Constitution Day Bank/Public Sector Holiday
5 Sep Labor Day Bank/Public Sector Holiday
10 Oct Columbus Day Bank/Public Sector Holiday
11 Nov Veterans Day Bank/Public Sector Holiday
19 Nov Discovery Day Bank/Public Sector Holiday
24 Nov Thanksgiving Day Public Holiday
25 Dec Christmas Day Public Holiday
26 Dec Day off for Christmas Day Public Holiday

Employee Leaves

Type of Leave Time Period Mandatory
Annual Leave 6 days Yes
Sick Leave 12 days Yes
Maternity Leave 56 days Yes

Payroll

Payroll Cycle:

The payroll cycle in Puerto Rico is Weekly.

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Minimum Wage:

The minimum wage in Puerto Rico varies based on the following factors:

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

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Overtime Pay:

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.

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Health Examination Clause

Bonus

13th Month Pay: 

In Puerto Rico, the 13th month pay is mandatory.

Employee Benefits: 

  • ~Medical Benefits
  • ~Disability Insurance
  • ~Old-age benefits
  • ~Bonuses
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Taxes

Employer Payroll Tax:

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%
State Unemployment Tax Rate (SUTA) 1% - 5.4%
Chauffeurs Insurance** USD 0.30 per week

Employee Payroll Tax:

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.

Employee Income Tax:

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)

VAT:

In Puerto Rico, the standard rate of VAT is 11.50%.

Offboarding & Termination

Termination Process

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.

Notice Period

The notice period is 30 days.

Severance Pay

The severance pay is Three months' salary and an additional amount of two weeks' salary for each year of service.

Visa and Immigration

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.

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