Puerto Rico

• New Year’s Day
• Martin Luther King Jr. Day
• Presidents’ Day
• Emancipation Day
• Good Friday
• Memorial Day
• Independence Day
• Constitution Day
• Labour Day
• Day of the Race
• Veterans’ Day.

Working Hours

Working hours cannot exceed 40 hours per 5 day working week.

Minimum Wage

Minimum wage in Puerto Rico is USD 10.50 per hour from 1st July 2024.

Employee Tax

Annual income	Tax rate
Up to USD 9,000	0%
USD 9,001 - 25,000	7%
USD 25,001 - 41,500	14% + USD 1,120
USD 41,501 - 61,500	25% + USD 3,430
More than USD 61,500	33% + USD 8,430
Social security contribution	6.2%

Bonuses

Puerto Rican employers with more than 15 employees must pay qualifying employees a bonus equivalent to 6% of their salary, up to a maximum of USD 10,000.

Employers with up to 15 employees will pay a bonus equivalent to 3% of the salary of each employee, also up to a maximum of USD 10,000.

Indefinite contracts in Puerto Rico can be made verbally. If a contract is fixed-term, this must be agreed in writing.

Annual Leave

In Puerto Rico, the minimum monthly accrual of vacation leave is 0.5 days during the first year of service; 0.75 days after the first year and until the fifth year; one day after five years until 15 years; and 1.25 days after 15 years.

Sick Leave

All employees in Puerto Rico who work at least 130 hours per month earn paid sick leave of 1 day for every month worked.

Parental Leave

Puerto Rico offers eight weeks of maternity leave: four weeks pre-birth and four weeks post-birth.

Employees have no specific entitlement to paternity leave under local Puerto Rico law. However, under US federal law that is applicable to Puerto Rico, employees who work for an employer with 50 or more employees are entitled to unpaid leave of up to 12 weeks a year for specified family and medical reasons such as childbirth and adoption.

Termination Process

Employers in Puerto Rico must have just cause to terminate the employment of an employee hired for an indefinite period of time.  No advance notice of termination is enforced.

Severance Pay

In Puerto Rico, an employee discharged without cause is entitled to receive the equivalent of two months’ salary plus one week of pay for each full year of service if they have worked for the employer for up to five years.

If the employee has worked for more than five years and up to 15 years, they are entitled to receive three months' salary plus two weeks of pay for each year of service.

Employees who have worked for an employer for more than 15 years are entitled to receive six months of salary plus three weeks of pay for every year of service.

Under a Mauve Group Employer of Record solution, clients and workers can reap the benefits of Mauve’s Global Master Insurance Programme – a market-leading unified corporate insurance programme that connects all Mauve entities to its two preferred providers.

The insurance provides coverage in overseas locations through a combination of the master policy and its linked local policies, where required by law in certain jurisdictions.  The policies include:

• Employer’s Liability and Public Liability - £10,000,000 combined limit.
• Professional Indemnity - £5,000,000 limit.
• Worker’s Compensation – Limit is dependent on location of work.

For specific information about statutory and recommended insurances in your chosen country, get in touch with Mauve.