Puerto Rico
Make employment in Puerto Rico easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Puerto Rico, all in one easy-to-use platform.
- Capital City
San Juan
- Currency
United States Dollar ($, USD)
- Languages
Spanish and English
- Population size
3,285,874
Facts & Stats
- Capital City
San Juan
- Currency
United States Dollar ($, USD)
- Languages
Spanish and English
- Population size
3,285,874
- Ease of doing business
Easy
- Cost of living index
N/A
- Payroll frequency
Monthly
- VAT - standard rate
11.5%
- GDP - real growth rate
-3.9% (2020)
Puerto Rico is a Caribbean island and an unincorporated territory of the United States. This vibrant island boasts pristine rainforests, hundreds of miles of tropical beaches, a rich history filled with fabled pirates and transoceanic trade (Puerto Rico has a particularly strong coffee industry).
Puerto Ricans are proud of their national identity and their own unique local culture. The island’s capital of San Juan is brimming with vibrant nightlife. Restaurants, shops, hotels, and cafes make this a perfect place for digital nomads to stop and sample island life – as long as they have the correct legal right to work!
Grow your team in Puerto Rico with Remote
Want to employ workers in Puerto Rico? Companies hiring in Puerto Rico are typically required to either own a local legal entity or work with a global employment platform like Remote that can legally provide employment services in the country.
Remote can employ team members in Puerto Rico and keep you compliant. Remote can hire, onboard, and pay your Puerto Rico team so you don't have to set up local HR services in the region. Remote also makes it easy to pay contractors in Puerto Rico. now to get started or talk to an expert for more details.
Risks of misclassification
Puerto Rico, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Puerto Rico may lead to fines and penalties for the offending company.
Employing in Puerto Rico
Workers rights in Puerto Rico are covered by American Law and the Puerto Rican Constitution, both of which guarantee equal pay for equal work and protections against discrimination based on age, religion, gender expression, and race.
Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Puerto Rico.
Minimum wage
Applicable to all employees covered by the federal Fair Labor Standards Act (FLSA) except for agricultural employees and employees of municipalities and the Commonwealth of Puerto Rico.
Basic Minimum Rate (per hour): $9.50
The minimum wage will increase to $10.50 per hour on July 1, 2024, unless the Commonwealth issues a decree changing the amount.
Premium Pay After Designated Hours: Daily - 8, Weekly – 40, and on statutory rest day (time-and-a-half). Employees entitled to greater rights or benefits who were hired prior to January 26, 2017 shall maintain said rights or benefits.
Employers covered by the FLSA but who are not subject to the Puerto Rico Minimum Wage Act must pay at least the federal minimum wage of $7.25 per hour.
Onboarding Time
We can help you get a new employee started in Puerto Rico fast. The minimum onboarding time we need is only 5 working days.
Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.
For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.
Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.
18 Public holidays
Effortless HR Puerto Rico: Take the Tour
Competitive benefits package in Puerto Rico
At Remote, we’re passionate about helping you craft the best possible employee experience for your team. We are leading the way in developing globally competitive benefits programs. This means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive, and your company has the localized expertise needed to attract and keep the best global talent.
Our benefits packages in Puerto Rico are tailored to fulfill the local needs of employees. Typically, our packages contain some or all of the following benefits:
Health Insurance
Dental Insurance
Vision Insurance
Mental Health Support
Pension or 401(K)
Life and Disability Insurance
Transparent Pricing in Puerto Rico
Employer of Record
$599
paid annually, or $699/month paid monthly
Top features
Hire without opening a local entity
Guided onboarding
Local payroll paid on time, every time
Built-in security and compliance
Flexible, localized benefits
Offer equity incentives with tax assistance
Dedicated experts for local support
Contractor Management
$29
per contractor/month
Top features
Only pay for contractors you actively work with
Work with international contractors
Create, edit, and sign tailored, localized contracts
Approve contractor invoices with one click or auto-pay
Transparent payments with complete visibility
Payroll
$29
per employee/month
Top features
Powerful, transparent international payroll
Simple self-service platform
Personalized support from dedicated specialists
Adhere to local payroll regulations in every country
Integrated payroll, expense management, and HRIS solution
HRIS
$18
per employee/month
Top features
Guided onboarding and offboarding
Employee profile and document management
Contract templates and e-signing
Time off and time tracking
Expense management
Employee and manager self-serve experience
Mobile app