Hire and pay employees in Puerto Rico, hassle-free
With Deel, your business can easily hire employees in Puerto Rico. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries. The average onboarding time frame in the Puerto Rico is 2 days with Deel.
Onboard, pay and manage employees in Puerto Rico with Deel
Usually, to hire in Puerto Rico, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.
Now you can hire employees in Puerto Rico quickly, easily, and compliantly. Automate tax document collection, payroll, benefits, and more. For your existing direct employees, we can manage your entire payroll operation from end-to-end.
Currency United States Dollar - USD
Capital San Juan
Official language Spanish & English
Payroll cycle Monthly
All the necessary benefits for Puerto Rico built right in
Deel allows you to provide localized benefits for employees in Puerto Rico within minutes. All in one manageable online dashboard in a single HR platform.
- Public Health Care
- Social Security
- Workplace Accident Insurance
- Private Healthcare - Unisure (optional)
- Private Healthcare - Allianz (optional)
- Global Life Insurance - Allianz
Our quickstart guide to hiring in Puerto Rico
Navigate the tabs below to learn everything you need to know about hiring an employee in Puerto Rico
Minimum Wage Requirements
The minimum wage is USD 1,160 per month.
Individual Income Tax
The individual income tax ranges from 0% to 33%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates, such as household status and the number of children.
Payroll Cost
The employer cost is estimated at 13.75% of the employee salary.
Monthly Costs
- Puerto Rico unemployment - 2.70%*
- Puerto Rico Special Assessment - 1.00%*
- Workers Compensation Insurance - 1.50%
- Federal Unemployment Tax (FUTA) - 0.60%*
- Federal Social Security and Medicare (FICA) - 7.65%**
- the maximum salary for the contribution is USD160,200
- Disability Insurance - 0.30%***
- the maximum salary for the contribution is USD 9,000
*up to a maximum salary for the contributions of USD 7,000
*up to a maximum salary for the contributions of USD160,200
*up to a maximum salary for the contributions of USD 9,000
Annual Costs
13th Month Salary - 2% of salary, no more than $600 USD
In Puerto Rico, in accordance with local labor law, the maximum annual contribution for FICA, FUTA, PR Unemployment and Disability are USD 11,245.5 , USD 56, USD 266 and USD 27 respectively. Once met, no further contributions are required.
These costs are provided as estimates and are intended solely for general informational purposes. To fully comprehend all associated costs and fees related to the terms of any employment agreement for this country, please contact our Sales team for a quote.
Overtime Pay & Maximum Hours
Standard working hours are 8 hours per day and 40 hours per week. The standard workweek is from Monday to Friday.
Overtime payment is mandatory for non-exempt employees. Hours outside of standard work hours are considered overtime. For additional hours, employees are paid 150% of the hourly rate.
- Non-exempt employees, according to federal and Puerto Rico overtime laws, are employees that do not spend most of their time managing teams or performing executive or professional duties and earn a salary above USD 2,964 per month.
Download the complete guide to hiring in Puerto Rico
Hiring in Puerto Rico, hassle-free
With Deel, your business can easily hire employees in Puerto Rico with our EOR solution. If you have an entity, our Global Payroll solution takes care of payroll and compliance for your direct employees. Our 250+ in-house experts handle everything from managing local laws, complex tax systems, or your payroll in Puerto Rico and 150+ countries.
Management fee
Starting at
$599
/month
Estimated Employer Cost
13.75%
of employee salary