Hire and pay employees in Puerto Rico compliantly from day one

Easily hire employees in Puerto Rico with Deel. Deel's best-in-class Employer of Record setup allows us to handle local laws, tax and benefits, and international payroll on your behalf in 150+ countries including Puerto Rico.

Backed by local experts and built-in compliance protection, your next hire could start in as little as 2 days with Deel.

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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, and licensing, can take months.

Now you can hire employees in Puerto Rico quickly, easily and compliantly. Automate tax document collection, payroll, benefits, and more. And once your new hire is onboarded, Deel HR keeps their time off and documents in one place, so managing your team in Puerto Rico doesn't mean a separate system.

Already have an entity in Puerto Rico? Our PEO services can run payroll and compliance for your direct employees.

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Currency
 United States Dollar - USD
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Capital San Juan
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Official language Spanish & English
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Payroll cycle Monthly

All the necessary benefits for Puerto Rico built right in

Deel allows you to provide localised benefits for employees in Puerto Rico within minutes. All from 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

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Our quick-start 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 using progressive rates. Several additional factors may affect overall rates, such as household status and the number of children.

Payroll Cost

The employer cost is estimated at 14.35% of the employee's 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 USD 160,200

  • Disability insurance - 0.30%***

  • the maximum salary for the contribution is USD 9,000

  • up to a maximum salary for contributions of USD 7,000

** up to a maximum salary for contributions of USD 160,200

*** up to a maximum salary for contributions of USD 9,000

Annual Costs

13th month salary - 2% of salary, no more than USD 600

In Puerto Rico, in accordance with local labour law, the maximum annual contributions for FICA, FUTA, PR unemployment and disability are USD 11,245.50, USD 56, USD 266 and USD 27 respectively. Once met, no further contributions are required.

  • Employer liability cost - an administrative fee of 0.60% is applied to ensure ongoing workers' compensation and liability coverage

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 at 150% of the hourly rate.

  • Non-exempt employees, according to federal and Puerto Rico overtime laws, are employees who 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.

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 and complex tax systems to running your payroll in Puerto Rico and 150+ other countries.

Management fee
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Starting at

$599
/month
Estimated Employer Cost
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14.35%

of employee salary